Case Study: BMI Healthcare saves energy and reduces costs

The private health care provider BMI had to reduce the number of its water cooler suppliers to one sole supplier providing standardised equipment and consistent service throughout their 65 hospitals in the UK. They needed to reduce overall expenditure on their water cooler contract, reduce energy consumption and avoid the risk of infection by sourcing the correct specification of equipment.

The Thirst Link team has a strong collective of expertise in healthcare, education, leisure, B&I and retail so we were able to provide BMI with the ideal platform by which to achieve these objectives, as well as assisting the client in identifying further cost savings and efficiencies, such as centralised invoicing and MI reporting.

Contractual information for 27 incumbent suppliers was collated. Gathering this type of information from so many sites and suppliers can be difficult and time consuming, therefore we used proven strategies to determine who the suppliers were, when their contracts expired and the cost of terminating contracts which had 6 months or more to run until expiry.

We provided the expertise and resources to ensure the tendering process went smoothly, after which the client chose a preferred supplier based on the quality of their tender response, presentation, equipment (specific to avoiding the risk of infection)  and their overall commercial offer.

Thirst Link  was “the link” between the nominated supplier, the hospitals and incumbent suppliers throughout the entire six week implementation plan, saving the client a considerable amount of time and expense, and final negotiations were conducted by us to reduce the termination costs of existing contracts.

Energy usage alone was reduced by over 40% per annum. This was achieved by the nominated supplier using energy efficient equipment which had energy saving devices such as a direct chill system that only chills water on demand.  In addition to the energy savings, an average of 15% cost savings per annum over the five year contract was achieved.

Centralised invoicing was implemented resulting in 65 hospitals being relinquished from having to verify and sign off separate invoices. Management Information reports are now issued to the client every month including an updated asset register of equipment, service reports, scheduled filter changes and sanitisation of water coolers.