Cost Analysis of Linen Management at a Tertiary Care Teaching Hospital in South India: A Retrospective Study

Abstract

The linen are the medical consumables which are used on everyday basis in the hospitals. The cost incurred due to the linen procurement, processing and maintenance may be invisible to the eyes but they have a significant impact on the overall budget of the hospitals. Hence, costing is important for efficient linen management and also to keep a check on the costs which may increase if not monitored carefully.  The objective of the study was to study the various costs incurred to the hospital for linen management at a tertiary care teaching hospital. A retrospective study was carried out for a period of 6 months from December,2018 to May,2019. The data regarding the expenses incurred was collected from various departments of the like purchase department, linen department, finance department, transportation department and outsourced laundry service. The costing method was used to assign the various cost heads to laundered and non-laundered items. It was found that the hospital incurred Rs.25 per kg in procurement, processing and maintenance of linen excluding the space cost, electricity, water and chemical cost. The conclusion was drawn that the hospital was not required to outsource the linen department.