At the 11th Annual Orthopedic, Spine and Pain Management-Driven ASC Conference in Chicago on June 13, two presenters — John Pruitt, vice president of procurement solutions for Provista, and Rob Haze, administrator of the Institute for Orthopaedic Surgery in Las Vegas — shared ways ambulatory surgery centers can be smarter in their purchasing decisions.
Mr. Pruitt and Mr. Haze narrowed down improved supply chain operations to three main points.
1. Obtain a materials management information system. Mr. Pruitt said data is the most important tool ASC managers can utilize to save money and reduce costs in their supply and purchasing chain. How can ASCs get supply data? Mr. Pruitt recommended they obtain a web-based materials management information system, which is not a significant expense and helps ASCs ensure they are paying the right amounts to vendors.
Mr. Haze added that his facility has a MMIS, and the system helped him and others identify several ways their supply chain was broken. "We were being duplicate billed for the same items and billed at higher prices than what we ordered," he said. "While we had caught some of those [before having a MMIS], we left something on the table by not having it in there sooner."
2. Have at least one staff person dedicated to the supply side. The two presenters said many ASCs don't have a full-time materials management/supply chain person on staff, but having one FTE solely dedicated to finding cost savings on the supply side could "pay huge dividends," Mr. Pruitt said.
3. Know the margin on every case. ASC managers should perform routine benchmarking and case costing, which is determining the cost of every case in the facility. Having this data on hand will make it easier to know what ASCs can afford in the future and what cases are going over budget.
"Know your margin on every case," Mr. Pruitt said. "It's challenging, but it's something that should be narrowed down."
Mr. Pruitt and Mr. Haze narrowed down improved supply chain operations to three main points.
1. Obtain a materials management information system. Mr. Pruitt said data is the most important tool ASC managers can utilize to save money and reduce costs in their supply and purchasing chain. How can ASCs get supply data? Mr. Pruitt recommended they obtain a web-based materials management information system, which is not a significant expense and helps ASCs ensure they are paying the right amounts to vendors.
Mr. Haze added that his facility has a MMIS, and the system helped him and others identify several ways their supply chain was broken. "We were being duplicate billed for the same items and billed at higher prices than what we ordered," he said. "While we had caught some of those [before having a MMIS], we left something on the table by not having it in there sooner."
2. Have at least one staff person dedicated to the supply side. The two presenters said many ASCs don't have a full-time materials management/supply chain person on staff, but having one FTE solely dedicated to finding cost savings on the supply side could "pay huge dividends," Mr. Pruitt said.
3. Know the margin on every case. ASC managers should perform routine benchmarking and case costing, which is determining the cost of every case in the facility. Having this data on hand will make it easier to know what ASCs can afford in the future and what cases are going over budget.
"Know your margin on every case," Mr. Pruitt said. "It's challenging, but it's something that should be narrowed down."
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