| The Business
Case for VoIP Value of VoIP resonates with Long Island medical group Level 3 implementation cuts communications costs by 40 percent BY AL SENIA [RAD-INFO note: June 2005 Level(3) is closing its IP Centrex offering, (3)Tone, and going back to just selling pipes - being a carrier's carrier. Apparently, it was too much overhead to sell through resellers to the end-user. L3 signed up 300 resellers of their (3) Tone product, including SBC.] The rest of the story from the electronic edition of America's Network When Stefanie Bruemmer, the IT director for Queens Long Island Medical Group (QLIMG) in suburban New York, decided it was time to replace the legacy Avaya PBX system with new techno-ogy, she was looking to cut costs and minimize the capital outlay for replacement hardware. "I was looking to reduce monthly expenses," Bruemmer explains. "Originally, we weren't considering a VoIP solution." However, after reviewing proposals for replacement equipment, Bruemmer realized a Level 3 Communications solution would save significant financial outlays, reduce monthly communications expenses and provide a variety of scaleable and flexible features for the 21-facility, physician-owned medical group. "At first, I was a little concerned about the quality," Bruemmer admits. But a pilot implementation at two of the medical group's facilities, including the corporate headquarters in Garden City, N.Y. where she is based, convinced her that VoIP was highly reliable. Another key benefit was that Level 3's system ran on an open architecture, so that she could add a PBX or other phone equipment from virtually any vendor in future years if she so desires. "That's what really sold it," says Bruemmer, who successfully lobbied the purchase through her hospital group's chief executive and chief financial officer. "We couldn't find a reason not to buy Level 3." FULL SERVICE VOIP QLIMG started its search for a replacement phone system in December 2003. The two pilot installations involving 120 Internet phones went live in mid-August. The entire installation is planned to be completed at all 21 of the company's medical facilities on Oct. 29. Although still in its prototype phase, VoIP appears to be delivering clear benefits. Unlike some other VoIP business customers, the medical group will use its system to communicate not just among internal staff, but for everyday interaction with thousands of outside customers. In fact, the various VoIP calling features allow the medical group to handle in-patient telephone calls more efficiently. Patient calls are seamlessly transferred among the different facilities. Previously, patients had to hang up and dial different facilities separately if a health care provider was on the move or a referral was made. Bruemmer estimates the VoIP implementation will reduce monthly communications costs by 40%, since three existing voice and data networks are being folded into the one Level 3 backbone. The only capital outlay involves some $400,000 spent on Cisco 7960 IP phones. Replacing the legacy phone system with a new PBX would have cost as much as $2 million, Bruemmer estimates. QLIMG pays a monthly fee to Level 3 for the hosted voice and data services based on a per-seat use, but that is significantly less than the medical group was spending on its legacy system. Bruemmer says another side benefit of the VoIP system's flexibility allows QLIMG to set up one call center to handle calls for all its facilities, instead of maintaining a separate receptionist at each one. "We hadn't planned on this, but we are hoping it will save us some money because the call center can handle the service calls for all of our patients," says Bruemmer. Level 3 is touting the QLIMG deal as one of the industry's largest VoIP business installations to date. "They did not want to own another legacy hardware system and they were ready for new technology," says Oliver Davis, vice president of product marketing for Level 3's voice group. "They've realized significant cost savings and been able to use the system to deliver an enhanced level of patient care. We believe they'll be able to exceed their initial (ROI) target." PARTNER PROGRAM Davis adds that the a local value-added reseller, IP Business Solutions (IPBS), played a critical role in providing the Level 3 backbone solution to the customer and is responsible for installation, training and support. Level 3 has made a much larger commitment to service providers in the VoIP space since January. It now has 75 authorized channel partners, including VARs, systems integrators and RBOCs, according to Davis. The goal is to authorize 300 partners within a year. "The VoIP market is getting more vertically oriented as it matures," notes Davis. The centerpiece of the QLIMG implementation, which will encompass 1,500 doctors, nurses and other health professionals working with the medical group across a three-county region, is Level 3's (3)Tone Business Service, which delivers local and long distance voice, as well as data, over a hosted network. Sylantro Systems Corp. software applications are an integral part of the solution, which is hosted by Level 3 on Sun Solaris servers. The network will connect all 21 QLIMG office locations and remote employees. It allows for inter-company 4-digit dialing, call forwarding voicemail access and other features. "This has allowed us to converge our voice and data networks and to use many more voice features," says Bruemmer. "We're very pleased with what we've seen." Inside Sources Project: Queens Long Island Medical Group (QLIMG), a health care provider in business since 1991 with 21 facilities on suburban Long Island, N.Y., needed to replace a legacy PBX telephone system with new technology. Stefanie Bruemmer, director of IT, sought to minimize the overall capital outlay, while reducing monthly costs and enhancing phone features and the overall customer experience. Market Execution: The medical group put out bids in Dec. 2003. It soon realized a VoIP solution could meet its criteria. Two competing systems were evaluated. By spring, it chose local VAR IP Business Solutions to install a Level 3 (3) Tone Business solution, which provides for converged VoIP voice and data networks among all medical facilities in a three-county region. Initial implementation at two facilities in August, including the Garden City, N.Y. corporate headquarters, proved highly successful. Final installation is planned for late October. Business Case: Bruemmer estimates overall communications costs have been reduced by 40%. Initial costs were limited to Internet telephony equipment. Monthly fees are lower than they were with the legacy PBXs that would have cost $2 million to replace. Features like call transfer allow QLIMG to set up a central call center, further reducing costs. The system is also more convenient for call-in patients, because they can be easily transferred to other health network locations. The solution uses open standards, so other phone equipment can be easily added if needed. Our Read: The VoIP implementation appears to be successful with substantial cost savings realized. Customer service has been improved. Initial costs were low. Involvement of a local telecom VAR helped insure smooth installation. The rest of the story from the electronic edition of America's Network |
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