Case Study: Texas Medical Waste Transitioning from Medical Waste Transporter to Processor

Background 

Texas Medical Waste (TMW) is a well-established company specializing in the collection and transportation of biohazardous medical waste from healthcare facilities to a third-party processing facility.

Challenges

• Profitability: Exorbitant, continuously rising and often unclear waste processing costs set by third-party processors were eating into the bottom line. 
• Competitive Differentiation: TMW didn’t have a way to set itself apart from any other transporter in the industry, so every sale was a battle of price.
• Sustainability Expectations: Hospitals were actively trying to cut GHG emissions and improve sustainability. TMW didn’t have an answer for how to help.
• Lack of Control: Full dependency on third-party processors created a lot of unpredictability. TMW had to abide by any capacity limitations, dropoff time constraints and price hikes set by the processor.

Solution 

Seek out a sustainable, easy-to-operate, cost-effective waste processing system and vertically integrate by bringing waste processing in-house.

The Process

Step 1: Feasibility Study

TMW conducted a feasibility study to assess the market demand, regulatory landscape, community acceptance, and financial implications of transitioning into waste processing. The study revealed a need for another processor in the area. TMW performed an ROI which showed substantial savings while allowing for future growth.

Step 2: Equipment Evaluation

TMW evaluated “alternative technologies” to incineration and autoclaves and chose Clean Waste Systems ozone treatment system. Our investigation revealed CWS’s ozone treatment technology as an emission-free, safe, and effective way of treating infectious waste while using minimal electricity and water. Expected build time was approximately 6 months allowing us site-prep time and initial training on regulatory rules.

Step 3: Regulatory Approval

TMW met with State and Local regulatory authorities to understand the requirements for obtaining a processing license. This process involved a detailed application, site inspection, and an understanding of ongoing compliance reporting. The application was straightforward forward so we did not use a consultant to complete the application. TMW held town halls to meet with the city and local community to provide information on the technology and answer questions. The company received a conditional use permit from the city, and the application was approved by the state.

Step 4: Environmental Considerations

TMW worked with the state and local environmental agencies to assess the impact of our processing operations and the site. The city had measures to minimize emissions, manage wastewater, and ensure compliance with environmental standards. The company held town halls and met with city and neighbors to our facility to provide information on the technology and answer questions. TMW received a conditional use permit from the city to meet local zoning or land use requirements.

Step 5: Financial Needs

TMW worked with our accountant to gather the financial information required by our financial institution. Presented financials and projections to bank and secured a Small Business Loan.

Step 6: Infrastructure Development

TMW invested in its processing facility and equipped it with our state-of-the-art ozone sterilization technology and other safety equipment as required by the regulatory agencies. It was able to transform its existing building into a processing facility.

Step 7: Employee Training

TMW created SOP (standard operating procedures) and organized training sessions for its employees on handling and processing medical waste safely and efficiently. This includes understanding different waste categories, sterilization techniques, and emergency protocols. What is required from OSHA, DOL and other federal and state agencies. CWS provided 5 days of on-site maintenance and operation training to assist in the sessions.

Step 8: Marketing Plan

TMW initiated a marketing program to explain the benefits of our ozone waste processing technology which has garnered increased business. The marketing emphasized enhanced safety, reduced environmental impact by using less natural resources, and a reduction in GHG emissions as a result.

Step 9: Launch & Evaluate

After obtaining regulatory approval and completing all necessary preparations, TMW officially launched its waste treatment process. The company closely monitors operations, gathers feedback from customers and adjusts to optimize efficiency and customer satisfaction.

Conclusion 

By transitioning from a medical waste transporter to a waste processor, TMW not only expanded its service offerings and clientele but also solidified its position as a leader in sustainable waste management.

TMW created competitive differentiation by offering a solution to hospitals seeking sustainable waste processing while reducing costs.