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Administrative Services Case Study:
Health Care
Solutions at Work
AmeriNet:
November 1999
The Challenge
Senior Administrators at Ohio Valley Medical
Center (OVMC) wanted to reduce overall
telecommunications costs for its three health
facilities, while simultaneously upgrading telephone
systems software and equipment.
Ohio Valley Medical Center is located in
Wheeling, W.Va. In addition to Ohio Valley, the
health system includes Peterson Hospital, also
located in Wheeling, and East Ohio Regional
Hospital, located across the river in Martins Ferry,
Ohio. In 1998, lightning struck and disable the
microwave unit used to link data and telephone
services for East Ohio Regional and the two Wheeling
facilities. The incident served as the catalyst and
opportunity for OVMC to find a way to lower
telecommunications costs, which were approximately
$500,000 per year.
The Solution
On the suggestion of David Baranik, CFO, Ohio
Valley Medical Center, Marjorie Mathieu-Simon,
Associate Administrator at the facility, referenced
the AmeriNet Administrative Services Executive
Compendium to find Jim Rigsby & Associates, and
independent consulting firm specializing in
telecommunications. Jim Rigsby & Associates is one
of more than 100 health management service
agreements in AmeriNet's Administrative Services
portfolio, designed to help members reduce costs,
create new sources of revenue and enhance quality
initiatives.
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"We were
able to get more and better equipment at
half the cost of our previous system."
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Mathieu-Simon |
"Jim Rigsby & Associates completed a very
comprehensive telecommunications analysis
for us. It included a survey of what was
found, and a set of recommendations of what
we could do," Mathieu-Simon said. Of the
nine recommendations made, it was decided
that five would be implemented. |
These included:
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Replacing the microwave
transmission unit with a fiber optic network to
link the three campuses.
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Upgrading the telephone systems
wit the newest level of software and processor.
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Re-negotiating long distance
services for better rates.
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Processing local calls over a
software-defined network.
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Creating a position of Telecom
Manager to manage all telecommunications.
Jim Rigsby, President, Jim Rigsby &
Associates, said the recommendations and
implementations were done only after extensive data
collection. "Pete Lupica, a senior partner, and I
spent 60 days among the three campuses interviewing
the department heads, the decision makers, and all
the vendors involved. We wrote a very detailed
report detailing our findings and recommendations;
and also gave capital and operation budgets,
timeframes, and personnel requirements." Mr. Rigsby
said.
The
Outcome
Ohio Valley Medical Center has
already saved money on long distance and local toll
charges. As the five projects are completed, total
savings are expected to increase dramatically.
Prior to starting the project, annual costs for all
telecommunications services at Ohio Valley Medical
Center exceeded $500,000. When the projects are
completed, cost estimates for telecommunications are
expected to be only about $250,000, a 50 percent
savings. Any initial investment for such upgrades
as the fiber optic networks are expected to pay for
themselves in very little time.
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"Jim Rigsby &
Associates has more than met our
expectations."
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Mathieu-Simon |
Rigsby commented that results are what
matter most with telecommunications. "The
bottom line is Ohio Valley Medical Center
now has a transparent operation for voice
and data that is truly state-of-the-art;
and, they are managing telecom proactively.
Most importantly, however, is they have done
it by cutting their operating expenses in
half." |
"We were able to get more and better
equipment at half the cost of t our previous system"
Matheiu-Simon said. "The new fiber optic system
will give us 10 times the capacity we need right
now, but it positions us for the future. We'll also
have the capacity to link our information services
system with our voice system. Jim Rigsby &
Associates and the AmeriNet administrative services
program has more than met our expectations."
FOr more information regarding Jim
Rigsby & Associates, call 330-492-1535 or contact
your AmeriNet shareholder:
| Ameri Net Central |
Robert E. Hardy |
(724) 772-7274 |
| Intermountain
Health Care |
Travis D. Lloyd |
(801) 442-2809 |
| Vector |
Jack Malaquias |
(401) 453-8354 |
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