Expense Management

Knowledge CenterHenry Ford Health System

Henry Ford Health System

Health system achieves time and dollar savings with an integrated TEM solution

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Henry Ford Health System

Industry:

Healthcare

Solutions:

Expense Management
Mobility Management
Call Accounting

Background

Founded in 1915 by auto pioneer Henry Ford and with more than 30,000 employees, Henry Ford Health System is the fifth-largest employer in metro Detroit. The organization is comprised of hospitals, medical centers and one of the nation’s largest group practices, the Henry Ford Medical Group, which includes more than 1,200 physicians practicing in over 40 specialties.

Challenges

The leading healthcare provider determined it needed better visibility and control over its telecom environment. In an effort to accomplish these objectives, they hired a local TEM (Telecom Expense Management) supplier to assist them in managing their environment. While the initial program focused specifically on wireline telecom services, the organization soon realized the solution was not meeting their needs. Among the issues encountered:

  • Invoices were not being validated back to contracts
  • Difficulty in producing meaningful telecom reports
  • Lack of call accounting solution

To worsen matters, when the organization decided to incorporate wireless telecom services, the solution was unable to handle the new wireless reporting needs. That left the health system’s staff to spend countless hours producing information and reports outside of the tool, using spreadsheets as their primary reporting vehicle.

When the company realized they needed a fully integrated call accounting and wireline / wireless TEM solution, they searched for a new TEM provider that would satisfy these requirements and found Calero’s integrated expense management solution.

Solution

Using Calero’s software and managed services, the organization immediately realized a positive impact. They were able to generate substantial financial savings and implement streamlined processes, freeing up staff to concentrate on other mission-critical activities for the organization. Prior to that, the company produced cost allocation chargeback reports manually, but this entire process is now fully automated.

As Henry Ford states, “We achieved significant financial savings across our telecom environment. We are no longer performing time-consuming and error-prone activities through spreadsheets which saved us a significant amount of time.”

During the first year of the program, Henry Ford achieved $1.5 million in telecom savings. Six years into the program, savings have exceeded $4 million.

Among the Results So Far

  • Inventory built / system up and running in two months (wireline and wireless)
  • Implemented an integrated call accounting solution, processing data across 30,000 stations and 14 different locations.
  • Replaced laborious manual spreadsheet processes with automated management and reporting tools
  • Initial wireless optimization savings of $160,000
  • Voice network optimization annual savings of $250,000
  • Total 1st-year wireline savings of $900,000
  • Total 1st-year wireless savings of $600,000

During the first year of the program, the organization achieved $1.5 million in telecom savings, improved processes, and continues to receive responsive, customer-centric support and services from Calero. The network telecom director shared, “The team has been exceedingly responsive to requests and issues. They have been nothing short of outstanding in being able to respond in a timely manner.”

Ongoing hard savings into the 6th year exceeded $4 million, not to mention the savings resulting from automation and process improvement.

Fixed and mobile costs in healthcare can be a source of great waste, but also a prime area for savings. Having the right technology to manage voice, data and mobile effectively and affordably is the prescription for savings!