Reducing Telecom Spend for Major Healthcare System by Over 35%

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case study

Optimizing Telecom Spend for Franciscan Missionaries of Our Lady Health System (FMOLHS)

Client

Franciscan Missionaries of Our Lady Health System (FMOLHS) is one of the largest healthcare providers in the region, delivering care to nearly half of Louisiana and serving Mississippi’s largest metropolitan area in Jackson. With a network that includes four main hospitals and over 400 clinics and offices, FMOLHS operates with a workforce of approximately 18,000 employees. As a major healthcare provider, efficient and cost-effective network infrastructure is critical to ensuring seamless communication, patient care, and overall operational success.

Challenge

FMOLHS’s initial goal was to gain a clearer understanding of their total telecom-related expenses across their entire health system. Their IT leadership recognized that many clinics had independently procured internet and voice services without centralized oversight. This led to a fragmented approach where individual clinics were managing their own telecom expenses, making it difficult for IT to have full visibility and control over network costs and infrastructure.

Upon engaging with FMOLHS, LAVA identified additional challenges, including:

  • A lack of centralized management for telecom services across hospitals and clinics
  • Discrepancies in service providers and contract terms
  • Higher-than-expected telecom spending across multiple facilities
  • The need for a consolidated, strategic approach to network and voice services

Solution

To address these challenges, LAVA implemented its Network Spend Optimization (NSO) service, providing FMOLHS with a comprehensive audit and analysis of their telecom expenses. This process involved:

  • Identifying all active telecom services, contracts, and providers within FMOLHS
  • Assessing current costs and negotiating better pricing with vendors
  • Highlighting inefficiencies and redundant services
  • Developing a strategy to streamline network management and cost allocation

Throughout the project, LAVA worked closely with key stakeholders at FMOLHS, including:

  • Will Landry – CIO
  • Chris Newsom – CTO
  • Chris Hare – Network & Voice Manager
  • Sam Short – IT Network Architect
  • Various IT personnel from each hospital and clinic
 

During this process, LAVA uncovered significant insights, including the presence of multiple ISPs and different network technologies across various locations. These findings provided FMOLHS with the data necessary to optimize their telecom expenditures and transition toward a more unified, efficient infrastructure.

Results and Impact

The impact of LAVA’s Network Spend Optimization was substantial:

  • Cost Savings: FMOLHS achieved a 35% reduction in overall telecom expenses, resulting in seven-figure total savings.
  • Enhanced Network Visibility: FMOLHS now has a much more comprehensive understanding of their telecom infrastructure, enabling better management and decision-making.
  • Technological Advancements: FMOLHS is now exploring Network as a Service (NaaS) solutions with a partner to implement a more robust SD-WAN/SASE strategy for enhanced security, efficiency, and ISP footprint management.
  • Future-Proofing IT Infrastructure: With a clearer telecom strategy in place, FMOLHS is positioned to transition away from outdated services and towards scalable, cost-effective network solutions.
 

Following the success of the initial engagement, FMOLHS has expanded their partnership with LAVA by enrolling in LAVA’s newest service offering, Awesome as a Service. Additionally, LAVA is now assisting FMOLHS in disconnecting obsolete services as new infrastructure solutions are deployed.

Conclusion

By leveraging LAVA’s expertise, FMOLHS has been able to navigate the complexities of telecom cost management and position itself for future technological growth. The partnership has not only resulted in significant financial savings but also set the foundation for a more strategic and managed network infrastructure. As FMOLHS continues to evolve, LAVA remains a trusted partner in their journey toward operational efficiency and technological excellence.

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LAVA helps enterprise business leaders evaluate the global market of all things As a Service and Managed Service Solutions. We examine customers current environments and ways we can advance their technologies while reducing cost and complexity along the way. We are the CIO's most Trusted Advisor.

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