CASE STUDY

TRANSCRIPTION SERVICES

PRIVATE AND CONFIDENTIAL

SSM Health Care • Based in St. Louis, Missouri • 18 facilities in 4 states • $200 million in purchased

services spend • Over 85 unique outsourced

services

IDENTIFIED ANNUAL SAVINGS

$2.6 MILLION

CASE STUDY

SITUATION COURSE OF ACTION RESOLUTION

SSM Health Care Transcription Opportunity

• M*Modal transcription provider

• Healthcare advisor involved

• Little guidance, results and identified savings

• Lack of visibility, in-house knowledge and go-forward process

• No centralized approach to purchased services

• Opportunity to create a sustainable solution

• Contract and historical data review

• Consolidate contracts in online dashboard

• Deliver an online analytics, workflow management and learning platform

• Value analysis-based solution

• Current state of spend summary

• Specific SSM prices compared against M*Modal benchmarks

• Redline contracts with go-forward recommendations

• Identified $667,892 per year initially

• Savings have grown to $2.6 million per year by adding more facilities at locked in rates

PRIVATE AND CONFIDENTIAL

SITUATION

• Incumbent transcription provider

• Some, not all, facilities covered under existing contract agreement

• Domestic and offshore services

• Wanted to revise the agreement with M*Modal to:

• Add new modules

• Move offshore services to domestic

• Consolidate all facilities under one agreement

• Hired an advisor to perform contract review

1 2 3

• Advisor evaluated purchased services, paid little attention to transcription

• Results:

• Little guidance on how to achieve savings and manage process

• Process continued with no results

PRIVATE AND CONFIDENTIAL

COURSE OF ACTION value analysis-based solution

Visibility into SSM’ purchased services spend

Gain knowledge across all purchased services categories

Identify immediate outsourcing projects (e.g. transcription)

Online tools to centralize, monitor, manage and

measure purchased services

Online Management Tool with Knowledge Library Deep Dive into Historical and Contract

Transcription Data

RESOLUTION

• Initially identified $667,892 in annual savings

• Savings have grown to $2.6 million

• 28% reduction in contract cost

• Moved offshore to domestic services

• Consolidated all facilities under one agreement

• Option to negotiate contract at year-end to capture decreasing transcription costs

• 98% accuracy guarantee with penalties with SLAs are not met

• Reduced contract length to industry standard

Executive Summary and Recommendations

Savings Summary

Contract Redline

KNOWN SPEND (SSM estimate)

$2M

ACTUAL SPEND (after MDB review)

$2.4M

MDB uncovered $400,000

in unaccounted for transcription spend

MDB identified $667,456

in annual savings

CONTRACTED SPEND (revised contract)

$1.7M