Three Companies that Will Investigate Overcharges
Free audits in Key Non-Labor Expense Areas Stop Cost Creep & Uncover Unexpected Savings.
Senior Living SMART has entered into partnerships with three companies offering a “shared savings” model to senior living operators looking to reverse climbing costs and improve expense management. The model works by offering thorough analysis of contracts and invoices to identify variances, overcharges (and pursue reimbursements) and opportunities to better control costs that in the past have been accepted as “fixed”. With this model, the auditing company retains a percentage of the savings as their fee and the operator retains the remainder of the money saved.
“By partnering with a variety of proven vendors, suppliers and consultants, Senior Living SMART helps operators cut costs and create efficiencies on everything from food and energy, to utilities,” reports Seniors Housing Business News.
Here are the companies included in the shared savings model:
One Management Solution has been selected to audit raw food, paper good, supplies and energy costs, savings operators and average of 8 – 12% on food and 5 – 15% on energy in the 20 deregulated states.
“That service alone is something that’s new to the industry,” says Aaron D’Costa, director of acquisitions for Virtus Real Estate Capital. “It’s not something from an operational perspective that an operator has time to focus on.”
Limitless Technology specializes in telecom expense management, billing optimization; shared savings based auditing, and strategic technology consultation.
“We found that we had been spending about $270,000 annually on phones, Internet, and cable. As a result of the audit we saved $83,220,” says Tom Boler, the VP of Finance at Regency Senior Living when he initiated a telecom audit with Limitless Technology. “The breakdown of this savings by area was 37% reduction on cable, 29% on land lines and 27% on cell phones for a combined savings of 30%.”
SLM, Facility Solutions Nationwide specializes in the total management of a company’s waste stream. Their free analysis of locations and specific waste management needs, paired with their practical solutions, results in guaranteed savings, frequently over 20% of typical facility costs in the first year alone. They improve operational efficiencies by performing monthly vendor invoice audits to ensure accuracy of invoicing, and serve as a single point of contact, managing various vendors for multiple services.
“By leveraging the power of their national footprint (15,000 locations), and through bi-annual bidding of services to their partner vendors (over 12,000), SLM can assure that Senior Living SMART members receive the most competitive rates,“ says Deborah Howard, CEO of Senior Living SMART.
For more information on the benefits of Senior Living SMART membership including a list of partners and services available visit http://seniorlivingsmart.com/partner-directory/.
“Our members are looking for solutions to reduce operational expenses in areas that do not impact their residents and that motivated us to create this shared savings suite of services,” explains Howard. “Operators need to free up dollars to improve cash flow, fund upgrades in physical plant, technology, systems and marketing so this is a win-win for everyone.”