Health System’s IT Operating Costs Analyzed, 18.6% Reduction of Spend Uncovered

Situation

The CIO of a newly formed health system engaged AArete to assist with their organizational goal to reduce their annual recurring operating expense on IT. This system resulted from a merger of two leading healthcare networks, which is now the largest provider in their state. AArete was challenged to align disparate contracts across the new system, while simultaneously driving out costs.

Approach

Using our considerable experience and market intelligence with vendor pricing and contracting, AArete evaluated opportunities to reduce unit cost, as well as right-size utilization, licensing, and maintenance costs.

Results

AArete negotiated on behalf of the client with incumbent vendors and reduced annual recurring operating expenses with little to no disruption to workflow, end-users, or vendor service levels. This resulted in $3.7M annual savings with a 18.6% reduction of spend.