Gpt waste cost savings for healthcare estates delivered through improved waste management

GPT

WHITE PAPER

the waste solution

Cost savings for healthcare estates

delivered through improved waste management How effective waste management can lead to greater efficiency in the healthcare sector.

The Waste Solution | www.gptwaste.com | info@gptwaste.com

Cost savings for healthcare estates delivered through improved waste management How the process of effective waste management can lead to greater efficiency in the healthcare sector You only have to read a newspaper or turn on the news to see the NHS is struggling to meet the balance between demand for healthcare services and funding. The NHS faces an unprecedented financial dilemma: the supply of funding is struggling to match the growing rate of demand for healthcare. The financial challenge for the NHS is immense, it includes funding variations, in terms of treatment areas, procedures and regions, differing approaches to budget management across the regions and the impact of rising demand for services on healthcare costs. All this is against a background of pressure to make progress and deliver efficiency.

This White Paper is provided as a reference tool for Healthcare Estates Managers and Finance Directors to demonstrate the opportunities for cost savings through the implementation of effective improved waste management strategies. It is based on a simple example, a new approach and the impact it has had on a healthcare organisation’s bottom line.

Spend in the NHS can be simplistically split into four main areas: 

Drug Costs



Planned Care



Unplanned Care



Operational Costs

These budgets are viewed often in isolation; however there are financial, operational and environmental gains to be enjoyed by putting waste management higher on the management agenda. In this White Paper, GPT Waste explain using a strong example, that by changing the shape of the decision-making process for procuring waste services across the healthcare sector, valuable funds can be released from budgets to be re-invested where it matters most… on patient care and service improvement.

The NHS spends in excess of £700m each year on waste disposal. How waste is managed within the healthcare sector has a direct impact on the bottom line for each healthcare organisation.

Poor management of medical waste potentially exposes hospital staff, health care workers, waste handlers, patients and the community at large to infection, toxic effects and injuries, and risks polluting the environment. The term “medical waste” encompasses all waste materials produced

within healthcare facilities such as clinics, hospitals, dental practices, blood banks, veterinary clinics as well as medical research facilities, cleanrooms and laboratories.

The Medical Waste Tracking Act of 1988 defines medical waste as "any solid waste that is generated in the diagnosis, treatment, or immunization of human beings or animals, in research pertaining thereto, or in the production or testing of biologicals."

Waste generated in the healthcare sector includes an extensive range of materials, from used syringes to soiled dressings, diagnostic samples, blood, chemicals, pharmaceuticals, medical devices and radioactive materials. There are a range of waste treatment technologies available to ensure the correct disposal of medical or healthcare waste depending upon the size of the establishment and the waste produced.

It is essential that the person responsible for managing the waste within each healthcare establishment, fully understands its waste streams and the correct methods of disposal for each stream. If waste is managed incorrectly, it can become extremely costly for the organisation. The amount of waste sent to landfill can be reduced through smarter procurement and improved waste management through increased recycling and routes to process.

A case in point In 2011, GPT Waste began talks with a global hospital group with a network of over 30 hospital facilities in the UK. As part of the process, GPT Waste undertook site visits to audit the existing waste across each of the facilities.

The results of the audit highlighted that several thousand tonnes of waste was being produced per year due to existing clinical waste disposal methods that were in place. The cost to the organisation was nearly ÂŁ1.3m per annum. Of this waste, 64% was being disposed to Landfill, which meant that the existing spend on waste disposal was extremely high.

The audit of the facilities highlighted inefficient handling of waste, potential to segregate more effectively and a gap in the knowledge of staff.

The Waste Management Solution As a result of their findings, GPT Waste proposed a number of improvements to the existing waste management systems and developed a tailored waste management strategy which was implemented, tracked and monitored from inception.

With sustainability objectives in mind, the Directors of the hospital group recognised the opportunity that GPT Waste presented and proceeded to work with them to implement the integrated waste management strategy.

By correctly and accurately segregating waste, the private healthcare group made savings in excess of £225,000 in the first 15 months whilst also increasing their overall recycling rate to over 97%

The Benefits The client monitored and reported upon the waste streams and costs savings made from the outset.

‘HPD’ is the widely accepted process for assigning expenditure and measuring the cost against patient care, these costs can be direct or indirect, but all go towards the cost of a patient stay. In this graph we can see how the cost per HPD reduces against Waste expenditure.

Total Waste Cost per HPD The waste cost per HPD dropped from £4.18 to £3.02

Domestic Waste Profile The level of domestic waste recycled by the group increased from 50% to 69% and over 31% of domestic waste was diverted from landfill.

Total Waste Profile The expensive clinical waste disposal reduced from 40% of waste to 30% which equates to a difference of £0.30/Kg (clinical @ £0.42/kg vs. recycling @ £0.12/Kg).`

GPT Waste reduced the overheads for the group in excess of £225,000 in fifteen months, whilst also increasing their overall recycling rate to over 97%.

Summary Financial savings of over 20% can be achieved through more considered approach to the procurement of waste services and the management of the service.

Those funds could be

reinvested into budgets that are closer to the point of care. How many hip replacements could an NHS hospital provide for £225,000 reduction in costs?

Savings of 15 to 25% can be achieved through a more considered approach to the procurement of waste services. Clearly, understanding how to get the best procurement deal is important, but so is developing a robust waste management strategy through understanding the options available to process waste. If your healthcare estate is looking to reduce cost, increase operational efficiency and improve their environmental credentials, then a revised approach to waste management should be considered. The key difference is between ‘waste disposal’ and ‘waste management’. Waste disposal is costly, waste management is less costly but more effective, because it identifies how to reduce waste arising.

GPT Waste provides clinical healthcare and pharmaceutical waste management services, specialising in protecting people and reducing risk. They work with local and national companies across the public and private sector to improve employee and customer safety, ensure legislative compliance and minimise the environmental impact of waste disposal.

Their services include: 

Resource management guidance



Hazardous waste management programmes



Pharmaceutical waste disposal

With an extensive UK network of service providers and their disposal facilities, GPT Waste provide a range of services to NHS trusts, GPs, dentists, pharmaceutical manufacturers, private sector businesses, research companies and many more.

To speak to someone about your pharmaceutical and clinical waste disposal requirements, call 0844 854 5000 or email info@gptwaste.com

GPT Waste, the largest UK independent provider of waste management solutions and sustainable waste services offer a free waste review consultation for Directors. www.gptwaste.com www.thewastesolution.co.uk

GPT Waste 14 Whitworth Court, Manor Farm Road, Manor Park, Runcorn, Cheshire WA7 1WA Tel: 0844 854 5000