Episode Summary
In this episode of WasteWise, Daniel Nelsen and Aaron Stout delve into the complexities of hospital waste management systems, focusing on the return on investment (ROI) and sustainability. They outline the significant cost factors involved, including initial capital investment and ongoing operational expenses like labor and utility costs. The conversation highlights how newer technologies can enhance efficiency and reduce long-term costs.
Daniel emphasizes the non-financial benefits of managing waste more effectively, such as minimizing risks associated with waste disposal and improving a hospital’s environmental footprint. He points out that waste treatment is not a profit center but a critical cost center that hospitals need to manage proactively to enhance safety and compliance.
Aaron adds to the discussion by exploring potential government incentives for adopting greener technologies. They both agree that understanding the full scope of both financial and environmental impacts is crucial for hospitals considering upgrades to their waste management systems.
BioSAFE Engineering
Daniel A. Nelsen
Chief Commercial Officer
Daniel has a Bachelor’s Degree and a Master’s Degree from Stanford University.
BioSAFE Engineering
Aaron Stout
Director of Sales and Marketing
Aaron has previously worked at Follett LLC, Thermo Fisher Scientific, and Helmer Scientific.
Key Insights
Evaluation of Current Waste Management Costs
The initial step in assessing ROI involves understanding a hospital’s current waste management expenses. That includes evaluating the types of waste generated, current processing methods, and associated costs (such as labor and operational expenses). Hospitals can understand the potential savings and ROI by comparing these with the potential costs of implementing a BioSAFE system.
ROI from Cost Reduction Rather Than Profit Generation
In a hospital setting, waste treatment is a cost center, not a profit center. The focus is on minimizing costs rather than generating profit. Transitioning to a BioSAFE system is seen as a way to reduce these costs, with savings typically calculated in cents per pound of waste processed. The ROI for hospitals, therefore, comes from cost savings and operational efficiencies.
Longevity and Payback Period of BioSAFE Systems
BioSAFE systems are depicted as long-term investments, with some units operating for over 20 years. The expected payback period for these systems ranges from six months to two years, depending on the volume of waste processed and the system’s throughput capacity.
Future Trends and Environmental Considerations
Besides the financial ROI, using BioSAFE systems offers advantages such as reduced risks associated with waste transportation, increased energy efficiency, and sustainability through waste reduction and decontamination. There’s also potential for recycling certain medical waste, contributing to an overall environmental benefit.
Episode Highlights
Exploring Government Grants and Funding Opportunities
Daniel addresses the potential for government grants and other funding opportunities that could support hospitals in adopting more sustainable waste treatment solutions. He shares insights about a recent grant proposal aimed at scaling up a pilot recycling program for medical waste.
“We actually recently partnered with some major industry participants in putting together a Department of Energy grant proposal to do exactly that, to scale up what we had run as a self-funded pilot program.”
Discussing the Impact of Green Initiatives on Hospital Operations
Daniel discusses the broader implications of sustainability efforts within hospitals, particularly how they align with or diverge from the core functions of healthcare facilities. He emphasizes that while green initiatives like waste management are important, they may not garner as much attention as medical advancements.
“For hospitals, it’s often much more impactful and viewed as much more impactful if they’re marketing off of their new surgical wing or their new diagnostic capabilities or the new suite of services or medications or treatments that they’re able to offer that address their core functionality, which is maintaining and improving human health.”
The Realities of Waste Handling and Costs
Aaron highlights the challenges healthcare systems face due to a lack of communication and comparison regarding waste management. He stresses the cost implications and the potential improvements through knowledge sharing.
“Many of the healthcare systems really don’t know. They may not know what technologies are out there. They know that they’re sending waste out the dock, and it’s going to landfill or there’s a charge for that.”
