USA Health recliams $400K by engaging Valify
Laundry and linen should rank high on a health system’s list of performance priorities, shares Andy Motz, Vice President of Advisory Services for Valify. “The category tends to sit in the background as a routine operational expense. However, linen management affects utilization, inventory, loss prevention, staff awareness and infection prevention,” he says.
When oversight is limited, waste can build quietly across an organization, and it often takes a focused partner to bring the problem into view.
This was the challenge facing USA Health, a Gulf Coast academic health system with three hospitals, five facilities and 64 clinics. The organization was dealing with rising laundry and linen costs, inconsistent workflows and limited visibility into what was driving waste. To get a clearer picture, USA Health partnered with Valify to examine the category more closely. For Chase Labrato, System Director of Materials Management at USA Health, one of the biggest problems was a lack of usable information. “The invoicing we received from our previous supplier was very vague, and reporting was sparse,” he says.
Across a system the size of USA Health, Motz shares that limited visibility makes the issues harder to manage. Multiple hospitals, off-campus locations and a wide range of internal stakeholders all played a role in the organization’s linen use. Small inconsistencies from site to site could quickly turn into
a larger operational issue. Billing from the laundry supplier was difficult to interpret. Utilization data was unreliable. And without a clear view of the category, leaders couldn’t easily tell whether costs were being driven by pricing, internal workflows or both.
Looking beyond quality concerns
At first, Labrato explains, the concern centered more on quality than cost. Teams were questioning the linen they were receiving, along with the lack of communication and financial and usage reporting from the existing supplier. But as USA Health and Valify moved through the review, they identified a broader opportunity.
- $400K verified savings through corrected billing & renegotiated rates
- 60% reduction in lost linen replacement costs
The review helped uncover weak visibility into utilization, vague billing and a surprising amount of lost-linen expense hidden inside the category. With better analysis and cleaner data, the team could finally see where costs were building and why. “The cost of uncovering all of this lost linen was astounding to us,” Labrato says.
“That discovery reflects a larger issue many organizations face,” says Motz. Common causes of linen loss in hospitals include items being thrown in the trash, mistakenly placed in red bag waste, used for tasks they weren’t intended for or accidentally sent out with ambulance services or patient transfers. Better utilization data can help providers and laundry partners see how goods are being used and where loss is occurring. “In many cases,” Labrato adds, “linen loss isn’t hard to explain. It’s just difficult to pinpoint without the right reporting.”
“That operational piece proved especially important,” says Motz. “The work required behavior change, supported by reporting and analysis that helped the team to act on what was uncovered.”
Labrato points to practical steps such as signage, on-site education and more detailed reporting that helped staff better understand the operational and financial impact of how linen was handled. Departments with higher soiled-linen numbers received more focused attention. Improved manifests and counts reduced guesswork. New tools and ongoing analysis also helped the team track periodic automatic replenishment levels and manage inventory more consistently.
TWO-PART STRATEGY
For USA Health, improvement came through a disciplined two-part strategy carried out in partnership with Valify.
- Analysis.The teams collaborated on a full operational & financial review that included benchmarking, data analysis & site assessments. Billing practices were validated, supplier overcharges were corrected & pricing was renegotiated to better align with market benchmarks.
- Execution.The work turned from analysis to execution inside the organization. With clearer visibility into where opportunities were located, workflows were standardized across sites. Inventory controls were strengthened. A reject-linen-bag process was put in place so damaged items could be returned & accounted for instead of being discarded.
Savings & operational gains
The financial results were substantial. The initiative delivered an initial $400,000 in verified savings through corrected billing and renegotiated rates. Lost-linen replacement costs fell by 60%. The organization also gained stronger supplier accountability and a clearer path through the transition, with a more informed view of the category than it had before the Valify engagement.
The work also produced day-to-day operational benefits. Labrato adds that linen quality improved, and the way items were packaged and documented made receiving and distribution easier for environmental services teams. Better manifests showed not only poundage but piece counts, which reduced manual guesswork and labor. More detailed tracking also made it easier to identify points of loss before shortages or replacement costs escalated.
Worth a closer look
For other health systems, Labrato and Motz agree the takeaway is straightforward: While laundry and linen may not be the first category leaders examine when looking for savings or operational improvement, that doesn’t make it low impact. When reporting is limited and practices vary across sites, waste can hide in plain sight. When expectations are clear, both internally and with a contracted supplier, the value becomes much easier to identify.
Find out how Valify can transform your organization’s laundry and linen category by reaching out to your HealthTrust Account Manager or by emailing info@getvalify.com
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