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Case Study: Replacing a Healthcare IT Company's Inefficient SOW Practice

Assembly_line_gears_turning_yoh_blogAll politics and policies aside, the healthcare industry is having a bit of a moment. A huge supplier of jobs and for many, a supplier of life-altering outcomes, the industry has become more critical than ever as access to it has grown since the inception of the Affordable Care Act. Each year, $8,600 is spent per capita on healthcare in the United States alone. In order to keep up with the demand of patients while still providing high quality care, many in the industry are adding new technological capabilities to make patient tracking and data management easier and better than ever. With this, some vendor tracking itself can tend to get out of hand.

This was the case with one leader in the industry who had to completely re-evaluate their current Statement of Work (SOW) process because leaders had lost their way. There was little to no insight into spending and no efficiencies were being made. When they needed this done (and done right), they called in Yoh to ease the pain and revitalize the current vendor management processes.

And as always, Yoh was there in a heartbeat to do the job.


The Dilemma

The healthcare giant’s SOW practices were becoming tangled, unclear and costing the company money. The company’s current SOW process was poorly managed and lacked any visibility or insights into spending, sourcing, and performance metrics. As a company that helps healthcare companies improve the health of millions, there is zero room for error and a complete overhaul was needed.

Yoh saw the “vital signs” of the client’s SOW program – what is the spend, where is it going, what are the performance metrics, and how are they being paid – were failing and began to develop a new SOW process with all vendors to bring the client back to life.


The Strategy

Yoh experts rolled up their sleeves and did their own version of scrubbing in before the project took off. As problems continued to unravel, Yoh developed and introduced a SOW program that completely transformed old, outdated, manual process into a fully automated one, delivering previously unheard of visibility, savings and performance insights. Prior to the personalized SOW pilot program Yoh introduced, there were no defined policies, no sourcing mechanisms or tools, and not nearly enough competitive sourcing. Yoh wanted to leadership to have a crystal clear look into the SOWs and all of the transactions. There was no surprise in the results, Yoh did just that.


The Impact

Just 40 in-person vendor meetings and 18 months later, Yoh successfully launched the client’s comprehensive SOW program. Yoh diagnosed the client with a clunky, disorganized process and treated it with a completely automated system. Now, managers have visibility and control over spend and approval chains at a moment’s notice when before it would either take days to find out or, most often, never at all. Procurement was removed from daily tactical SOW set up, approval and PO request process, and is now free to focus on more strategic responsibilities. In summary, our agile team brought back visibility, consistency, compliance, change management processes, and tracking and cost management to all future SOWs. Supporting $12 million in active managed projects is just another day at Yoh.

Thanks to Yoh, this healthcare IT company had the right prescription for success. Find out more here.


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