Laundry: The 'Fastest Growing Outsourced Service'

 Laundry management may be the next focus area for materials managers to cut back on supply chain costs, according to a Healthcare Finance News report.

Between two and three percent of a hospital's budget goes toward linen services, but some hospitals, like UPMC in Pittsburgh, have slashed that number down to less than one percent, partly by renting their linens, according to the report.

Joey Dickson, assistant vice president of strategic sourcing at healthcare purchasing group HealthTrust, said in the report outsourcing linens may be the most cost-effective, sensible decision.

"There is a significant budget impact for those healthcare facilities that manage their own laundry service," Mr. Dickson said in the report, noting the additional costs of utilities, labor and buying efficient equipment. "Laundry service is probably the fastest growing outsourced service in healthcare facilities."

More Articles on Supply Chain Costs:

Johnson & Johnson, Medtronic Enter Pilot Program for More Efficient Supply Chain Ordering
To Buy or Not to Buy? Purchasing Decisions in the Clinical Lab
Purchased Services Present Opportunity for Significant Savings on Operating Budgets


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