Delivering Immediate Cost Savings and Improved IT Service for a World-Renowned Medical Center

The process of establishing vendor partnerships can be taxing, especially for enterprise companies. It’s why many organizations sign long-term contracts that tie them to a legacy partner for five, 10, or 15 years or longer after an exhaustive request for proposal (RFP) process and final vendor selection. Unfortunately, the relationship doesn’t always evolve in tandem with business needs, expectations, or technology. The once-happy marriage might culminate in divorce.

This was the situation for a globally recognized and respected medical center. The international health system, which has more than 200 locations and 65,000 caregivers worldwide, sought to pivot from a 5-year-old IT services contract. Lack of flexibility and drifting expectations on both sides of the agreement put the organization at odds with its vendor. Faced with the decision to issue an RFP, the medical center engaged Windsor Group to ensure its next suitor was capable of delivering services above and beyond the current standard.

The challenge

With the old service agreement in place, there was virtually no flexibility built into the statement of work (SOW). The IT vendor, locked into a substandard rate, was forced to nickel-and-dime the medical center to make the contract worthwhile. This led to a perception of poor service and support, which prompted the healthcare organization’s decision to issue an RFP. It also meant reevaluating their IT needs — a task the organization wasn’t knowledgeable or confident approaching.

To complicate matters, the medical center needed to conserve costs. It was forced to operate at a loss during the COVID-19 pandemic. Confronted with the prospect of going to market with demands of “better service at a lower cost,” the organization needed a way to thoroughly evaluate potential partners while maximizing the value of a new service contract. Not sure where to begin, the medical center engaged Windsor Group to level the playing field for the vendor selection process.

Engagement

Windsor Group thoroughly assessed the current needs of the healthcare organization independent of its current IT services contract. This included a discovery process to learn more about the organization’s culture and expectations for the caregiver experience. Windsor Group then defined a request for service (RFS) for vendors to bid against rather than a traditional RFP. This strategy resulted in solutions-driven proposals instead of strictly service-based bids.

Sensitive to the medical center’s current challenges, Windsor Group also worked with key stakeholders in the selection committee to coach them on how to evaluate the nuts and bolts of new bids beyond cost and service offerings. This evaluation included identifying alternative service delivery models.

During the vendor selection process, Windsor Group served as a critical mediator to help facilitate a harmonious agreement between the healthcare organization and its new partner. This involved pinpointing disagreements in contract language, facilitating discussions, and brokering healthy compromises.

Results

After an 18-month process — nine months of RFS/RFP bid evaluations and nine months of negotiations — Windsor Group helped the medical center confidently secure a new IT services contract. The new agreement is structured both to meet current needs and evolve over time to prevent the headaches of another antiquated, inflexible contract.

Not only is the healthcare organization seeing an improved level of service, but it enjoyed immediate annual cost savings of 17% over its old contract. Perhaps even more powerful, the organization benefitted from extensive evaluation, which led to a new operating model — one based on a combination of IT expectations and a re-imagined caregiver experience.

Insights

Many companies are content with a legacy vendor simply because the process of replacing the vendor is time-intensive and resource-consuming. When they decide to solicit bids, businesses often make the mistake of issuing an RFP instead of an RFS. The difference bears weight on the eventual contract that’s drawn up — one rooted in service delivery rather than solution implementation. Partnership selection must be a product of mutual understanding with a mind for flexibility over time.

To learn how Windsor Group can help your organization with your needs, connect with us today at windzr.com/contact-us.