Fleet Management Case Study
Managed vehicle program saves Forrest General Hospital $600,000 after implementing a fleet management program.
Location: Hattiesburg, MS
Industry: Home Health Care and Hospice
Total vehicles: 101 vehicles
With the growth of the home health and hospice division of Forrest General Hospital, employee mileage reimbursement had increased to 1.9M business miles per year. Reimbursing employees at the IRS rate of $0.55/mile resulted in a $1.045MM reimbursement cost. Employees operating personal vehicles created an inconsistent image for the company and safety concerns.
Forrest General was balancing continued growth with rising vehicle reimbursement costs. By partnering with Enterprise Fleet Management on a managed fleet solution, immediate cost savings of $0.20/mile were realized. Employees driving 12,000 or more business miles per year were provided a 2015 Nissan and the total operating cost for the Sentra has been approximately $0.35/mile.
“The decision to switch to leasing vehicles from mileage reimbursement demonstrates that it is possible to significantly reduce our operating expenses while offering our staff the benefits of safe and reliable transportation.”Melita Miller
Overall operating costs were reduced through Full Maintenance, Physical Damage and Fuel programs.
Enterprise was able to provide Forrest General with a comprehensive vehicle management program, saving the company over $600,000 in one year. In addition to the tremendous cost savings, employee morale and driver productivity has increased. Also, Forrest General vehicles have become a well-recognized staple in South Mississippi.