South Florida Hospital News
Sunday April 11, 2021

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December 2014 - Volume 11 - Issue 6

Telecom Audits & TEM Software – The 1-2 Punch for Hospital Telecom Expense Management

Telecom audits for hospitals generally focus on reducing costs in four main areas. These areas are the most likely places auditors find waste or inefficiencies. The key to maintaining the optimizations found in a telecom audit is to continue to monitor the carriers with TEM software.
Here are the four main areas hospitals will find significant savings in an audit:
1. Monthly Recurring Charges (MRCs)
The MRCs determine the base rate on your standard telecom and IT related bills. These are what you spend every month for the services you need, or think you need, and have ordered whether you use them or not.
2. Telecom Overage Charges
Overage charges are what you spend in addition to the base rate for the services provided by a telecom provider. This can include minute or data usage and text messaging services.
3. Third Party Billing
Third party billing is when another agency uses the telecom provider as a billing agent to charge for separate services. These fees tend to be hidden, and often you’re not even using them.
4. Unused Features
Unused features are the added services that have been forgotten about. Most telecom providers encourage you to buy features at the beginning of a contract in order to maximize the standard offering of a particular product. These features are often forgotten about, adding to your organization’s bottom line expense.
We worked with a Regional Medical Center in Georgia that was able to save $324,000 annually without a vendor change!
In order to monitor your carriers after the audit, it is a best practice for hospitals to implement TEM software.
A good TEM software will provide you the opportunity to monitor your wireless and wireline spending independently. We recommend separate monitoring because wireless and wireline telecom typically have different billing issues.
Your wireless spending needs to be monitored for optimization opportunities and your wireline invoices need to be monitored for billing errors.
Implementing this 1-2 punch of a thorough telecom audit, followed by TEM monitoring will ensure your hospital saves as much as possible and maintains that savings over the course of your entire contract.
Ken Reda, Managing Partner, Profit Advisory Group, leads the Operations & Audit teams at PAG. You can download PAG’s newest resource – Telecom Expense Management for Hospitals – at
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