A hospital facility was experiencing a significant increase in waste and recycling expenses. Arbitrarily, additional charges such as fuel surcharges, landfill charges and franchise taxes appeared on their monthly invoices over the course of 28 months. The waste hauler asserted that these additional charges were necessary to cover their overhead and could not be avoided. These spiraling costs made it impossible for the hospital to budget and control costs.
Waste & Recycling
The hospital personnel made several attempts to mitigate these costs by conducting several cost and market analysis on their waste disposal fees. They realized after spending several months on a review, they lacked the time and expertise to conduct an accurate, effective audit. Ultimately, they yielded no improvement or cost reduction.
Most waste hauler overcharges are hard for a customer to identify because they are hidden in “the details” of the Service Agreement and monthly invoices. After a six month review and audit of their waste handling storage and transportation services, our firm identified significant opportunities to reduce waste and recycling expenses immediately. By securing lower rates for pick-up, bin replacement,and price per ton, we were able to reduce their monthly expenses by 37% or $92,400 annually. After conducting a retroactive audit of their past charges, we identified several overcharges and errors. Over the course of a 28 month period, the hospital was being overcharged $2,734 per month, resulting in a refund of $76,552 and an additional annual savings of $32,808.