Application of business model canvas to merchandising sterile supplies from a hub hospital to smaller hospitals in India

  • 0Professor & Head (Hospital Administration), Kasturba Medical College, Manipal, Manipal Academy of Higher Education, Manipal, Karnataka, India.

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Summary

This summary is machine-generated.

Outsourcing Central Sterile Supply Department (CSSD) services from larger hospitals to smaller ones offers mutual benefits. This model enhances equipment utilization for large hospitals and reduces capital investment for smaller facilities.

Area Of Science

  • Healthcare Management
  • Hospital Operations
  • Supply Chain Management

Background

  • Central Sterile Supply Departments (CSSDs) can be regionalized to benefit hospitals of all sizes.
  • Larger hospitals can leverage existing CSSD infrastructure to offer services to smaller institutions.
  • This approach minimizes capital investment for smaller hospitals seeking sterile supply services.

Purpose Of The Study

  • To evaluate the feasibility and financial implications of outsourcing CSSD services from a hub hospital to spoke hospitals.
  • To present two distinct business models for sterile supply regionalization: the processing model and the rental model.

Main Methods

  • A prospective observational study was conducted at a central hub hospital.
  • Return on investment (ROI) was used as the primary evaluation tool.
  • The Business Model Canvas framework identified potential spoke hospitals, and two service models were proposed.

Main Results

  • In the processing model, the hub hospital retains ownership of CSSD infrastructure, while spoke hospitals own instruments. Annual profits for the hub hospital range from 60% to 28%.
  • In the rental model, the hub hospital owns both infrastructure and instruments, with spoke hospitals paying rent. Annual profit margins for the hub hospital are between 50% and 35%.
  • Cost analysis included building, equipment, sterilization, manpower, and transportation.

Conclusions

  • Smaller hospitals gain access to sterile supplies without significant capital expenditure on infrastructure, personnel, or space.
  • Larger hospitals can achieve greater efficiency in their CSSD operations and accelerate the return on their initial investments.
  • Regionalization of CSSD services presents a viable strategy for optimizing resource allocation and financial performance across healthcare networks.

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