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Planning equipment acquisitions.

As the mire of healthcare reform continues to grow, many providers are developing an insatiable appetite for alternatives to the way they currently do business. For some, solutions come in the form of repackaging the same old stuff. Others have jumped recklessly into every managed, capitated, or reformed idea that has come along. Old-school thinkers are still awaiting government direction. Providers of quality healthcare face increasing demands on their shrinking capital funds. An aging population, indigent care, AIDS patients, medical waste disposal, nursing shortages, declining reimbursement, increasing labor costs, and the federal healthcare reform threat have negatively affected cash flow. Though previous cost-plus reimbursement encouraged wasteful spending, the threat of healthcare reform has already caused providers and suppliers alike to work together to cut costs even without government mandates. The impact has been the closure of over 600 facilities nationwide in the past ten years. More than 70,000 acute care hospital beds have been lost from the US healthcare system. Many healthcare facilities have merged into managed care systems, integrated delivery networks, and regional alliances whose costs can be consolidated and controlled. At the same time, new services and profit centers are also being created to increase revenue. A healthcare moves into alternative care environments--home care, ambulatory care, diagnostic testing--these providers need more capital equipment to serve an increased patient load. Coupled with an aging installed base of technology in the acute care environment, healthcare managers face an ever-growing need for capital equipment and creative financing programs to meet longer payment options.(ABSTRACT TRUNCATED AT 250 WORDS)

Capital Expenditures↗

Leasing can add flexibility to asset management.

Better management of high-technology assets begins with an understanding of a healthcare organization's goals and the equipment it needs to meet them. Under the right conditions, leasing can shift economic and technological risks of equipment obsolescence from healthcare organizations to leasing companies. Steps involved in a leasing decision include reviewing a hospital's equipment acquisition plans; conducting cost-benefit analyses, determining useful and product lives of desired equipment; and watching the market for potential technology changes.

Accounting↗

Finding savings in laundry operations.

A 450-bed hospital, operating at 75 percent occupancy, which has a cash outlay of $10.00 per patient day for linen service, will spend $1,231,875 on linen service per year. If the cash outlay for linen service can be reduced to $7.00 per patient day, the hospital will save $369,562 per year. This article details the factors that affect linen service operations expenses, suggests ways such operations may be improved, and provides a method of measuring the potential savings.

Bedding and Linens↗

Supplier scheduling in a quick response environment.

Achieving the goal of reduced cycle time requires new techniques and new management approaches within a company and between customer and supplier. This article will cover the underlying technology and management orientation required for quick response (QR). Decision criteria for using customer-managed or supplier-managed QR will be discussed. Methods to benchmark and attain QR benefits will be reviewed.

Commerce↗