Free Articles  >>  Business And Finance >>  Page 714  >> 

A Cost Reduction Plan That Saved an Assisted Living Facility 15

Cost reduction plans examine an organization's operations and find ways to reduce the cost of doing day-to-day business. Instead of making one-time cuts in budgets or salaries, cost reduction plans create continuous improvements and efficiencies that ultimately contribute positively to a company's bottom line, for many years to come.

An assisted living facility recently hired a third-party cost containment firm to closely examine their operations. Everything from cleaning supplies to vendor relationships was analyzed by the cost containment firm, and the results were astounding. After the firm completed its analysis, the assisted living facility achieved a cost reduction of 15% annually.

The organization is a non-profit system with 25 communities including assisted living, senior apartments, and skilled nursing facilities. Cost reduction for such a widespread organization required a detailed look at not only the company's overall financial operations, but many of the individual locations day-to-day business as well. With nearly 700 employees and annual revenue of $55 million, the organization knew efficiencies could be found, but they were hidden among hundreds of activities that kept the business running. Without a subject matter expert to closely examine every outgoing cost, large scale cost reduction would be nearly impossible. So, the senior care organization turned to the cost containment to fully implement an across-the-board cost reduction assessment and cost containment plan.

First, the cost reduction firm examined a breakdown of the assisted living facility's day-to-day operations. To reduce costs, the firm looked for key vendors the assisted living facility interacted with regularly. Many significant areas were identified as possible cost savings opportunities, which the cost reduction firm would then closely analyze. They identified key areas like their corporate office lease, medical supplies, janitorial supplies, security services, laundry services, grounds maintenance, waste management, and more.

The next step for the firm to take was to review their findings on possible opportunities with the client, and discuss the best way to move forward. The firm then began obtaining quotes from new vendors and negotiating with current vendors, leveraging the strength of the established relationship to find a price point that would work for the vendor but also that would reduce costs for the assisted living facility.

These are a few of the areas where the firm found substantial savings for the assisted living community.

Item Annual Savings Corporate Office Lease $74,000 Medical Supplies $71,000 Janitorial Supplies $25,947 Security Services $23,717 Grounds Maintenance $22,072

Total annual savings amounted to nearly $265,000.

Taking an in-depth look at the financial operations of an organization can be a daunting task. But by hiring a third-party cost containment firm, the company can gain a wealth of knowledge while positively impacting the bottom line. Just as hiring a cost containment firm proved to be beneficial for this assisted living facility, seeking professional help in cost reduction can help any organization achieve long term success.

About Author Miles Lee :

Alliance Cost Containment is a national service firm that reduces the indirect operating expenses for mid-sized businesses and organizations within a wide range of industries. ACC delivers to its clients measurable cost reduction and operational efficiencies in over 30 common expense categories. Find out more about Alliance Cost Containment at <a href="" target="_blank"></a> .

Article Source:
Article Url:

Article Added on Sunday, June 16, 2013
Other Articles by Miles Lee

An Expense Reduction Campaign That Saved a Nonprofit Organization 300 000
An Expense Reduction Campaign That Saved a Nonprofit Organization $300,000 Expense reduction is beneficial to any type of business, including not-for-profit organizations. A well-known nonprofit fitness and wellness organization, dedicated to meeting the needs of the communities it serves through offering an affordable and safe workout facility and community center, realized that it desperately needed to cut expenses and overhead. Every dollar makes a difference, especially to a nonprofit...

How an Expense Reduction Plan Saved an Airport Thousands of Dollars
Expense reduction can be done for any sized business, even ones that most people don't think of. For a business that sells goods, some methods of cost reduction are obvious. Of course it makes sense that by re-negotiating service provider agreements and improving the efficiency of operations, a firm can save money. But what about organizations that provide services or infrastructure, like transportation? Can these companies benefit just as much from adopting an expense reduction plan? Of...

Expense Reduction Made Easy for Small Business Owners
Expense reduction is never easy for small business owners. They have managed their costs throughout their growth cycle, keeping an eye on every dollar they spend, and looking for ways to do things as cost-effectively as possible. So how can they continue find places to make cuts? On a yearly, or even quarterly, basis, many companies assess budgets and make difficult decisions about where to spend and where to cut back. Small businesses, which typically have smaller margins than larger...

Expense Reduction Hurdle The Job Will Become Harder
One expense reduction hurdle many outside consultants face is the fear that the job will become harder with the added burden of monitoring expenses. CFOs have hectic, high-pressure jobs, and as a natural function of an executive level position, they often have their attention pulled in competing directions. Many items -- like vendor contracts, bi-weekly payroll or quarterly budgets, just to name a few -- can take attention away from continuous expense reduction. As a result of the CFO's...

Expense Reduction For Government Agencies
Expense reduction can be a difficult task, especially if it needs to be done on an ongoing basis. Chief financial officers of government agencies often have a very difficult task when it comes to expense reduction. Not only must they handle the daily financial operations of the organization, but they must also determine the best way to reduce expenses. Expense reduction in government agencies often take the form of yearly or quarterly budget cuts. But expense reduction should not be based on...

3 Expense Reduction Tips for the 4th Quarter
Expense reduction is often a big headache during the fourth quarter for many organizations. The company is planning for the upcoming year, examining the budget, trying to determine sales goals, and more - all while staying on top of your company's current needs. For the vendors who serve you, price increases typically happen at the beginning of the next calendar year. Forming an alliance with a cost containment firm now, and containing costs in the fourth quarter any beyond, is integral to...

Cost Reduction Plans Should Focus on Travel and Lodging
Some cost reduction plans often avoid dealing with travel and lodging, because they can be difficult to achieve. Even though travel costs rank as a top five controllable expense for many companies, most firms don't have the purchasing power to reduce costs in a way that significantly impacts their bottom line. There may be membership programs and websites that will help individuals find the most competitive price offered for a particular one-time flight or hotel stay, but it is often more...

Expense Reduction Tactic Outsource IT Functions
One expense reduction strategy that large companies employ is the outsourcing of their information technology (IT) functions. As IT needs become more complex, and require bigger capabilities, some companies are finding it is beneficial to hire an outside IT company for expense reduction, rather than hiring multiple IT professionals within the company. Depending on the company size, multiple IT personnel are often necessary in order to meet the needs of the business, or often entire...

Expense Reduction Challenge is Resistance to Change
Driving meaningful improvements in expense reduction can be challenging, especially if company employees view expense reduction as a one-time exercise. For expense reduction to truly have long-term effects, significant steps must be taken that may impact some of your employees' work processes. For example, one significant way financial executives can drive long-term expense reduction is to focus on improving efficiencies and subsequently lowering the cost of normal operations. If process...

How Expense Reduction Can Help Small Businesses
Implementing an expense reduction effort during a slow economic recovery like this can be especially difficult. Businesses of all sizes are trying to find new ways to keep costs down, but feel they have run out of their best options. They are trying many different ways to save money, whether that means making cuts, freezing budgets, or other similar measures. However, most companies have reached the point where they need to think outside the box in order to truly impact their bottom line....

Click here to see More Articles by Miles Lee
Publishers / Webmasters
Article ID: 434092
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

186 Users Online!!
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Cheap Reseller Hosting Provided By AwareIndia

Company IDS