Challenge:
Houston Methodist Hospital’s telecom expenses increased even after they eliminated services. The reason for the increase was not clear and could not be explained by the service provider account team.
The IT team at Houston Methodist Hospital saw that costs kept going up even though they were eliminating services. Initially they relied on the provider Account Management Team to be proactive in reviewing the contract and services. When they learned that being proactive and looking out for their client was a thing of the past, they made numerous but unsuccessful attempts to get to the bottom of the issue. The relationship soured and communication broke down. As a result, Houston Methodist Hospital was left in the dark and continued to pay for outdated services which were being billed at full tariff rates.
Solution:
Overcharge Recovery Group (ORG) did a thorough and detailed review of the service contract and billing to discover the exact nature of the problem. Using their expertise and inside knowledge of carrier services, contracts and billing, ORG was able to determine the reason costs kept increasing. It turns out that contracts had expired, and services were being sunsetted. When sunsetting services, the carrier increased the costs dramatically, to motivate the client to migrate to better, faster, cheaper services. Since the client did not understand this and didn’t migrate services, they ended up paying more for outdated services. Once the problem was uncovered, ORG worked to obtain new contracts where possible, and provided the client with detailed service contract and billing information which the client used to identify and eliminate high-cost services.
Results:
Houston Methodist Hospital telecom costs were reduced by $1.6 million per year.
SAVINGS PER MONTH – $134,356.32
ANNUALIZED SAVINGS – $1,612,275.84
REFUNDS – $368,197.53
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