Standardizing Language Services Across a Large Health System
Enhancements in service quality, the selected supplier was projected to drive a 36% reduction in annual spend.
The Challenge
The two financial components to a remote language or interpretations services program are the services and the hardware used for remote interpretation. Services are typically billed on a per minute basis while hardware can be provided by the interpretation services provider or purchased outright by the hospital. Our client had multiple providers across the health system with various financial models in place. One supplier was providing hardware in exchange for a commitment to a monthly minimum amount of interpretation minutes, which was typically higher than the actual volumes needed by the system resulting in significantly increased costs
Solutions
Our clinical purchased service consultants formed a system-wide, cross functional evaluation committee including representation from end users, risk, IT, finance, and supply chain to participate in a competitive request for proposal process. Suppliers providing services across the system were evaluated for organizational capability, interpretation quality, service delivery, and financial model.
Results
The evaluation committee selected the supplier that offered the most competitive comprehensive proposal. In addition to enhancements in service quality, the selected supplier was projected to drive a 36% reduction in annual spend by eliminating monthly minimums and reducing service rates.
Key Takeaways
Look beyond the numbers
Taking a comprehensive approach to evaluating suppliers, including qualitative aspects in addition to the financial offering, encourages selection of the best supplier for the system. Having a high-quality supplier increases end user compliance rather than resorting to off-contract suppliers to meet needs.
Evaluate full scope of costs
When reviewing a service with multiple cost components, it is important to evaluate the total program costs. For example, investing in hardware upfront may be a better financial deal than committing to monthly minimums that exceed actual usage.
Engage early
Involving key stakeholders in the evaluation and selection process gives a sense of responsibility to participants, increasing the chances of a successful adoption and reducing the need for approvals after making a final selection. Ensuring the priorities of various functional teams are considered up front creates a pathway to a selection that meets the needs of the entire organization.
