Building Service Contractors: A Strategy to Enhance Performance and Cost Savings

Enhance Building Service Performance & Cost SavingsIn this age of Healthcare cost reduction strategies, we have always been encouraged to look for the “low hanging fruit”.   We all know, there is no such thing as low hanging fruit left out there.  Most Healthcare institutions have already addressed these opportunities over the last several years and additional savings opportunities are much harder to obtain.

However, I might suggest that one opportunity may exist and deserves your attention and consideration.

Each of our Healthcare Systems have dozens, if not hundreds, of local community care facilities ranging from physician office buildings to surgery and urgent care delivery sites.

Each of these facilities is cleaned and maintained by janitorial service organizations ranging from single entrepreneurs on up to very large regional and national companies.  With this fragmented strategy, we find that service levels, regulatory compliance, and costs can vary greatly throughout the system.

One Healthcare system that we worked with successfully transitioned from 39 different janitorial and cleaning services down to one strong service provider which enhanced and standardized operational performance AND resulted in cost savings of over 9%.  Annual savings achieved of $500K+.

Healthcare systems have current opportunities to consolidate and standardize this service to drive operational consistency, regulatory compliance, improved cleanliness, and reduced costs.

On average systems spend over $5,000,000 annually on janitorial services.  An 8% to 12% savings opportunity can be achieved through this consolidation strategy while also realizing improved operational benefits.

Soriant HealthcareEnvironmental Services begins the assessment process by identifying all outpatient facilities and helping our clients to determine the type of organizations that are providing janitorial services across your system.  We will help you determine operating specifications for the various types of clinical services provided by classification of facility. (i.e., Surgery Center being a Class A, Office Building being a Class B, etc.)  Understanding the specific needs of each patient care service site and the building manager and staff is critical to the success of the engagement.  Additionally, adapting a standardized service delivery system to meet the individual needs of each site is the foundation of a successful program.  Soriant will organize and understand your current data and performance standards prior to executing a Request for Proposal to consolidate these services.

Once the correct partner has been selected, it is critical to develop a disciplined and consistent performance reporting and audit system.  This will ensure ongoing and continuous operational performance and financial improvement throughout the length of the contract.  It is essential that one of your system leaders is assigned as the “point person” to supervise this contract relationship; thus, ensuring ongoing communications and operational action throughout the term of the contract.

An additional aspect of this consolidation strategy is that it can go beyond just cleaning services.  Consider overall facility, grounds maintenance, and supply chain functions.  These services can be consolidated and standardized throughout your Healthcare System properties driving significant performance improvement and financial savings.

Yes, it takes some time to gather and analyze your specific data and to understand your circumstances, but Soriant Healthcare can do the heavy lifting to assist you in the process – and the rewards can be meaningful.

We understand this space and can expedite the process.

By |January 16th, 2018|blog|

About the Author:

John is a skilled Executive with over thirty years of management experience in healthcare and various other service industries. He specializes in producing measurable, meaningful, and sustainable organizational performance improvement, through strategic planning, human resource development, and operational process change initiatives.