Cutting Practice Costs for Telecommunications Services

The following article was published in the Atlanta Hospital News in December, 2008 By Jeffry M. Finkel Choosing the right telecommunications services and equipment is crucial for healthcare practices in terms of controlling costs and increasing practice efficiency. They are fundamental in facilitating effective communication between staff, patients, and others with whom the practice interacts. Purchasing appropriate services and equipment at the right price, and educating employees on proper use, helps practices achieve a positive return-on-investment as well as improve patient care. The purpose of this article is to help you achieve these goals. Background: A practice’s telecommunications program is comprised of services and equipment. Major services include: Local Long distance Cellular High-speed (internet) Voicemail Answering services Services are billed monthly. Vendors offer services on a month-to-month or contract basis. Practices may earn discounts by signing contracts. Major equipment includes: Phone systems Wiring Cellular phones Ancillary equipment like headsets and speaker phones Routers Equipment may be purchased or leased. Practices typically incur maintenance costs. The factors involved in selecting telecommunications vendors and their respective services and equipment are too complex for one article. This article focuses on services; next month’s article will focus on equipment. How Vendors Charge For Telecommunications Services: Charges are billed monthly and are based on factors including: number of phone lines, line features (e.g., call forwarding, call waiting), domestic and international long distance, high-speed access (DSL, cable, or T-1), cellular service, voicemail, and inside wiring maintenance. Common additional fees include 411 calls, directory advertising, 911 services, state and federal charges, and taxes. Monthly Costs May Be Higher Than Necessary: There are myriad reasons why practices might pay more for services than necessary. Telephone bills and contracts are difficult to understand. Practices often pay bills without checking for accuracy. Practices may contract for more services than they really need. Practices may not take advantage of technology which might lower costs (e.g., using voicemail rather than an attendant to take messages, fax-to-email service). Is Your Practice Spending Money Unnecessarily? Here are several examples: Are you paying for more phone lines than is necessary? Are you paying for unneeded features (e.g., call waiting on an alarm line, long distance plan on an incoming fax line)? Have you overlooked negotiating for discounts? Do you buy higher internet speed than you need? Do you buy unnecessary inside wiring coverage? Do you buy more cellular minutes each month than you need or buy too few minutes and incur high per-minute overage charges as a result? If you have multiple cell phone users, are they enrolled in individual rather than shared plans? Are you overpaying for your answering service? Tips for Lowering Telecommunications Costs: Many practices buy more services (i.e., lines and features) than they need. Determine what services are essential in supporting your practice’s needs. Then eliminate unnecessary services. Take advantage of discounts. Many vendors offer them for signing long-term contracts and/or for bundling services. Some contracts are as short as 12 months. Purchase only as much internet speed and capacity as you really need. Limit 411 information calls. Save as much as $1.50 per call by using websites such as www.Switchboard.com or www.anywho.com to obtain numbers. Check bills carefully for accuracy every month. Immediately request credits or refunds for overcharges, and ensure that the vendor fixes billing errors before the next bill is issued. Purchase services only from reputable companies that provide prompt repair service. Buying services at deep discounts from a company whose repair time is slow enough to impact practice efficiency may be “penny wise and pound foolish”. Look for next month’s article on reducing telecommunications equipment costs. For additional money saving tips, e-mail me at Jeff@OverheadReductionServices.com, sign up on my website at www.OverheadReductionServices.com, or call (404) 995-9112. Jeffry Finkel is the President and owner of Overhead Reduction Services.