Communicating With The Public Case study #7 created by; Nicole smith

Working at the hospital in the linen room, I had to deal with every aspect of ordering for the hospital and delivering linen to each floor. The hospital was considered our customer because it was an outsourced company. Several times a month the linen was at a shortage on all deliveries. The customer (hospital) had numerous complaints about linen shortage and some floors weren't getting enough linen for daily usage. What do you think is the appropriate answer to the situation?

Outsourcing Linen Can Bring Significant Savings

  • As healthcare reimbursements decline and costs increase, I have observed that many healthcare organizations can achieve significant savings by partnering with a linen expert and outsourcing their service. This article outlines key factors to consider if your organization is evaluating the pros and cons of outsourcing laundry operations.

Know Your True Cost Of Linen

  • Many healthcare organizations do an excellent job of processing linen in-house. But is an on-premise laundry cost effective to operate? Each organization is unique, but to determine how cost effective your laundry operations are, step one is to gather cost data on the following:
  • Labor and benefits (management and hourly),
  • Administrative and overhead costs,
  • Taxes. licenses and permits,
  • Capital expenditures on equipment and machinery,
  • Maintenance and engineering expertise,
  • Chemicals for laundering,
  • Purchase of linens and garments,
  • Utilities (water, electricity, gas), and
  • Insurance.
  • In some cases, it may be difficult to secure all of this data. But gather what you can. Or begin collecting this data for three to six months. This will give you a good benchmark when comparing outsource options.

The Decision Is Individual

  • My goal has been to outline key factors to consider when evaluating the cost effectiveness of processing linen in house. Because each organization is different in size and the type of laundry it operates, the decision to outsource is an individual one. Only you can determine if outsourcing linen service is an opportunity to secure cost savings.
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Created By
Nicole Smith
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