A Case Study in Practice Management Cost Savings

 Our client is a large multi-specialty group including Family Practice, Internal Medicine, Pediatrics, OB/GYN, Pulmonary , Oncology, Ophthalmology and Surgery. In 1998, client brought their Information Services in house and implemented a four year growth plan adding specialties in Cardiology, Endocrinology, ENT, Neurology, Podiatry, Rheumatology, Urology, Hospitalists,


Imaging

Centers, Research, Urgent Care, and Anticoagulation Management.

Today, this client is one of the largest independent practice groups in

North Carolina . In fact, they are one of the largest in the Southeast. This is the result of a lot of hard work, strong leadership, and the right management philosophy. Client’s philosophy is to focus simultaneously on four key areas; financial health, employee relations, community needs, and patient service.

Although our client had very talented and experienced administration and staff, they faced similar issues as other practice groups. Their costs were increasing, provider reimbursements were declining and the growth had strained their infrastructure including their telecommunication systems. Their Chief Financial Officer, realized that costs needed to be contained and reduced for the financial health of the company. Their

Management Team began to explore ways to achieve those objectives.

Sidney Grant, founder of Grant & Grant, L.L.C. discussed possible opportunities and strategies to reduce cost without sacrificing product or service. Client’s management also challenged Grant & Grant to ensure that their administration and healthcare providers maintain autonomy for choice of products and vendors. This meant not changing products and maintaining relationships with key vendors, while reducing vendor costs but increasing service levels. Grant & Grant was asked to also seek opportunities for increased efficiencies.   

Grant & Grant began to evaluate the client’s needs. Immediately, it was clear that the client needed to update their telephone system. Unfortunately, there was not budget appropriated for this project. Additionally, telecommunication expenses were growing considerable. Grant & Grant worked with our client’s Information Services, Finance, and their communications vendor to upgrade their system, reduce their cost and to provide data in an electronic format. The net result was a new communications system that not only exceeded their requirements but that paid for itself while reducing their phone expenses by over $50,000 annually!

This project was so successful that the client’s Information Services and Grant & Grant continued to work together on various projects such as contract negotiations and renewals with key vendors and mediation of disputes with service providers. Grant & Grant also assisted their Information Services in strategic planning.

Grant & Grant continued to address the greater need for cost reduction with the client’s purchasing and finance departments. This required negotiating agreements with multiple vendors supplying a range of products from Medical and Radiological supplies to paper, office supplies and wireless communications. Through negotiating with fewer than 5 vendors and with minimal changes, Grant & Grant was able to reduce our client’s expenses by over $300,000 annually.

Our client’s Chairman of the Board noted “our association with Grant & Grant not only reduces our expenses but also allows our employees to focus on their core responsibilities of providing excellent patient care and support.”

This client views Grant & Grant as an adjunct member of their team. The Practice’s Chief Financial Officer states that “Grant & Grant is always willing to assist us in seeking efficiencies and methods to reduce our expenses. Our relationship has and continues to be very beneficial to everyone. Grant & Grant continues to serve us and to exceed our expectations. Our relationship has been especially beneficial because Grant & Grant’s fees are contingent upon actual savings. Therefore we do not incur any additional costs for their services. We share in our joint success. I can recommend them without reservation to assist others wanting to enhance their margins through expense reductions.”