Service Alternatives WASH JOB: “COG” - “NOG” –Linen is owned by the hospital. –Laundry “Washes-Squashes-Ships It.” –Priced on a “Cost Per Pound” basis. –Can be based on CLEAN OR SOILED weight. TEXTILE RENTAL –Laundry owns the linen. –Laundry “Rents” it to the hospital. –Delivered on a “Cost Per Piece” basis.

Key Audit Elements: Wash Job All weights should be checked at the hospital. The linen should be weighed both soiled & clean by Hospital Personnel. The Tare Weight of each cart should be checked. The Soiled Weight should be No More Than 10% Heavier than the Clean Weight. –If it is, and the weights are correct, the laundry may be losing your linen. If it is, and you are being charged by soiled weight, you may be getting cheated.

Key Audit Elements: Wash Job Mending & Rewash provisions should be made part of all Wash-Job Contracts. Otherwise, these items will be Rejected in Nursing & thrown in the soiled linen or trashcan. An accurate accounting of “Rag-Outs” should be maintained by the hospital. The cost of linen discarded should vary between $.025 and $.035 per pound processed.

Key Audit Elements: Wash Job Over a period of time, the number of Rejects should be quantified. If the number of rejects exceeds 2% or 3% for any item, the problem should be brought to the attention of the laundry.

Key Audit Elements: Wash Job Inventory levels should be verified Semi-Annually by a Physical Inventory! If the laundry operates 5-Days Per Week, the inventory should be: 7 Times the ADU on Patient Linen. 15 Times the ADU on Low-Use Patient Linens & Surgical Linens. This can be Reduced by One ADU for Every Day Beyond 5 that the Laundry Operates! Rates of Issue can be Established After 2 Inventories! Rates of Issue Should Change with Each Inventory!

Key Audit Elements: Wash Job Inadequate Inventory is the most common service problem in Wash-Job contracts. Linen Replacement Calculation: –Previous Inventory + New Linen Inputs- Ending Inventory- Rag-Outs = Linen Walkout. In a well-controlled setting, linen walkout can be as low as $.50 PPD. In an uncontrolled setting, it can be as high as $6.00 PPD.

Key Audit Elements: Wash Job –If Linen Replacement Cost is Below these numbers, either good controls are in place, or the Inventory is Short. –If the numbers are Higher, there is good potential for Substantial Cost Savings!

Key Audit Elements: Wash Job –The Laundry & the Hospital should be in Full Compliance with: JCAHO Guidelines. State & Federal Requirements. –The Laundry should provide the Hospital with manuals supporting this compliance. Blood-borne pathogen compliance. Infection control & safety. Employee training & re-training.