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