Reducing Cost and Environmental Impact in Health Care through a Total Cost of Ownership Tool
Recorded On: 09/07/2017
With tremendous cost pressures within the U.S. health care system, health care providers are looking at different ways to save money. For many medical devices there are submerged costs that are not always reflected in the purchase price and may not be considered during purchasing decisions. To reduce these costs and associated impacts, the total cost of ownership of a product or service should be included during purchasing decisions to assess the full cost to an organization.
To address this need, a total cost of ownership tool has been developed to provide purchasers with a standardized and systematic way to consider the environmental costs of products that are procured. These environmental costs are not always readily apparent and may include things like the cost of energy, water or waste disposal. Partnering with Trucost, Practice Greenhealth worked collaboratively with hospitals and health systems, suppliers, and GPOs to build, test, and now deploy a tool for health care.
This session will share the outcomes from two health care organizations that have used the tool. They will highlight where and how the tool was applied, the user requirements, the targeted products, the outcomes showing the comparison of costs and savings identified. This session will demonstrate the benefit of looking at a total cost of ownership to identify valuable savings opportunities combined with a “win-win” to reduce environmental and human health impacts that are also a priority to shrink health care’s environmental footprint.
- State the business case for including a Total Cost of Ownership (TCO) evaluation in the purchasing process for health care products.
- Observe how the TCO tool provides an easy and standardized method to calculate total costs to healthcare to inform purchasing decisions.
- List the submerged cost areas that impact the total cost to your organization.
- Calculate the savings and outcomes from two case studies that have used the TCO tool.
Standard Fee: $79
Practice Greenhealth Member: FREE!
Practice Greenhealth Subscriber: FREE!
Senior Director of Supply Chain, Dana Farber Cancer Institute
Andrew Madden is a healthcare professional with over 30 years of experience. He has held a range of leadership roles within healthcare. Currently, as the Senior Director of Supply Chain at the Dana Farber Cancer Institute, he is a key senior member of the Institute Operations team with a primary focus on leadership of Supply Chain, Materials Management, Strategic Sourcing, Supplier Contracting, Purchasing, Procurement, Value Analysis, Biomedical Engineering, Central Sterile, Linen, Warehouse/Logistics and Retail Operations. Responsible for over 600 million in spend. Prior to his role at DFCI Andrew held the Director of Materials Management position at Brigham and Women’s Hospital.
LEED AP BD+C, Senior Sustainability Specialist, University Hospitals
Matthew Pietro serves as Senior Sustainability Specialist for University Hospitals Health System in Northeast Ohio where he manages many sustainability initiatives including advancing a comprehensive energy management strategy and collaborating with community partners covering Northeast Ohio. UH is also being recognized this year with many awards for their terrific work in sustainability so it’s terrific to have Matt share their efforts with us.
Beth Eckl (Moderator)
Director of Environmental Purchasing Program
Beth Eckl is the Director of the Environmental Purchasing Program for Practice Greenhealth providing technical support, consulting services and training on environmental purchasing for health systems, healthcare facilities and group purchasing organizations. Beth oversees the development of technical, environmental criteria for dozens of medical and non-medical products used in hospitals. She is also responsible for the EPP Specifications Guide for Health Care, the first and only source for health care supply chain professionals. Beth brings more than 15 years of experience in waste management and environmental purchasing to guide members successfully through all the steps in developing and implementing environmental purchasing to fill a critical part of their journey to sustainable health care.