With recent fluctuations in critical IT and accounting staff, it was deemed the current telecommunications environment was not well documented. With a primary hospital and nine remote clinics included in the topology, the billing definitions made it very difficult to update the documentation.
- Across the hospital and clinics, the customer received over 60 invoices each month from several telecom carriers.
- Since the bills were entered into their accounting system, they were paid each month with limited knowledge of their accuracy.
- Many of the individual bills were originally sent to remote clinics and then forwarded to centralized accounts payable often receiving late payment charges due to delays in transfer.
- There was little knowledge of the individual service contractual obligations and the carriers were slow in responding to direct requests.
- When service issues arose, restoration was often delayed tracking down the correct services and respective carriers to contact.
- Many organizational changes were expected over the next few years and the customer had very limited resources to manage the change.
Considering the tedious nature of gathering bills, it was recommended all telecom invoices be collected over a two month period. After entering them into the payment systems, the bills were set aside for review. Orion worked with the customer and the respective carriers to provide the following deliverables.
- A complete inventory of services for each clinic including circuit IDs, telephone numbers, features and contractual obligations.
- A secondary document was provided detailing the current monthly costs for each of the bills.
- Recommendations were made by Orion to adjust monthly costs and provide on-going savings.
With these deliverables in hand, Orion was able to work with the customer to achieve the following results:
- It was determined after previous upgrades to data and Internet services, the replaced services were never disconnected even though there was communications to the carriers to discontinue the services.
- Many of the services were out of contract resulting in much higher monthly costs.
- Some of the invoices did not reflect the tax exempt status of the customer. Orion was able to remove these costs and obtain credits for up to two years of these costs.
- Long distance services were spread across many providers and at various rate plans. Orion aggregated all of the charges under a single plan significantly reducing costs and simplifying billing.
- After carefully reviewing the inventory of services and working with the customer and a third party cabling company, it was determined there were 70 analog lines across the enterprise that could be disconnected. This included some sites the customer no longer occupied.
- Overall, the customer was able to reduce their monthly telecom costs from $44,000 to $29,000 per month or a 34% reduction. Based on the services expected to be disconnected, taxes and other over billings, the customer also received almost $35,000 in credits.
- Once the changes had been made, Orion provided a final inventory of all the services across the enterprise to help manage future change and confirm bill payments.
- A system was implemented to trigger six month notifications of pending contract expirations to alert the customer of the status allowing enough time to consider options.
- Invoices were eliminated or aggregated to reduce the bill quantities each month from 60 to 7. On line systems were also implemented to further reduce monthly payments. Bills were no longer sent to remote clinics.
- Orion Communications provided on-going telecom support to ensure future orders were managed effectively and the inventory was updated accordingly.
What was originally considered an insurmountable task by the customer was completed by Orion in less than six months. Not only did the customer receive significant monthly cost savings combined with unexpected credits, but they also received a working document to further manage change. Some of the savings was utilized to fund much needed bandwidth upgrades, but the majority went to their bottom line.