Application of business model canvas to merchandising sterile supplies from a hub hospital to smaller hospitals in India

Abstract

BackgroundOutsourcing and regionalization of Central Sterile Supply Department (CSSD) could mutually benefit both smaller and bigger hospitals. Larger hospitals with established CSSDs have an opportunity to extend their services to maximize the utilization of their equipment. For outsourcing the sterile supplies department to smaller hospitals, extra capital investment is not required. This study highlights the application of merchandizing sterile supplies from hub hospital with a large CSSD to smaller hospitals. MethodsA prospective observational study is conducted at a hub hospital with return on investment observations as the study tool. Business Model Canvas was used to identify spoke hospitals. Two business options, known as the processing model and the rental model, were proposed to the owners of spoke hospitals. ResultIn both models, the infrastructure of CSSD is owned by the hub hospital. In the processing model, the smaller hospital owns the instruments, and in the rental model, hub hospital supplies instruments, and spoke hospitals pay rent for the instruments. The cost of CSSD building and equipment, sterilizing cost, manpower costs, and transporting costs were considered. In the processing model, the profit to the hub hospital will be 60%, 44%, and 28% annually. In the rental model, we see diminished profit margins of 50%–35%. ConclusionThe smaller hospitals can benefit by avoiding investing in infrastructure, skilled workforce, and space. The bigger hospitals can use their vast existing infrastructure more efficiently and break-even quicker on the initial capital investment.