Case Study: Large Regional Healthcare System achieves US$1.7 million in construction and contract cost savings with Protiviti

Protiviti helps large regional healthcare system save US$1.7 million in construction and contract costs

Large Regional Healthcare System (annual operating revenue US$520 million) engaged Protiviti to perform a construction audit of a US$50 million facilities refurbishment ahead of a planned US$175 million hospital expansion. The organization asked Protiviti’s Capital Projects & Contracts practice to conduct a detailed contract compliance review, using testing and data analytics to identify contract risks and areas for potential negotiation.

Protiviti’s audit found that certain cost items were being calculated as percentages of direct costs, effectively creating double mark‑ups. After Protiviti presented its findings, the client challenged the contractor’s calculations, the contractor amended the contract and agreed to apply the revised pricing to the US$175 million expansion—an estimated US$1.2 million savings—while continued Protiviti audit support produced an additional US$500,000 savings on contractor‑controlled insurance, for a total impact of US$1.7 million.