2. THE CHALLENGE The control of textile inventories poses the largest single problem to potential buyers & users of textile products. There are no viable products or systems on the market today that will assist with the solution to this problem….. Except those offered by PHS!

3. “The central laundry is charging us $.35 a pound, I can get it done for $.25 a pound.” PENINSULA HOSPITAL SERVICES, INC. “The Best of the Past, the Essence of Today, the Wave of the Future”

4. Cost Per Pound Vs Cost Per Patient Day Cost Per Pound is the traditional measure of laundry efficiency. Cost Per Patient Day is more meaningful. The Best Way for a laundry to lower the Cost Per Pound in the attempt to look efficient is to increase poundage in the facilities they serve. Unfortunately, this increases the Cost Per Patient Day!

5. Cost Per Pound Vs Cost Per Patient Day Facilities should not fall into this Cost Per Pound Trap!

6. Cost Containment in Linen Service Bottom Line Cost Has Four Elements. –PROCESSING COST. –LEVEL OF CONSUMPTION. –REPLACEMENT COST. –DISTRIBUTION & COLLECTION. Other laundries have concentrated on productivity & “Cost Per Pound.” Users have not managed consumption.

7. Peninsula Hospital Services, Inc. Newport News, Virginia The PHS Linen Management System Addresses the Bottom-Line Cost of Service

8. Peninsula Hospital Services, Inc. Newport News, Virginia PROCESSING COST –Minimal debt. –Reliable. –Good quality work. –Efficient. LEVEL OF CONSUMPTION –Data Based Management. –Customers are networked on the computer.

9. Peninsula Hospital Services, Inc. Newport News, Virginia LEVEL OF CONSUMPTION (continued) –Linen Use Policies & Procedures. –Hands on In-Facility Management. REPLACEMENT COST –Prospective addition of new linen by Use Area. Credits can be issued for surplus linen. –Adjusts to fluctuations in Census or Workload. –Equitable charging for Linen Replacement. The PHS Linen Management System does not Average Replacement Charges.

10. Peninsula Hospital Services, Inc. Newport News, Virginia DISTRIBUTION & COLLECTION –Willingness to manage In-Facility Systems. –Experience with In-Facility Systems. –Data Based Management. –Use Area deliveries & Mgmt. Info Tracking. SMALL ACCOUNT SERVICES –Smaller trucks. –Immediate Even-Exchange/Credit for surpluses.

11. The PHS Linen Management System An absolute must in order to control linen consumption & to minimize or eliminate linen replacement expenses. The system is a linen control system; not a linen supply system.