Author: Harper Dion
Posted Date: June 13, 2023
In the era of subscription services, it’s not uncommon to forget the countless number of underused subscriptions for which one is paying. At the end of every month, many people are shocked to see the vast amount of money spent on subscription services that are neglected. Unsurprisingly, this situation, and lack of awareness, is common beyond day-to-day life. Underutilization of contracted services leads to improperly allocated funds and monetary bleeding.
It's an issue we see often within the post-acute space. Specifically, agencies misallocate funds into the millions on underutilized, underappreciated, or completely neglected vendor contracts. “Countless agencies within the industry overspend on third-party services quarter after quarter,” said Hunter Sorensen, Vendor Partner Manager at Maxwell Healthcare Associates. “Agencies, not unlike you and me, tend to lose track of subscriptions, bleeding money without even noticing a problem exists.” Although this is usually accidental, stemming from negligence or undereducation on the full spectrum of tools said contracts can offer; trimming unneeded vendor services, and reallocating the funds to other areas with increased ROI is essential to optimize your agency's financial success in the coming quarters.
In the post-acute space, smaller workforces already struggle to complete backend tasks while remaining optimized. Within this space, there is essentially a disconnect between client-facing employees and management. This disconnect makes it increasingly difficult to communicate about third-party vendor services that are used on a day-to-day basis. Management isn’t on the ground floor experiencing everyday operations where many times a paid service or vendor suite is underused or completely ignored.
In addition to this disconnect and lack of employee time, the unawareness of this issue strips agencies of the resources needed to take a comprehensive look at underutilized services with severely underperforming ROI. Misallocation, underutilization, and general lack of awareness not only bleeds money but further misallocates dollars that could be consolidated to channels with exponentially higher opportunity for ROI.
Oftentimes this issue is invisible in agencies. The answer lies in third-party assistance. Luckily, MHA is here to help reevaluate your subscriptions and find opportunities for increased ROI. Our suite of assessments already covers back-office operations, EMR, and chain of resources. Through the work we have done with the vendor partner program, we use our own vetting to culminate an idea of how an agency’s vendor utilization should function. Our team would look at how much money you’re spending compared to believed ROI. From there, we would conduct field interviews to get a clear picture of actual day-to-day utilization. With this assessment we essentially act as a mediator, evaluating all your subscriptions and finding underperforming ones to cut. The result is less financial bleed each quarter. With this excess capital, we can provide recommendations for new subscriptions or consolidations that will drive both productivity and ROI to unseen heights.
Achieving increased ROI while trimming unneeded services is possible, and with third-party help, it can happen rapidly. A report from MHA acts as a financial review of subscription dollars spent, providing a comprehensive overview of areas of waste and opportunities for substitution and improvement. If you’d like to learn more or are interested in an overhaul of your agency’s vendor utilization, contact our vendor partner representative at [email protected], or visit us at www.maxwellhca.com.