Page 4 - An Overview for VIC Health Executives

4
DO YOU KNOW THE COST OF C
How much will it rise over the next 5 years, if you
The first concept to understand is how much your cleaning will cost over the next 5 years
if you don’t change anything
• This is an example of a 540 bed hospital with 70 FTE (full time equivalent) cleaners
• With $230,000 in consumables approximately 95% of their costs are labour or labour related
• Based on a CPI of only 3% this site will incur an increase in cost of $3.3M over the next 5 years
CPI
INCREASE IN LABOUR COST
LABOUR
CONSUMABLES
TOTAL ANNUAL COSTS IF NO CHANGE INCREASE OVER LAST YEAR
ACC INCREASE IF WE CHANGE NOTHING
An increase of over $3.3 million over the next 5 years
• It is highly likely that increases in labour costs will be much higher than this with many requiring to pay 10-15% more to attract staff
• The best way to give our cleaners a pay rise is to start measuring and improving productivity
• With these increases compounding it is essential that you start this year, allowing you to make much more headway over the years ahead.
3% 5%
2024
$6,711,484 $230,000 $4,816,040
FY25
$201,345 $6,912,829 $241,500 $7,154,329
$212,845
FY26
$207,385 $7,120,213 $253,575 $7,373,788 $219,460
NO CHANGE
$212,845
$432,304
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