Lisa Austin, RN, CASC, is vice president of ASC operations for Pinnacle III.
Q: Our ambulatory surgery center has determined that we're spending too much on salaries. What are some options we have to reduce this cost without damaging staff morale?
Lisa Austin: Answering this question actually begs several other questions:
- How is the staff being utilized?
- How are low census days utilized?
- Have work hours become an entitlement for part-time and PRN staff rather than employed as intended (on an as-needed basis)?
- Has an analysis of staff productivity been undertaken?
- Is there a defined process for establishing staff salaries upon hire and for subsequent increases? Has that process been adhered to or has the process been haphazard and inconsistent?
- Is the staff leased from a third party (i.e., a hospital, management company or PEO)? If so, what is the mark-up?
After answering those questions and making the management decisions required by the answers, there are other options to consider.
If the center is performing poorly, consider freezing wages for a year or two until the situation gets better. Many ASCs and hospitals across the country have had to employ this tactic due to the current economic conditions.
Offer no merit increases for the year. Instead, implement a profit sharing plan.
Determine if it's feasible to make sacrifices in the area of benefits to reduce the overall cost of doing business.
Perform a market survey for similar staff. If the center is high compared to the market, adjust wages and salaries for incoming staff to avoid perpetuating the problem.
Learn more about Pinnacle III.
Read more from Pinnacle III:
- 6 Critical Components for Surgery Center Strategic Planning
- Pinnacle III Announces Opening of Wisconsin Surgery Center in Wausau
- Proven Strategies for Surgery Centers to Work With GPOs