Understanding the Total Cost of Furniture Ownership

When evaluating purchases and attempting to understand the total cost of furniture ownership, there are more factors than many realize. Below are just a few you should consider when evaluating your alternatives.

Image1_TotalCostReplacement or Refinishing Costs

On average, wood products need to be replaced every 5-7 years due to joint failure, breakages or the unsightly appearance of dings & scuffs. Kwalu products are Designed to Last® and come with a 10 year warranty.  Over the course of multiple years, the cost savings are obvious. Replacing furniture isn’t something you should have to worry about.

Medicare Reimbursement Penalties & Liability Costs Resulting from HAIsImage2_TotalCost

An estimated 20-40%(1) of Hospital Acquired Infections (HAIs) are spread from contaminated surfaces such as chairs, tables, walls and case goods.  By choosing a furniture material that does not foster the growth of bacteria and is easier to clean, you can save serious money on Medicare reimbursement penalties.

According to data from the Centers for Medicare and Medicaid Services, 724 hospitals suffered a 1% penalty for all discharges occurring after Oct. 1, 2014, totaling $330 Million. In addition to penalties, there are increased liability and litigation costs resulting from HAIs.

These can be prevented simply by making smarter furniture choices.

Human Cost, Not Just Financial

While there is the obvious financial costs related to HAIs, there is also the human factor. There are 75,000 deaths related to Hospital-Aquired conditions  each year (more than Breast & Prostate Cancer combined).  By simply switching from wood furniture to an option like Kwalu, you can make a difference in saving lives.

Image3_TotalCostLost Opportunity Costs Due to a Bad First Impression

First impressions are everything. The unprofessional look of dinged or scuffed tables & chairs can leave a negative impression on potential residents or patients.  Not only could you be losing potential direct revenue, you can’t measure the impact of negative word of mouth.

Beyond the upfront purchase cost, there are several factors that should be analyzed before making a furniture purchase decision in Senior Living and Healthcare environments. These costs not only affect the financial bottom and top line, but lives as well.

 

1.) Source: Association for Professionals in Infection Control and Epidemiology

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