Case Studies

Challenges: After using one of the major PBMs for several years, Three-Hospital System realized the traditional PMB model did not meet their needs and decided to take complete control of its pharmacy benefit program. The System needed a long term solution that would meet its requirement for control and transparency, with minimal disruption.

Solution: Medical Benefit Manager (“MBM”)

Outcome: Over 20% Savings Per Member Per Month. Implemented with no member disruption and delivered higher savings than RFP expectations.

Challenge: Organization was seeking complete financial turnaround. 

Solution: Completed Financial & Operational Assessment, Labor Management Assessment, and Productivity Reports.

Outcome: Realized Cost Savings - $16M (total annual savings) for the financial turnaround, $9.4M per year attributed to efficiency improvements.

FTE/Adjusted Occupied Bed - reduced from 6.15 to 4.5 over a two year period (these figures include all system employees)

Challenge: Financially troubled, Health Network leadership was seeking opportunities to reduce operating cost and drive margin to net income. 

Solutions: MDR™ worked with executives to identify cost savings opportunities, focusing on the area of Spend Management/Supply Chain. Implemented Best Practices™ e-Payables and Electronic Data Interchange (EDI) solutions.

Results: E-payables solution generates $1M in total net income improvement from the cash rebate and reduced check printing cost. EDI delivered immediate ROI and significant cost savings. 

Challenge: Hospital leadership was seeking better visibility and management in the area of supply chain project management.

Solution: Value Analysis Management platform.

Result: Hospital was documenting $1.5M in savings each year. After implementing the Best Practices Solution, the Hospital implemented $4.5M in documented savings in 9 months! 

Challenge: Seeking Supply cost reduction, contract price compliance, corporate visibility into network of facilities, improve inventory control.

Solution: Materials Management Information System

Outcome: Achieved over $1M in savings within the first year of the system deployment. The savings was achieved by having greater visibility into the prices paid for each product across all ASCs through 3-way match process. Also, the enterprise system made it possible to track and enforce local and GPO contracts across all of ASCs.

Challenge: Wanted to ensure money on supplies was being spent in the most responsible and efficient way possible. Their biggest problem was the process that is required to deliver accurate and consistent reporting.

Solution: Electronic Materials Management System

Outcome: Updated and automated the entire process of supply chain management. Eliminated excessive ordering and reduced on-hand inventory of a single product category by more than $50,000 during the first month.

Challenge: The school district was looking for ways to automate their payment process and increase revenue back to the district.

Solution: Electronic Payment Solution

Results: Solution was up and running 10 days after signing the contract. Monthly rebate is $13K. Increased back-office efficiencies and increased vendor participation while enhancing the monthly rebate.

Challenge: Needed to reduce utility costs by replacing old, inefficient equipment with new, more energy-efficient HVAC systems. 

Solution: Collected all equipment data, performed energy calculations, completed grant application, and submitted the application to State Energy Conservation Office (SECO), all on behalf of the district. Also, served as the District’s prime contractor and provided project management and construction management, and handled all grant administration and grant reporting required by SECO.

Results: Upgrades save the district $60K annually on utility costs. The entire project was funded by the grant, with no out-of-pocket contribution from the district.

Challenge: The city was forced to deal with reduced budgets and was looking for ways to cut cost and increase revenues. The city looked for both process improvements as well as reduced labor costs.

Solution: e-Payment Portal

Results: The city generates over $300K annually through payments issued and processed. 

Challenge: The County was feeling pressure to reduce spending and the maintenance budgets were considered a target for review. Although the Purchasing Manager was concerned about the recent rise in overall spending on maintenance, the real issue was the loss of control and the mix of coverages.

Solution: Equipment Maintenance financial assessment.

Results: Hard-Dollar cost savings $86K (28%); asset management control of equipment by tagging each item; numerous real-time online management reports; improved communication through a single point of contact; service based optimization by reducing administrative burden with one Purchase Order. 

Challenge: City was seeking to save money through various energy efficiency initiatives.

Solution: Conducted technical energy audit, applied for local energy grant and focused on a major retro-commissioning effort in the most high energy use. Also, providing Active Energy Management services--delivers real-time utility data tracking, analysis and issue management.

Results: The installation of these energy conservation measures saves the City over $177K/year in utility and operational costs. Secured grants on the City’s behalf for $300K from New Energy Communities Initiative Grant and $82K from the Governor’s Energy Office’s Solar Rebate Program. Substantial rebates from the utility are also benefiting this project.

Challenge: Senior Bank Officers recognized the need to centralize the on-going management of equipment maintenance to reduce both the administrative burden and ever increasing cost. The client had over 100 separate contracts with more than 20 vendor relationships on nearly 500 pieces of equipment spread through 5 separate charters. 

Solution: Financial analysis resulted in a comprehensive maintenance program that addressed the organization’s initiatives to centralize maintenance under one program resulting in reduced maintenance costs and administrative tasks

Results: Hard-Dollar Cost Savings is $220K (21%); Administrative Savings $161K. Proprietary Dispatch program allowed the organization a vehicle to achieve their goals for a one-stop solution for service repair requests.

Challenge: The organization had an e-Payment program through their lending bank for several years. Current rebate earned was below expectations.

Solution: Replaced e-Payment program. Robust enrollment process maximized results.

Results: Within 2 weeks of converting, there was an additional $58M of annual vendor spend enrolled (+120% increase). The total annual vendor payment throughput after full enrollment is estimated over $125M (3X the bank program). At full enrollment, the annual rebate will be over $1.5M versus the $600K through the prior program.

Challenge: Seeking additional ways to cut costs in the area of carrier sourcing. They believed they were doing a decent job with bids, but felt like money was being left on the table.

Solution: Conducted Small Parcel Bid

Results: Spend dropped from $6.5M to $2.5M.