How Scripps Health Brewed Up a Plan That Saved $350K

"The 'old' brand 'pod' was 30 cents per cup and with the toppings it equated to 48 cents per cup," Collins says.  "The new coffee is now seven cents per cup.  In addition, we found from our analysis that we were spending $985 per machine per year in rental fees."

Now, each hospital offers only two to three types of coffee, one decaf choice, three teas, and of course creamers and sweeteners. They also looked at areas that needed coffee, just not very much. "In some cases, the cost per cup was significant because an entire carafe would be made for a single cup," Collins says.

"There was debate over the vendor and flavor...We also did a taste test to ensure the coffee and equipment would meet expectations," Collins says. 

The verdict? Collins says the team "was pleasantly surprised... it was actually an improvement over what we were getting before in the 'pods.' People likened the taste of the new coffee to Starbucks.  I personally actually like the new coffee better - we offer a Northwest, Kona, and I believe a French Roast option for brewing."

There was some fallout, as to be expected. Coffee "is a funny thing, and people can get upset over little issues like coffee," Collins says.

For example, at one hospital some physicians were displeased. They "viewed this as an indication of 'respect' and that by not offering 15+ types of coffee, we did not respect them."

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