CS Set Business Model
Business ModelBusiness Model
We offer CS (Care Support) Sets, rental services with a fixed daily fee pricing structure that provide clothing, towels, diapers, and daily necessities to hospitalized patients and those staying in senior nursing homes, special nursing homes, fee-based nursing homes, group homes, and care houses (hereinafter “nursing care facilities”).
Renting a CS set greatly reduces the number of items patients and residents (hereinafter, “users”) need to take with them when admitted to hospitals or nursing care facilities. CS sets also make life easier for family members through providing support for users.
The user or his/her family member enters into a contract with the Company for the use of the CS Set, which is provided by the Company, hospitals, nursing care facilities, linen suppliers (businesses that supply linen products such as clothes, towels, sheets, and pillowcases), and daily necessities dealers (linen suppliers and daily necessities dealers hereinafter referred to as “linen/daily necessities suppliers”).
The business structure is shown below.
Elan as primary contractor versus linen/daily necessities suppliers as primary contractor
The CS Set business flow can be broadly divided into two types of transactions, based on differences in contractual arrangements with hospitals, nursing care facilities, and linen/daily necessities suppliers.
■Elan contracts directly with the hospital or nursing care facility (Elan is the primary contractor).
■A linen/daily necessities supplier contracts with a hospital or nursing care facility, and Elan does not form a direct contractual relationship with the hospital or nursing care facility (the linen/daily necessities supplier is the primary contractor).
Benefits of UsersBenefits for Users and Their Families
By using the CS Set, users and their families can reduce the time and effort required for washing and changing clothes and towels and replenishing daily necessities during hospitalization or admission at nursing care facilities, thereby reducing worries for the users and their families.
Another major feature is that the fee is calculated based on the number of days of hospitalization or admission at nursing care facilities rather than the usage of each item. With the fixed daily fee system, users can stay in a hospital or residential facility without them or their families worrying about how often clothes and towels are changed or how much they use daily necessities. We also believe that one of the benefits for the user is that the expenses associated with staying in a hospital or nursing care facility are easy to calculate.
Benefits of HospitalsBenefits for Hospitals and Nursing Care Facilities
Hospitals and nursing care facilities are required to comply with strict administrative guidance from the Ministry of Health, Labour and Welfare when billing users for services that are not covered by insurance. We will provide our CS Set services in a way that conforms to said administrative guidance. The introduction of the services will reduce the workload for nurses and caregivers related to on-site laundry and replenishment of daily necessities. In addition, we outsource the explanation of this service to users, the reception of applications, and the storage of goods to hospitals and nursing care facilities, for which we pay a service outsourcing fee, thereby contributing to an increase in revenue for hospitals and nursing care facilities.
Benefits of Linen suppliersBenefits for Linen/Daily Necessities Suppliers
Linen/daily necessities suppliers contract with hospitals and nursing care facilities to deliver and launder bedding covered by medical insurance and nursing care insurance (futons, futon covers, sheets, pillows, pillowcases). By providing this service, we offer linen/daily necessities suppliers new earning opportunities in the form of leasing and laundry services for daily-use clothing and towels included in CS Sets and sales of daily necessities.
CS Set services provide benefits not only to users and their families, but also to hospitals, nursing care facilities, and linen/daily necessities suppliers, creating win-win-win relationships centered on Elan.