Let’s provide a basic example of this in practice:
Below provides the cost of three mobile hoists with various price ranges. One may be easier to use, feel more supportive and safe, and be of better quality. However, they will all still work to their intended purpose – to lift someone.
However, if you were to use a cheaper hoist, regularly, every day, it will probably only last you 2 – 3 years. Whereas a more expensive hoist could last you 7+ years.
From this scenario*, you can simply work out how much the hoist could cost you per year:
*This basic calculation is based on ownership cost only and doesn’t consider the operational costs of the hoist
£692 / 3 years = £230.66 per year
£1065 / 7 years = £152.14 per year
£2043 / 7 years = £291.56 per year
Here you can see you might get better value over the lifetime of the equipment, by purchasing a mid-range mobile hoist vs the others. This is where you’d then weigh up the requirements for the hoist and whether it meets them.
Even though this is a simple example, hopefully, it highlights that the whole life cost considers the investment over the full lifespan of the equipment, rather than just the upfront cost.
Once healthcare organisations grasp the concept of whole life costs, it will better enable them to plan ahead of time and manage their total costs efficiently. This means you can predict when operational costs might become a burden and put lifecycle replacement plans in place.