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Survey: Laundry Still Most-Outsourced Department

CHICAGO — Laundry services held the top spot among hospital department contracts in 2008 for a third straight year, according to the 31st annual Outsourcing Survey produced by our sister publication, Modern Healthcare.
Contracts for laundry services, clinical/diagnostic equipment maintenance, and housekeeping services represented nearly 63% of healthcare contracts last year, based on the responses of outsourcing companies that participated in the magazine’s voluntary survey.
They accounted for a combined 13,877 healthcare clients last year, up approximately 4.9% from 13,223 reported for 2007, based on same-firm comparisons.
While remaining the department that was most outsourced, the number of laundry contracts rose only 0.9% in 2008 to include 7,986 healthcare facilities.
Clinical/diagnostic equipment maintenance increased 18.8% to 2,959 facilities. Housekeeping was a close third, increasing 5.7% to 2,932 facilities. Food service, which was third in last year’s survey, was fifth with 1,196 facilities served in 2008.
Overall, the total number of facilities in the top 20 hospital department management categories grew approximately 9.2%, from 20,679 in 2007 to 22,587 in 2008.Modern Healthcare’s survey provides an “unscientific snapshot of trends reported by companies that provide on-site management to hospitals, long-term-care facilities, and alternate sites such as clinics and physician group practices,” writes reporter Joe Carlson.
Fifty-one companies responded this year, compared to 52 in 2008. Full survey results appeared in Modern Healthcare’s Sept. 28 issue.LAUNDRY, HOUSEKEEPING BY THE NUMBERS
The top laundry contractors in 2008, by total number of healthcare facilities reported, were:

  • Angelica Corp., Alpharetta, Ga. — 4,647 contracts in 2008 from 4,680 contracts in 2007 for a 0.7% decrease.
  • Healthcare Services Group, Bensalem, Pa. — 2,399 contracts in 2008 from 2,301 contracts in 2007 for a 4.3% increase.
  • Crothall Services Group, Wayne, Pa. — 634 contracts in 2008 from 650 contracts in 2007 for a 2.5% decrease.
  • Unitex, Mount Vernon, N.Y. — 276 contracts in 2008 from 254 contracts in 2007 for an 8.7% increase.
  • HHA Services, St. Clair Shores, Mich. — 21 contracts in 2008 from 20 contracts in 2007 for a 5% increase.
  • Rite Way Service, Birmingham, Ala. — Nine contracts in 2008, which was unchanged from 2007.

The top housekeeping contractors in 2008, by total number of healthcare facilities reported, were:

  • Healthcare Services Group, Bensalem, Pa. — 2,405 contracts in 2008 from 2,310 contracts in 2007 for a 4.1% increase.
  • Crothall Services Group, Wayne, Pa. — 349 contracts in 2008 from 284 contracts in 2007 for a 22.9% increase.
  • HHA Services, St. Clair Shores, Mich. — 108 contracts in 2008 from 112 contracts in 2007 for a 3.6% decrease.
  • Rite Way Service, Birmingham, Ala. — 40 contracts in 2008 from 42 contracts in 2007 for a 4.8% decrease.
  • ISS TMC Services, Livingston, N.J. — 30 contracts in 2008 from 27 contracts in 2007 for an 11.1% increase.

Sodexo Health Care, which re-ported having 99 laundry contracts and 541 housekeeping contracts in 2007, did not participate in this year’s survey.
To learn more about Modern Healthcare, visit www.modernhealthcare.com.
 

Have a question or comment? E-mail our editor Matt Poe at [email protected].