U. wants to send its dirty laundry to IHC

The University of Utah wants to pay Intermountain Health Care about $28 million over 10 years to clean its hospital's and clinics' dirty laundry — around 6.5 million pounds per year.

While it's only laundry, U. officials see contracting with IHC for noncompetitive services as yet another partnership opportunity with what would otherwise be its rival.

The U. Board of Trustees recently approved entering into a three-year pilot program with IHC worth $7.5 million, with the option to extend the contract with IHC for another 10 years.

The U. laundry facility that serves its hospital and clinics is considered undersized at 8,400 square feet, operating nonstop just to keep up, according to Dan Lundergan, executive director of University Health Care Hospitals & Clinics.

It costs the U. more than $2 million a year to run its laundry services — or 32 cents per pound — and it would cost another $2 million or $3 million to build a new, bigger facility. So, it's either build new or contract with IHC for just over 35 cents per pound of laundry.

"We felt like it was a reasonable thing for us to do," said Gordon Crabtree, chief financial officer for University Health Care Hospitals & Clinics.

Once both sides reach an agreement, the U. would be ready to start sending its laundry to an IHC facility in Woods Cross by April 2006.

Crabtree said the laundry deal between the U. and IHC has been in the works for about one year, with several meetings between key officials from both sides.

But U. leaders say this is about more than just dirty bed linens and scrubs.

It's a move U. officials see as an opportunity to further relationships between high-level executives within both health-care systems, which could lead to more partnerships.

"We're not going to be firing anyone," said Lundergan, who helped start and worked in the U. laundry facility 31 years ago.

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