The Link between Eliminating Waste and Auditing Your Expenses
There’s little doubt that the healthcare industry is in store for some serious upheaval in the coming months.
While we may not know now what changes will occur, eliminating waste within healthcare has been top-of-mind for most organizations. Our clients tell us that not only are they looking at ways to increase revenue but at reducing expenses as well.
You audit revenue, but do you audit expenses?
Most hospitals regularly conduct revenue cycle audits to make sure they’re getting accurately reimbursed for their services. Despite the fact that this process takes a lot of time and effort, most organizations recognize this is essential to making sure they can make your profit targets especially in today’s market where hospital profit margins average 3%.
So, you hire a revenue cycle auditor to detect revenue leakage. But what about your expenses?
Expenses leak too.
As we face uncertainty about the future of healthcare in America, it is critical now more than ever to audit expenses.
Telecom – cellular, internet, landlines and data network services – is typically one of your top 3 expenses. Many organizations aren’t aware that they’re paying more than necessary.
Without an independent auditor who is an expert in telecom billing, it is difficult to detect expense leakage. You don’t know what you don’t know.
One hospital discovered they were spending $22,000 more per month than needed.
During one audit, we saved one hospital two-thirds of their telecom bill by discovering that all their contracts had expired without their knowledge. This hospital paid rack rate for a year, spending around $22,000 per month more than necessary. Our client knew contracts would have given them better rates but were too busy with other mission-critical projects to take action.
Organizations don’t know what they don’t know. With resources stretched paper-thin, it is not uncommon for expenses to be unmanaged and have that fact go undetected. Just as you tighten up your revenue stream with an audit, you should eliminate waste with an expense audit – especially in your top expenses.
Contact us for a no-cost, no-obligation assessment and eliminate wasteful telecom expenses!