All industries need to address cost inefficiencies, but none more so than the healthcare sector – including hospitals, medical centres, aged care and many more. The sector’s unique challenges have flow on effects not just for the organisation, but for its patients, staff and community.
These challenges, in addition to the greater difficulties in obtaining government funding, means that businesses within the sector will need to operate smarter – reducing operating costs and managing cash flow, while continuing to deliver the highest level of care, invest in cutting-edge equipment and attract specialist staff.
Getting the balance can be complex, as Queen Victoria Care experienced: “Aged care reforms meant we were faced with new challenges when trying to secure vital upgrades to our premises. We needed a structure that matched our cash flow needs and delivered flexible terms, allowing us to channel our valuable capital away from depreciating assets and towards investments that would deliver a better outcome for our business.”
Health check for your business
Regularly assessing your cash flow and operating costs can be key in identifying opportunities for change – and even small changes can have a considerable impact.
1. How do you pay for critical infrastructure?
The large capital cost of upgrading equipment means you are at risk of breakdowns. By adopting a managed service agreement for critical infrastructure allows you to pay for the upgrade out of your operating cost budgets, removing the upfront capital cost hurdle, allowing you to upgrade sooner.
2. Are you using power inefficiently or during peak times?
Inefficient use of power – whether through older heating/cooling systems or time of use – can result in penalties being applied by the retailer. Although usage times can be hard to change, particularly if you operate 24 hours a day, implementing power factor correction equipment could have you operating more effectively and save you money over time.
3. Are large energy bills hurting your budgets?
With the cost of energy constantly rising, budgets can be stretched to their limits. Consider ways you can reduce your energy outgoings by structuring a solution via a managed service agreement that requires no capital outlay and can deliver an immediate net economic benefit.
4. Do you need to preserve capital for cutting-edge equipment?
Investing in advanced equipment for your organisation is beneficial for both patients and staff, and can attract specialists to your facility. Utilising a managed service agreement, you can invest in cutting-edge equipment that will deliver an ongoing benefit to your facility.