Keeping Per Resident Day Cost Down

Every two or three years most long-term healthcare facilities go out to bid for their food and associated supply needs; however, every year it seems the cost per resident day increases. The question that must be asked is, is the overall increase in costs per resident day justified? It is not enough to create a Request For Proposal (RFP), receive bids back from the distributors and choose what is considered to be the best proposal. An active involvement must take place on an on-going basis to evaluate and re-evaluate all factors that contribute to the expense of running the food service department.

It is easy to say that the food and supplies have been bid out. It takes a very dedicated effort to keep costs per resident day down. This effort needs to encompass activities such as:

  • On a quarterly or semi-annual basis, run a descending dollar report. Understand these expenses and how you may be able to reduce them. Typically about 20% of your physical items will be responsible for about 80% of your spend.
  • Question the size of products being purchased in terms of waste as well as determining if a smaller size may be a better value.
  • As new menus are implemented, have a supervisor in the dish room watching what food and supply items were not eaten or used. Evaluate whether these items should be on the menu or placed on the resident’s tray.
  • Monitor and understand your costs per resident day overall and by category. How do these per resident day costs compare with other facilities.
  • Technology can be a great tool to improve operations and reduce time spent on repetitive actions.

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Today, PRIME Services has three divisions, all focused on removing costs from the supply chain while increasing operational efficiency. The three divisions are; Group Purchasing and Custom Contracting, Consulting and Purchasing Services (CAPS), and a Technology Division

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