Mercy Memorial Hospital (MMH) is a 239 bed full service community hospital located in Monroe Michigan. MMH was two years into a five-year information technology outsourcing agreement that they wanted to extend and renegotiate to modify the pricing model and update Service Level Agreements (SLA).

Copperwood Group Services

MMH retained the Copperwood Group to assist with the contract renegotiations with their outsourcing partner with a specific emphasis on restructured pricing and Service Level Agreements,. The Copperwood Group provided a team of integrated legal and outsourcing advisors to review the existing agreement, resolve financial issues between MMH and the outsourcer and lead negotiations on the new agreement.

The Copperwood Group continues to provide quarterly audit services including reviews of SLA performance, project resource utilization and pricing changes.

Results

Copperwood Group completed contract negotiations with the outsourcer. The pricing approach was modified so that MMH had more control over the amount and timing of expenditures and SLAs were strengthened and structured to meet MMH's specific requirements. The outsourcing governance model was enhanced to reduce the risk for future misunderstandings with the outsourcer.

Mercy Memorial Comments

• "The Copperwood Group effectively translated the hospital objectives for the outsourcer and made sure that they were encompassed in our new agreement. Because of their experience, The Copperwood Group was able to assess the economic impact of modifying the pricing approach. Our new pricing approach kept outsourcing affordable, expanded the outsourcer's commitment to provide services and increased our control. I would strongly advocate that any hospital that is considering IT outsourcing hire experienced advisors to guide them through the outsourcing procurement process and contract negotiation. Our money was well spent with The Copperwood Group."

  Mark Rossman, Chief Financial Officer

• "The Copperwood Group had the experience, skills and capability to lead the contract negotiation. They were able to establish a pace for the discussions that enabled us to maintain our focus on our day-to-day responsibilities and get the new agreement done in a reasonable timeframe."

  Saundra Stark, Corporate Compliance Director

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