Are you currently using in-house drivers?
The demand for hospital, laboratory and pharmacy services is driven by advances in medical care and technology. The profitability of individual companies depends on efficient operations, since many hospitals and labs offer similar services. Labor is often the single largest operating expense usually equal to more than 40% of revenue.
To remain healthy in the current economy, management at all levels in the medical industry must face the brutal facts and act decisively. Hospitals and labs who have long had in-house drivers are now willing to consider out-sourcing their logistic needs… And those utilizing a courier now are asking for competing bids.
Now is the time for a careful review of all costs and a willingness to explore new options. Providing these services in-house is often the most expensive choice in transportation needs. Outsourcing of a non-core function like logistics to a competent medical-specific courier can save a hospital system or lab 15-20% while maintain quality patient care.
MLS is dedicated to helping you achieve your patient care goals, balanced with financial performance. We would be happy to provide a free review of your delivery needs and determine if outsourcing is a valuable benefit to you.
The below is a tool to help you capture all the relevant costs of in-house drivers.
Per Driver Cost Calculation for a Typical In-House Driver Plus Vehicle
| Payroll: | Monthly: | Notes: |
|---|---|---|
| Driver Pay | $1472.00 | $8/hr x 8 hrs x 23 days (M-F) |
| Social Security | $112.61 | 7.65% |
| Workers Comp | $154.56 | 10.50% |
| Health Benefits | $200.00 | EE only — no Family coverage |
| PTO | $28.85 | I week per year |
| Other Taxes/Benefits | $29.44 | SUTA/FUTA |
| $1,997.45 | ||
| Vehicle: | ||
| Lease | $500.00 | |
| Insurance | $200.00 | |
| Maintenance | $200.00 | |
| Fuel | $600.00 | $2.50/gal x 200 miles/day x 20mpg |
| $1500.00 | ||
| Other Expenses: | ||
| Cell Phone | $50.00 | |
| Uniforms | $10.00 | |
| Lead Driver/Manager | $250.00 | $2000/month spread across 8 routes |
| $310.00 | ||
| Total | $3807.45 | per month per FTE with vehicle |
Note: Other costs difficult to allocate
Management’s time to supervise particularly when not running smoothly
Human Resources/Payroll administration which is usually a cost borne by other departments within a larger organization
Vehicle down time due to on-road break downs, auto accidents and scheduled maintenance
Liability exposure of having vehicles on the road/ risk of large claims
Are you currently using outside couriers?
There are many outside courier services that promote their ability to make medical deliveries but what makes us different from other outside courier services?
We ONLY deliver items for the medical community.
Because your patients deserve not to be placed in priority after an auto parts delivery… We do not deliver lost airport luggage, auto parts, legal filings, real estate documents and other non-medical packages. We specialize in the STAT and same-day delivery needs of the medical community.
All of our locations are part of OUR company system.
We are not a network of independent separate companies that consolidate business through courier brokerages. We work as one company with centralized dispatch, billing, training and process controls.
Our drivers are our employees NOT independent contractors.
Despite an industry norm of utilizing independent contractors, we pride ourselves in that our drivers are our employees which allows us to have greater control over their appearance, the order and timeliness of deliveries and training that they receive.