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The Top 10 Costs and Disadvantages of an On-Premise Laundry

  • February 01, 2018
  • Uncategorized
  • Crown Healthcare
disadvantages of an on-premise laundry

Many healthcare managers think that by doing their laundry on-site, they’re reducing costs. Nothing could be further from the truth. The costs of running an on-premise laundry for your healthcare facility are astronomical in terms of money, time, and energy.

Trust us – we run a healthcare laundry for a living. Here are the top 10 costs and disadvantages of an on-premise laundry.

The Costs and Disadvantages of an On-Premise Laundry


1. Laundry Production Payroll

Payroll costs for wages paid to hourly employees who handle linen, including laundry production, soiled sort, washroom, flatwork, ironing, tumble dry operation, etc., end up being quite costly. Laundry production takes up long, hard hours and paying for employees to work on these tasks will put a dent in your wallet.

2. Management Payroll

Employees who handle linen inspection, linen control, janitorial services, machinery repairs and maintenance, and internal linen distribution will also take up a huge chunk of your finances.

3. Employee Benefits

If your laundry workload becomes too much to handle, your business may have to resort to hiring new employees. Employee benefits include payment of social security, worker’s compensation, holidays, vacations, state unemployment, health insurance, union contributions, etc.

4. Laundry Chemicals

In order to successfully clean your linens in an industry where sanitation is of the utmost importance, you’ll need to purchase detergents, alkalis, bleach, sour, fabric softener, antibacterial agents, starch, and more.

5. Maintenance, Repair, and Parts Costs

Machine repair parts includes all lubricants, drive belts, iron pads and covers, tools, boiler treatment, and water softener salts. These supplies are necessary for keeping your laundry equipment up and running.

6. Utilities

Gas, electricity, fuel oil and water account for a large part of laundry expenses. Getting out stains from blood and bodily fluids takes a lot of energy that your business will need to pay for.

7. Taxes, Licenses and Permits

You can’t just purchase a washing machine and throw in some soiled bed linens. Taxes, licenses, and operating permits must be paid and allocated to laundry operations.

8. Equipment Costs

Commercial laundry equipment, especially the kind required by the high standards of cleanliness in the medical industry, doesn’t come cheap. Aside from the initial purchasing costs, equipment experiences wear every time it is operated. Consider replacement costs for worn-out products.

9. Insurance/Other Business Expenses

In order to conduct laundry processes, it is important for businesses to pay for insurance, lease charges, safety expenses, uniforms, training, and other expenses associated with the laundry.

10. Lost Opportunity Costs

Lost opportunity costs are probably the single most overlooked cost. By doing your healthcare laundry on-site, you’re losing valuable employee time and work space. Consider using the laundry and linen storage areas as revenue-producing areas instead.

How Can I Avoid the Disadvantages of an On-Premise Laundry?

The answer is simple: invest in a quality healthcare laundry service like Crown Health Care Laundry Services.

You can eliminate the expensive costs of an on-site laundry by letting us take care of it for you. We have high-tech equipment, well-trained employees, and certifications that prove we meet the highest industry standards for healthcare linens. Contact us today to learn more about how you can avoid the disadvantages of an on-premise laundry by working with Crown!

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