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Case Studies

HMS Saves Non-Profit Continuing Care Retirement Community More Than $440,000

Presbyterian Villages of Michigan (PVM), headquartered in Southfield, MI, is a faith-based, non-profit, multi-site system that has served seniors of all faiths since 1945. PVM currently has 24 senior living communities including continuing care retirement communities (apartments, assisted living and skilled nursing all on one campus), subsidized senior housing and market rate senior housing.  PVM partnered with HMS – Healthcare Margin Specialists to help them improve operating margins. Our Detroit, MI and Dallas, TX based principals joint ventured on this successful engagement. By working closely with the client’s staff and using procurement best practices such as: employing a competitive bid process and consolidating vendors where possible, HMS reviewed approximately $2,514,500 of annual spend and helped generate more than $440,000 in annual cost savings from both incumbent and alternative suppliers. Much of the savings was delivered about eight weeks after the beginning of the engagement. 

The most significant savings were realized in the following areas:

$180,000 in pharmacy savings
$74,000 in corporate office lease savings
$67,500 savings on medical supplies
$47,153 savings on security guard services
$44,815 savings on grounds maintenance
$31,666 savings on office supplies

Don House, Vice President of Finance for PVM who was very pleased with HMS work, had this to say: 

Your work has been diligent and complete. We couldn’t be happier with your methodology and recommendations. We have observed firsthand the research you do as you examined our spending and interviewed key stakeholders prior to making any recommendations. The combination of using your rich database of discounted market pricing and subject matter experts have all worked together to save our organization significant costs.


HMS Saves Non-Profit Continuing Care Retirement Community More Than $110,000

United Methodist Retirement Communities (UMRC), which has been serving the people of Michigan for over a century, is a non-profit; faith based continuing care retirement community in Chelsea, MI. UMRC wanted to significantly reduce their operating expenses and they turned to the professionals at HMS – Healthcare Margin Specialists to help them achieve their goal. Our Detroit, MI and Dallas, TX based principals reviewed UMRC’s spending history and developed a plan to negotiate, implement and measure margin improvements. By working closely with the client’s staff and using procurement best practices such as: contract review and improvement, employing a competitive bid process, and consolidating vendors where possible, HMS reviewed $1,447,536 of annual spend and helped generate more than $110,000 in annual cost savings. These savings came from both incumbent and alternative suppliers, with the majority of the savings being delivered about eight weeks after the beginning of the engagement.

The most significant savings were realized in the following areas:

$40,000 in Medicare Part B short term rehab costs
$17,053 savings on medical supplies
$15,591 savings on office supplies
$11,061 savings on janitorial supplies
$9,524   savings on imaging diagnostic services

In addition to the savings achieved, HMS also discovered a Medicare billing error that spanned multiple years. HMS worked to get this billing error corrected, which resulted in more than $15,000 in over-payments being refunded to UMRC.


Linda Stephens, who does Inventory Control for UMRC, had this to say:

When we started this project, I didn’t have any reason not to trust you but as a purchasing professional with responsibilities to UMRC, I needed to verify the savings you delivered.  To that end, I was very pleased with the thorough, transparent, and easy-to-understand reporting that you delivered. I would be happy to recommend HMS to any organization that wishes to reduce expenses while also working with a partner that truly has their clients’ best interest at heart.