The launch of the ACA, along with strong growth in federal funding for Medicare and Medicaid, has supported moderate price growth during the past three years
Los Angeles, CA (PRWEB) April 30, 2015
The hospital linen supply and management services market has a buyer power score of 3.3 out of 5, indicating slightly favorable negotiation conditions for buyers. According to IBISWorld analyst Kiera Outlaw, buyer power has been hindered somewhat due to rising market share concentration. Although still low, concentration has been rising as larger vendors have been increasingly acquiring smaller players to garner a greater share of the market. Fortunately for buyers, this market's top four players account for less than 30.0% of total market revenue, meaning that buyers still have the ability to leverage multiple bids to find the most competitive pricing. High price driver volatility has weighed against buyer power as well. However, when combined with low market share concentration, suppliers have been encouraged to keep service prices low and stable to attract customers.
Buyer power has been somewhat supported due to the moderate availability of substitutes. Although linen laundering is an unavoidable necessity for buyers, buyers do have access to a few viable alternatives such as an on-premise laundry, on-site management or using disposable linens. The costs associated with each option vary and can be considerable, but buyers can use these options as leverage during the negotiation process, says Outlaw. Buyers can also leverage this market's low degree of specialization because it indicates that the majority of suppliers provide quality linen services as well as additional services, such as usage statistics. These additional services allow buyers to better manage their linen costs.
Fortunately for buyers, the medium range of prices for linen services indicates that buyers have a number of options at their disposal. Depending upon the complexity of their required management system (e.g. rented linens or customer-owned goods), buyers can often negotiate lower prices based on their expected volume of linen usage. Furthermore, prices have been stable during the period, which has allowed buyers to procure linen management services without the risk of sudden price increases. For more information, visit IBISWorld’s Hospital Linen Supply & Management Services procurement category market 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. 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, as well as supply and management services pertaining to these products.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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 http://www.ibisworld.com or call 1-800-330-3772.