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Case Study: CPS

Multi-Site Portfolio Saves $183K in First Year of Partnership with CPS

Providence Life Services

Positive Outcomes

  • Communities saved $183,800, primarily in food and beverage, in their first year of working with CPS
  • Potential to save more through additional opportunities identified by CPS in facilities/plant operations, clinical programs, commercial building services, technology, and capital projects. While some experience greater savings, on average CPS members realize cost savings between 8-12%.

 

Our Approach

Providence Life Services, which has senior living communities in Illinois, Indiana and Michigan, has saved $183,800 in its first year of partnering with Care Purchasing Services (CPS).

CPS membership is free, with no obligation or minimum purchasing requirement. Communities that work with CPS are assigned a dedicated Client Account Manager (CAM).

Their CAM plays a vital role in finding ways to improve the community’s financial performance through more than 300 strategic vendor partnerships, including food service, medical supplies, therapy, pharmacy, facilities and plant operations, property maintenance services–and more.

When asked in early discussions what their communities used for certain products, Providence Life’s team expressed their desire for standardization across their four communities in Illinois.

While Providence Life was already using five vendors through DSSI for maintenance, food and beverage and medical supplies, they didn’t have any standardized purchases or recommended products in place. And they weren’t getting the full savings advantages that CPS group purchasing offers. 

Providence Life was working with the following CPS vendors:

By partnering with CPS, Providence Life achieved easy savings–now and in the future–with vendors they were already using. 

 

The Challenge

Providence Life’s portfolio spans four senior living communities in Indiana, Illinois and Michigan, including retirement housing, assisted living, memory care and skilled nursing. Their communities are designed to provide the right amenities, activities and continuing care enabling seniors to live their best lives.

In partnering with CPS, Providence Life wanted to balance cost savings with organization and standardization across their community portfolio.

Although Providence Life was using a CPS vendor for food service, CPS recognized Sysco offered better pricing and worked with the food and beverage director to ensure he saw the value in that new partnership.  

 

The Solution

Switching to Sysco resulted in major savings!

The F&B team from CPS assisted Providence Life with rebates, cost-savings analyses and processes to maximize savings without compromising quality. This resulted in an 11% savings, including rebates and incentives. This percentage represents $183,800 in savings for the four communities—all within the first year of their partnership with CPS.

Because of CPS’ expertise, Providence Life is expected to save hundreds of thousands more in the coming year.

During the quarterly business review process in Q1 of 2024, CPS identified additional cost-savings opportunities in:

 

In 2024, CPS has identified and implemented new programs for Providence Life, which include: 

Food & Beverage

Environmental Services

  • Medtegrity Linen
    • Mickey’s Linen (Dining / Kitchen)
    • MedClean (Housekeeping / Healthcare)

Plant Operations

  • Titan Energy
    • New electricity contracts for the corporate office and two communities
    • New natural gas contracts for three communities
  • Utility Refund Agency
    • Total state refund of $25,893 for two communities
    • Total ongoing monthly savings between $550-$750

CPS has also identified additional cost-saving opportunities for Providence Life in 2024/2025, which include:

Facilities Operations and Maintenance Vendors

  • Flooring
  • Elevators
  • Staffing
  • Pest control
  • Roofing
  • Landscaping

 

Medical Equipment

Commercial Building Services

 

Technology

  • TV / Phone / Internet
  • Computer hardware
  • Resident / Staff communication

 

Capital Projects

  • Building renovations and repairs
  • Room turns

 

Administrative Services

  • Business cards / Name badges
  • Logo-branded merchandise and supplies
  • Interior / Exterior signage

 

About CPS

CPS offers programs to thousands of group purchasing members across senior living communities nationwide. Membership is free, with no obligations and no minimum purchasing requirements. We leverage our national purchasing power to deliver exceptional value and significant savings to our members.

Not a member and ready to learn more? Contact us today to request your free savings assessment!

Already a member? Contact your CPS team today.