Supply chain tip of the week: Choosing the right waste management model

As medical waste service providers increasingly insist on hospitals moving to an integrated waste stream pricing model, hospitals should consider implications that can arise from this practice, according to Eric Slimp, manager of purchased services for MD Buyline.

He shared the following tip with Becker's Hospital Review.

"While the traditional pricing model based on per container, per pound and per pickup fees is more complex than an integrated pricing model, it does tie the fee structure directly to key delivery elements associated with the service. Since pricing is a fixed monthly rate under the integrated waste stream pricing model, service providers will tend to err on the high side when pricing their services to allow a comfortable profit buffer.

Prior to entering into an integrated pricing agreement, hospitals should review their utilization and perform a bottom-up analysis to determine precisely how their unit-based pricing would compare to the integrated model. They should request both pricing options from the vendor, so they can compare them side-by-side in light of their historical utilization trends."

If you would like to share a tip, please email Mackenzie Bean at mbean@beckershealthcare.com.

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