Reston, Va.-based Practice Greenhealth unveiled its Greenhealth Cost of Ownership Calculator Wednesday, a free tool that compares the initial costs and long-term savings of medical equipment and supplies.
The calculator, formatted as a series of algorithms in an Microsoft Excel document, provides hospitals and group purchasing organizations with valuable data to assess and compare product costs. This includes any additional costs associated with equipment — like maintenance, water, energy and disposal expenses — that hide behind the initial price tag, according to the report.
The nonprofit organization, dedicated to promoting sustainable healthcare, hopes this tool will change the way purchasing decisions are made and encourage health systems to invest in environmentally friendly products that will cut costs in the long run.
"We've been feeding customers and leadership the wrong information," said Andy Madden, senior director of supply chain at Boston-based Dana Farber Cancer Institute, who helped design and test the calculator. "We're giving them the 'price at the pump,'" he said. "This tool gives us a true idea of cost of ownership."
To access the Greenhealth Cost of Ownership Calculator, click here.
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