Healthcare is a dynamic segment of the marketplace and potentially will benefit the most from services provided by the textile rental industry. As hospitals experience the pressure to cut costs, the textile rental industry solves the problem by providing hygienically clean linen at affordable prices. Currently, 35% of hospitals use these services.
The healthcare market includes hospitals, medical and dental offices, outpatient surgical, acute and subacute care facilities, public health clinics, nursing homes, assisted-living facilities, and home care. According to the American Hospital Association, the U.S. healthcare market comprises 6,600 hospitals that operate 1.16 million beds; 16,600 nursing homes serving 1.5 million residents; 65,000 assisted-living facilities with 1 million residents; and 3,000 adult daycare centers. The healthcare industry employs more than 10 million people, including 2 million nurses, 650,000 doctors and 150,000 dentists. By 2005, more than 2 million new jobs will be created.
Today, more hospital and healthcare facility administrators are outsourcing linen and laundry services to textile rental companies because they find that on-premise laundries (OPLs) are not cost-effective to operate. These administrators are also making an environmentally safe decision by using linens (e.g. gowns, towels, and incontinent care products) that are reusable, as opposed to disposable products.
Top Seven Reasons to Use Healthcare Linen Rental Service
CONVENIENCE
Textile rental service companies deliver fresh, hygienically clean healthcare linen rental items on a regular schedule that customers can rely on (e.g., bed linen, towels, gowns, etc.).
QUALITY
Textile experts specify the best fabrics and construction for each application — textiles that will perform well with repeated use. Textile rental plants launder the merchandise to the highest standards to maintain softness, comfort, absorbance and barrier protection.
APPEARANCE
Quality purchasing and processing results in textiles that meet exacting customer standards. Not only is the merchandise sparkling clean and well finished, but whites are bright and sets of colored items are of the same hue.
CLEANLINESS
Textile rental plants process all merchandise to ensure it is nonallergenic and hygienically clean. Textile rental operators satisfy the needs of even the most discerning hospitals, nursing homes, and medical clinics.
SAFETY
The textile rental industry is a leader when it comes to satisfying the increasingly complex and demanding standards set by OSHA for employee protection. Every uniform and textile item is designed to perform its designated function in a safe, effective manner.
SAVINGS
Textile rental customers need not invest capital expenses on equipment or merchandise. Their costs can be carefully budgeted, closely monitored, and expensed against operations. There are no financial "surprises" with textile rental services. Furthermore, customers need little space to store merchandise because it is replenished regularly.
IMAGE
Customers' employees receive uniforms in the styles and colors that impart a professional look. In an age when healthcare facilities are in competition for the same customers, image is critical. Also, staff that has a consistent look promotes a sense of professionalism and competence.
Top Ten Costs of an OPL
Some or all of these costs
may be saved by outsourcing laundry services:
Laundry Production Payroll
Payroll costs for wages paid to hourly employees who handle linen, including laundry production, soiled sort, washroom, flatwork, ironing, tumble dry operation, etc.
Management Payroll
Employees who handle linen inspection; linen control; janitorial services; machinery repairs and maintenance; and internal linen distribution.
Employee Benefits
Includes payment of social security, workers compensation, holidays, one-or-two week vacations, state unemployment (varies), health insurance (varies), union contributions, etc.
Laundry Chemicals
All detergents, alkalis, bleach, sour, fabric softener, bacteriostatic agents, starch, etc.
Maintenance, Repair, and Parts Costs
Includes all machine repair parts, lubricants, drive belts, iron pads and covers, tools, boiler treatment and water softener salt.
Utilities
Gas, electricity, fuel oil and water account for a large part of expenses.
Taxes, Licenses & Permits
Taxes, licenses and operating permits paid by the facility and allocated to laundry operations.
Equipment Costs
Equipment experiences wear every time it is operated. Replacement costs must be considered.
Insurance / Other Business Expenses
Insurance, lease charges, safety expenses, uniforms, training, and other expenses allocated to the OPL.
- Lost Opportunity Costs
The space occupied by the laundering equipment could be used to house a revenue-producing facility such as a physical therapy or day care center (adult or child). An existing program or department within the facility also could expand into the available space, such as a new MRI Center, resulting in an increase in revenues from that department. The space could even be leased out to groups of physicians as office space.
Sources: Managerial Financial Management, Phillips & Associates,©1996; Textile Rental Services Association
