Hospital Linen Supply & Management Services Procurement Research Report Now Available from IBISWorld

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The rising number of people who are older than 65 will influence hospital linen supply and management services in coming years because this will increase demand for healthcare services, which use this market’s services. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of Hospital Linen Supply & Management Services to its growing collection of procurement research reports.

IBISWorld industry market research
Prices will continue to grow as the number of elderly people continues to increase, supporting higher demand for healthcare services

Hospital linen supply and management services have a buyer power score 3.4 out of 5. A higher score indicates better negotiating conditions for buyers. The score reflects recent beneficial pricing trends and increased supplier competition. “The industry is also undergoing consolidation, which has given buyers the ability to negotiate with suppliers for the most competitive price,” IBISWorld procurement analyst Kiera Outlaw says. In such a saturated market, suppliers need to exhibit some flexibility in prices to remain competitive; ultimately, this benefits buyers. Currently, the market’s top suppliers include Angelica Corporation, Crothall Healthcare and Healthcare Services Group, Inc.

The average hospital linen supply and management service price includes textile rental, and laundering and delivery services. Linen loss and replacement costs are not included in the average price because of the different charge methods available. “Buyers are subject to a moderate price range because of the various volumes of linen usage, the variety of management systems and the different charging method available,” Outlaw says.

Although price is an important factor in purchasing linen supply and management services, it is not always the key determinant. Prices differ according to the breadth of linen requirements and the type of management system used. Moreover, length of contract also comes into play; buyers that opt for multiyear contracts are more likely to be able to negotiate lower prices.

IBISWorld estimates that prices will trend upwards in the three years to 2016. Key demand drivers, such as the number of people with health insurance and the number of adults aged older than 65, will drive demand for healthcare services, increasing linen usage rates. This will prompt hospitals to outsource linen services at a faster rate; however, the continued trend of supplier consolidation during the period will cause buyer power to decline slightly. As suppliers increase in size and scale, and demand for services trends upward, IBISWorld expects that buyer purchasing power will moderately decline during the three-year period. For more information, visit IBISWorld’s Hospital Linen Supply & Management Services procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of hospital linen supply and management services. Establishments in the healthcare sector can rent linen and supply management services from this market’s suppliers. Hospital linens include mattress pads, stretcher sheets, barrier drapes, antimicrobial pillows, bed sheets, bedspreads, blankets, pillows, and protective pillowcases. Linen management services encompass all aspects of linen processing, including linen rental programs, laundering services and in-house distribution. This report excludes other hospital and medical apparel, textiles and services, such as patient or medical staff clothing, surgical textiles, medical gloves and other accessories, and supply and management services pertaining to these products.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Danielle Goodman
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