Healthcare Case Studies

Healthcare Case Studies

Centralized Category Ownership and Drove 12% Savings

Client Profile

$2.5B global diagnostics service provider to both consumers and healthcare professionals

Client’s Issue

The client, who was highly decentralized and fragmented due to rapid growth through acquisition, was spending $37MM on temporary labor with over 70 agencies. It identified the need to implement a Managed Services Provider (MSP) and Vendor Management System (VMS) in an effort to centralize temporary labor ownership and better manage temporary labor demand and spend across the many independent functioning business units and locations.

Our Approach

The client brought in KGM Strategy Group to facilitate a competitive RFP process to identify both an MSP and the supporting VMS online tool. In order to begin realizing savings prior to the MSP launch date, ISG conducted a second competitive RFP process and negotiated reduced rates with about 40 incumbent vendors. This allowed the client to capture immediate savings with the temporary labor agencies while allowing the MSP to fully implement and capture longer-term hard and soft-dollar savings.

Category Ownership
and Drove 12% Savings

Savings Included

  • Reduced recruited markups
  • Reduced payrolled markups
  • Discounted long-term markups
  • Compressed wage rates
  • Discounted overtime multipliers
  • Shorter no-cost conversion timeline

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