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Expense reduction efforts net $400,000 for medical group

Client profile:

  • 130 physicians
  • 650 employees
  • 65 practice locations


A mid-sized physician-owned medical group struggled to keep a consistent purchasing philosophy for large volume products. At each location, buyers were influenced by their preferred vendors and the purchasing preferences of a large affiliate hospital. The group engaged Silverback to help address these conflicting decisions and inefficiencies to realize improved expense reduction.


Silverback examined $3 million across many of the practice group’s non-labor expense categories. The team collected data from vendors without interrupting the client’s staff and daily operation. Current expenses were benchmarked and cross-referenced with our nation-wide database. We then met with both current and prospective vendors and negotiated contracts. The final recommendation delivered an extensive analysis of vendor proposals and identified opportunities for sustainable savings in several major categories.


  • 11% saved on medical malpractice insurance
  • 13% cost savings on medical supplies
  • 23% cost savings on office supplies
  • 43% savings on payroll processing
  • 77% savings in telecommunications

Silverback reduced the client’s annual expenses by over $400,000. The team achieved savings without any cost to the client, and many of the expense reduction strategies did not require a change in vendors.




Payroll Processing


Medical Supplies


Malpractice Insurance

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