US Healthcare Management company saves $1.5m through Procurement Excellence

US Healthcare Management company saves $1.5m through Procurement Excellence

US Healthcare Management company saves $1.5m through Procurement Excellence



Our client, works with more than 300 clients including Federal, state, and local governments, providing health-focused solutions to optimize care outcomes and reduce costs. They partner with US government sponsored healthcare programs across the county to support their mission of providing efficient, high quality and well-coordinated care to the vulnerable populations they serve.

With 14 offices across the US and employing over 1,100 employees, our objective was to reduce costs through procurement excellence, targeting savings on company overheads but also on the costs of healthcare services which could then be passed on the end customer.



An initial Spend Analysis and Opportunity Assessment identified 14 workstreams, both overhead and direct healthcare and clinical services.

Following executive approval, a 9-month programme of Procurement Cost Reduction including multiple approaches including strategic vendor negotiation, competitive sourcing, benchmarking, and vendor consolidation.

Supply market analysis, benchmarking, and vendor surveying for Clinical & Medical areas.

In-depth modelling and market testing for an Outsource vs. Insource analysis for Recruitment.

Category Initiative Savings
Clinical & Medical EAP Counselors, Nurse Line, Physician Peer Reviewers 9.2%
HR Recruitment, Temporary Labor 19.6%
IT Hardware, Services, Software, Telecom 11.2%
Professional Services Translation Services 37.7%
Office Services Print, Supplies 26.6%


  • $1.5M in savings delivery through a 9-month program of procurement cost reduction.
  • Significant consolidation of vendor base and subcontractors, especially for HR and Clinical & Medical.
  • Establishment of contracts—which were previously lacking—with improved pricing and terms.
  • Positioned to be more competitive with clients, especially on government contracts.



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