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CASE STUDY

VA Medical Center

 

A 580-bed VA Hospital Increases Efficiency and Saves $427,426 with alEx.

Business Challenge

With an on premise laundry and 60 linen distribution points, the VA faced considerable challenges ensuring the linen needs of the hospital were met. Costs also were increasing, with annual processing costs at $1.7 million, replacement costs at $537,354, and five full-time employees assigned to linen distribution.

The alEx Solution

​To solve these problems, the hospital decided to secure approximately 60% of its total linen with the alEx solution. With alEx, the hospital streamlined linen distribution processes, established a more efficient replenishment program and improved staff satisfaction.

With an overall decrease in utilization after the alEx installation, the VA’s annual processing costs dropped to $1.4 million and linen replacement costs dropped to $394,199. In total, the hospital experienced total annual savings of $427,426, beating the projected savings goal of $392,000.​​

New efficiencies gained allowed the laundry to reallocate three full-time linen distribution employees to other EMS responsibilities, while at the same time driving laundry pounds per operating hour from 95 to 109*.

With alEx, linen shortages are minimal since linen distribution staff can view inventory levels with the linen management software and provide proactive service delivery. Additionally, with the automatic closing doors on alEx, Joint Commission violations are no longer a concern since linen is always securely covered.

Before

After

Total Savings: $427,426

TOTAL ANNUAL SPEND

Processing and Replacement Costs

$2.2M

$1.79M

LAUNDRY POUNDS PER OPERATING HOUR

Before

After

95

109

13% Improvement

*VA Standard = 80 PPOH

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The Results

  • Processing costs decreased from $1.7M to $1.4M 

  • Linen replacements decreased by 26%

  • Total annual savings of $427,426

  • Reallocated 3 FTE’s from linen distribution to other EMS responsibilities

  • Linen pounds per operating hour (PPOH) improved from 95 to 109

  • Improved employee satisfaction

  • Compliance with The Joint Commission infection prevention standards