Profile: Healthcare Services Group Inc (HCSG.O)
14 Mar 2014
Healthcare Services Group, Inc., incorporated on November 22, 1976, provides management, administrative and operating services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. The Company operates in two segments: housekeeping, laundry, linen and other services (Housekeeping), and dietary department services (Dietary).As of December 31, 2011, the Company provided its Housekeeping services to approximately 2,900 facilities and provided Dietary services to approximately 600 facilities. As of December 31, 2011, the Company operated two wholly owned subsidiaries, Huntingdon Holdings, Inc. (Huntingdon) and Healthcare Staff Leasing Solutions, LLC (Staff Leasing).
Housekeeping consists of the managing of the client’s housekeeping department which is responsible for the cleaning, disinfecting and sanitizing of patient rooms and common areas of a client’s facility, as well as the laundering and processing of the personal clothing belonging to the facility’s patients. Dietary consists of managing the client’s dietary department, which is responsible for food purchasing, meal preparation and providing professional dietician consulting services, which includes the development of a menu that meets the patient’s dietary needs.
During the year ended December 31, 2011, housekeeping represented approximately 50% its revenues. This service involves the management of the client’s housekeeping department, which is responsible for the cleaning, disinfecting and sanitizing resident areas in its clients’ facilities. In providing services to any given client facility, it hires and train the hourly employees employed by such facility prior to its engagement. It assigns two on-site managers to each facility to supervise and train hourly personnel and coordinate housekeeping services with other facility support functions in accordance with the direction provided by the client facility’s administrator. Such management personnel also oversee the execution of a range of procedures, including continuous training and employee evaluation and on-site testing for infection control. The on-site management team also assists the facility in complying with federal, state and local regulations.
During 2011, laundry and linen services represented approximately 24% of consolidated revenues. Laundry services are under the responsibilities of the housekeeping department and involve the laundering and processing of the residents’ personal clothing. It provides laundry services to its housekeeping clients. Linen services involve providing, laundering and processing of the sheets, pillow cases, blankets, towels, uniforms and assorted linen items used by its clients’ facilities. At some facilities that utilize its laundry and linen services, it installs its own equipment. The hiring, training and supervision of the hourly employees who perform laundry and linen services are similar to, and performed by the same management personnel who oversee the housekeeping services hourly employees located at the respective client facility. In some instances it owns linen supplies utilized at its clients’ facilities and therefore, maintain an inventory of linen supplies to ensure their availability.
Maintenance services consist of repair and maintenance of laundry equipment, plumbing and electrical systems, as well as carpentry and painting. It (as a distributor of laundry equipment) sells laundry installations to its clients, which represents the construction and installation of a turn-key operation. It offers payment terms, ranging from 36 to 60 months.
During 2011, dietary services represented 26% of consolidated revenues. Dietary consists of managing the client’s dietary department, which is responsible for food purchasing, meal preparation and providing professional dietician consulting services, which includes the development of a menu, which meets the patient’s dietary needs. On-site management is responsible for all daily dietary department activities, with regular support being provided by a district manager specializing in dietary services, as well as a registered dietitian. It also offers consulting services to facilities to assist them in cost containment and to promote improvement in their dietary department service operations.
Healthcare Services Group Inc
Suite 300, 3220 Tillman Drive
BENSALEM PA 19020