The costs of doing business continue to soar for ASCs, while Medicare and private payer reimbursements continue to decrease.
Here's five ways that ASC leaders are fighting the imbalance in the industry.
1.) Optimizing workflow. Reducing operational costs is one side of the balance sheet for ASCs. AI can assist with administrative work often associated with extra labor costs or additional burdens for physicians. Robotic or robot-assisted surgeries can also help improve efficiency. The ability of these technologies to improve clinical detection ultimately increases an ASC's capacity for procedures. At Chicago-based Northwestern Medicine, for example, physicians who used AI to perform colonoscopies saw a 13% increase in colorectal polyps detection.
2.) Supplier rate negotiations. Another item on the cost-cutting side of the balance sheet where some physicians have found success is negotiating better rates with their medical suppliers.
"I work on this daily to find the best pricing for our medical supplies as well as all our equipment repair costs," Bill Rhoades, COO of Harrisburg (Pa.) Endoscopy and Surgery Center, told Becker's. It never hurts to contact your suppliers to work out better rates for supplies and repairs. Companies that want to keep your business will usually try and help, and being a loyal customer should always count in negotiations.
3.) Offering lower cost, high-yield procedures. Diversifying the services offered at an ASC can help create a reliable cash flow.
"Offering a multitude of lower-cost yet higher-yield procedures, like GI services or procedures, can help increase the profitability of a practice by increasing revenues and diversifying revenue stream," Shakeel Ahmend, MD, gastroenterologist and CEO of Atlas Surgical Group (St. Louis) told Becker's.
4.) Communication is key. For some, ensuring that all staff –– from assistants to surgeons –– are on the same page about costs can make a difference for an ASC's bottom line.
"Surgeon communication on costs should increase, and exercises such as case-costing and benchmarking are key. This can also occur with staff, encouraging them to not open supplies and implants until they are needed, and potentially rewarding staff for cost savings with a bonus pool," Greg DeConciilis, administrator of Boston Out-Patient Surgical Sites, told Becker's. "Your materials manager personnel should encourage competition among vendors and trial new products that achieve cost savings."
5.) Negotiating with payers when possible. While some physicians express frustration with the lack of communication on the part of payers, others have succeeded in negotiating directly with payer groups. If it's financially viable, some say hiring a consultant to assist with payer talks can prove to be a worthy investment.
"In regards to decreasing reimbursement, I would argue that hiring a consultant to analyze your contracts and attempt to renegotiate your contracts … can be an effective cost-conscious exercise," said Dr. DeConciilis. "It may be costly to perform this analysis and negotiation, but on the back end, it can be exponentially beneficial."