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Hospitals should include clauses in contracts when renting medical equipment to patients.

A piece of equipment was loaned by the hospital to a patient for home use. The equipment required an electrical connection for proper functioning. The use of the equipment placed an overload on the electrical circuit in the patient's home. A fire resulted. The home was extensively damaged, the patient suffered third-degree burns, and the patient's cat was killed. In this dialogue, Dr. Decker discusses the legal issues involved.

Consumer Product Safety↗

Managing patient equipment as an asset.

As materiel managers review asset management of patient equipment, it is important to remember that tracking the use, not the inventory of the equipment, could increase revenue and operating profits. Tracking utilization, making effective acquisition decisions with regard to purchasing, leasing or renting, and considering the life cycle and support necessary for products will optimize the management of capital assets, and produce real savings.

Costs and Cost Analysis↗

Analysis of nursing home capital reimbursement systems.

An increasing number of States are using a fair-rental approach for reimbursement of nursing home capital costs. In this study, two variants of the fair-rental capital-reimbursement approach are compared with the traditional cost-based approach in terms of after-tax cash flow to the investor, cost to the State, and rate of return to investor. Simulation models were developed to examine the effects of each capital-reimbursement approach both at specific points in time and over various periods of time. Results indicate that although long-term costs were similar for the three systems, both fair-rental approaches may be superior to the traditional cost-based approach in promoting and controlling industry stability and, at the same time, in providing an adequate return to investors.

Accounts Payable and Receivable↗

Predictions bullish for industry's future.

What's around the corner and down the road for the textile rental industry? Four CEOs--Richard Farmer, William Leonard, Richard Senior, and James Stefoff--give their views on future industry profitability, evolutionary trends and specialization, healthcare market stability, and survival tactics.

Bedding and Linens↗

TRSA's (Textile Rental Association of America) strategic analysis of the industry for 1992.

Growth exceeding Gross National Product (GNP), strong competition, ongoing consolidation, and improving profitability--trends that have characterized the textile rental industry throughout the 1980s--continued in 1990. And despite a recession in the latter part of the year, the trends appear to be indicative of the decade ahead. The compelling question for the industry and the country is whether or not the recession is over, also unclear is the rate of recovery that can be anticipated. Economic assumptions, developed jointly by the Council of Economic Advisers, the U.S. Treasury, and Office of Management and Budget, show a resumption of economic growth in the latter half of 1991 with the pace accelerating into 1992. Real GNP growth is predicted to become about three percent annually by 1995-96, and to be accompanied by gradual declines in inflation and interest rates. This annual strategic analysis by TRSA officers and staff offers insights into industry trends as well as the issues affecting customers and the market place.

Bedding and Linens↗

The Medicare safe harbor rules and their effect on home care.

The Office of Inspector General has issued regulations that provide categories or standards for permissible relationships (safe harbors) which might otherwise be suspect under the kickback law. To take advantage of safe harbor protection, however, it is necessary to comply with all of its terms.

Contract Services↗