Business Case Analysis: Costs of Laundry Services

For thirteen years, William Beaumont Army Medical Center WBAMC has been receiving laundry support from UNICOR, the Federal Prison Industries Inc. Recently, problems with UNICORs prices, cleanliness of finished products and quality of services have been identified by the hospitals Logistics Division and Infection Control offices. A business case analysis was conducted to research these issues and to explore an alternative laundry source. Two scenarios were analyzed remain with UNICOR or contract with a commercial company. As a result of the study, it was found that UNICOR violated healthcare infection control standards due to facility deficiencies. The corporation also lacked transportation services and their laundering process reduced the quality of finished products. Financially, it has been costing the hospital more than twice what it would cost to contract with a private company. A 1.48M cost savings has been projected over the next five years if WBAMC withdraws from its agreement with UNICOR and contracts with a local private company.