Case Study

A natural gas vendor was charging this hospital the wrong tariff rates – inflating their spend by nearly $50,000 a year.

Healthcare
Utilities

Key Findings

Annual Spend
$209,374
1-Year Savings
$108,174
3-Year Savings
$207,196
Annual Savings
24%

A 241-bed hospital in the Northeast was paying over $200,000 each year for utilities – significantly more than other hospitals in their area.

When this 241-bed, Northeast hospital brought TCVG in to review their natural gas spending, they had no idea why they were paying so much compared to their counterparts. We conducted a review of twelve months worth of natural gas, water and sewer invoices to determine what the hospital had in place and how their vendors were billing them for all of their services.

Incorrect tariff rates and unnoticed billing errors were costing this hospital a fortune.

We found $58,528 of billing errors on the prior three years' utility spend. On top of that, we discovered that the utility company was charging the hospital the wrong tariff rate on a number of accounts – accounting for an extra $49,646 each year.

We changed the hospital's rate plans and eliminated the billing errors.

Upon client approval, we worked with the vendor to change the hospital's rate plan (decreasing their spend by 24% annually). We also demonstrated each billing error to the vendor and secured a one-time credit for the full amount of $58,528.

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