Here are five ways to effectively lower orthopedic device costs at your surgery center.
1. Work with vendors to lower costs on orthopedic devices. Jaime Wilber, director of nursing at Ashtabula (Ohio) Surgery Center, says working with a knowledgeable representative from a vendor company allowed her ASC to add a hip arthroscopy procedure in a cost-effective manner. This also gave the nursing staff a chance to learn how to use the equipment through hands-on tutorials with vendor representatives, rather than leaving staff members to spend precious time learning how to use it on their own.
"We called the vendor, who gave us a great break on the prices of the instruments we needed for the procedure," she says. "They came out and talked with our nurses, who would be assisting in those cases, to show them how to use the instruments and also came on the day of scheduled hip arthroscopy surgeries in case something might go wrong with the equipment. The key is we only contact vendors that are knowledgeable and trained in the specialty and in the equipment they work with, and we won't talk to any vendors that aren't."
2. Establish cost-saving policies with physicians. As soon as a physician expresses interest in your center, make it clear that your ASC regularly evaluates supply costs and looks for cheaper alternatives. "Tell them that [certain supplies] are expensive and you're always going to compare them and look at quality, frequency and cost," says Sandy Berreth, administrator of Brainerd Lakes Surgical Center in Baxter, Minn. If you establish this expectation right away, you will likely have less trouble convincing physicians to switch to cheaper alternatives.
If the surgeons aren't cooperative in compromising cost-saving alternatives, provide them with comparative prices. At your surgeons' regular meeting, Ms. Berreth recommends posting data on frequency and cost for supplies. Supply frequency details how often a certain item is used, while supply cost details how much the supply and its potential alternatives cost. The physicians can manage the "quality" portion through discussing the clinical value of a certain brand. Posting this kind of information at your regular meetings gives a clear picture of which supplies are most valuable and most used at your center, as well as which supplies are purchased and then left to sit on the shelf.
3. Take advantage of free trials. Surgery centers can actively pursue free trials of equipment and supplies before committing to a big purchase. "We're always open to hearing what new product a vendor may have, especially if it's at a lower cost than one we're already using," Ms. Wilber says. "One time, we had a vendor come in with a new product for rotator cuff repair, and we asked to try them for free. After one of our orthopedic physicians tried them out, we agreed to purchase the implants from that vendor."
In aggressively pursuing better deals with different vendors, Ms. Wilber says there may at times be an added incentive in the form of free accompanying equipment to go with the purchase. "There's equipment a physician needs to drill holes to put the shoulder cuff implant into place," she says. "After we purchased the new implants for rotator cuff repair, they gave us the accompanying equipment for free."
4. Standardize implants and purchase equipment packs. The impetus for standardization should come from the implant committee, made up of surgeons at the center. "The physicians built the center 10 years ago partly because they wanted to use the products they chose to use," says John Brock, administrator of NorthStar Surgical Center in Lubbock, Texas, a Symbion facility. "In their facility they need to be involved in the decision-making process." Another way to keep supply costs low is to purchase custom packs for surgery rather than buying each item separately.
5. Keep inventory low. Linda Ruterbories, nurse practitioner and director of surgical services at OA Surgery Center in Portland, Maine, says overstocking shelves with inventory is a surefire way to tie up those precious dollars. She entered into a working agreement with vendors, who agreed to house supplies at a nearby warehouse so the center would not have to pay expenses for overnight delivery of supplies.
"The vendors promise to have a certain level of inventory stored away in those warehouses, so in case we have any weather-related or back-order problems, the center avoids the risk of being low on supplies needed to run the facility," he says. "On the other hand, that also means we are not paying double the cost to have extra inventory."
1. Work with vendors to lower costs on orthopedic devices. Jaime Wilber, director of nursing at Ashtabula (Ohio) Surgery Center, says working with a knowledgeable representative from a vendor company allowed her ASC to add a hip arthroscopy procedure in a cost-effective manner. This also gave the nursing staff a chance to learn how to use the equipment through hands-on tutorials with vendor representatives, rather than leaving staff members to spend precious time learning how to use it on their own.
"We called the vendor, who gave us a great break on the prices of the instruments we needed for the procedure," she says. "They came out and talked with our nurses, who would be assisting in those cases, to show them how to use the instruments and also came on the day of scheduled hip arthroscopy surgeries in case something might go wrong with the equipment. The key is we only contact vendors that are knowledgeable and trained in the specialty and in the equipment they work with, and we won't talk to any vendors that aren't."
2. Establish cost-saving policies with physicians. As soon as a physician expresses interest in your center, make it clear that your ASC regularly evaluates supply costs and looks for cheaper alternatives. "Tell them that [certain supplies] are expensive and you're always going to compare them and look at quality, frequency and cost," says Sandy Berreth, administrator of Brainerd Lakes Surgical Center in Baxter, Minn. If you establish this expectation right away, you will likely have less trouble convincing physicians to switch to cheaper alternatives.
If the surgeons aren't cooperative in compromising cost-saving alternatives, provide them with comparative prices. At your surgeons' regular meeting, Ms. Berreth recommends posting data on frequency and cost for supplies. Supply frequency details how often a certain item is used, while supply cost details how much the supply and its potential alternatives cost. The physicians can manage the "quality" portion through discussing the clinical value of a certain brand. Posting this kind of information at your regular meetings gives a clear picture of which supplies are most valuable and most used at your center, as well as which supplies are purchased and then left to sit on the shelf.
3. Take advantage of free trials. Surgery centers can actively pursue free trials of equipment and supplies before committing to a big purchase. "We're always open to hearing what new product a vendor may have, especially if it's at a lower cost than one we're already using," Ms. Wilber says. "One time, we had a vendor come in with a new product for rotator cuff repair, and we asked to try them for free. After one of our orthopedic physicians tried them out, we agreed to purchase the implants from that vendor."
In aggressively pursuing better deals with different vendors, Ms. Wilber says there may at times be an added incentive in the form of free accompanying equipment to go with the purchase. "There's equipment a physician needs to drill holes to put the shoulder cuff implant into place," she says. "After we purchased the new implants for rotator cuff repair, they gave us the accompanying equipment for free."
4. Standardize implants and purchase equipment packs. The impetus for standardization should come from the implant committee, made up of surgeons at the center. "The physicians built the center 10 years ago partly because they wanted to use the products they chose to use," says John Brock, administrator of NorthStar Surgical Center in Lubbock, Texas, a Symbion facility. "In their facility they need to be involved in the decision-making process." Another way to keep supply costs low is to purchase custom packs for surgery rather than buying each item separately.
5. Keep inventory low. Linda Ruterbories, nurse practitioner and director of surgical services at OA Surgery Center in Portland, Maine, says overstocking shelves with inventory is a surefire way to tie up those precious dollars. She entered into a working agreement with vendors, who agreed to house supplies at a nearby warehouse so the center would not have to pay expenses for overnight delivery of supplies.
"The vendors promise to have a certain level of inventory stored away in those warehouses, so in case we have any weather-related or back-order problems, the center avoids the risk of being low on supplies needed to run the facility," he says. "On the other hand, that also means we are not paying double the cost to have extra inventory."