Here are four tips for managing orthopedic surgery center costs.
1. Consider autografts rather than allografts. Stuart Katz, FACHE, CASC, executive director of Tucson (Ariz.) Orthopaedic Surgery Center, says his ASC saved money by showing physicians the difference in cost between allografts and autografts. "We've actually increased the number of anterior cruciate ligament repairs, and we've gone from almost 80 allografts to under 30 allografts," he says. "So you can imagine the savings there to allograft costs." Especially for younger patients, he says autografts tend to be more appropriate. The physician should ultimately make the decision about whether to use an autograft or an allograft, and only then does Mr. Katz inform them if the insurance will cover it separately.
2. Understand a good benchmark range for dollars of inventory on shelf. Kathleen Whitlow, chief operations offer for Blue Chip Surgical Center Partners, says a range for dollars of inventory on the shelf of an orthopedics-driven ASC will vary based on case volume and whether the ASC has implants brought in case-by-case or keeps them on the shelf.
"The benchmark is center-specific," she says. "A really well run orthopedic-driven ASC keeps a minimum on the shelves, uses consignment or has the representatives bring in what is needed on a per case basis. Our average for orthopedics inventory shelf dollars is about $50,000-$75,000 for ASCs doing 300 cases a month."
3. Stay guarded in vendor relationships. As important as it is to have strong and creative relationships with vendors, it's equally important for ASCs to remain a safe distance from them. Linda Ruterbories, nurse practitioner and director of surgical services at OA Surgery Center in Portland, Maine, says the surgery center doesn't allow vendor representatives free access to the facility. Doing so allows the representatives to roam from physician to physician, which can create problems in the long run.
"Vendors sometimes just wander into clinics or ASCs and ask physicians to try a new plate or screw. Before you know it, that physician is asking the director to purchase that new plate or screw," Ms. Ruterbories says. "We want to control any unfettered purchasing."
4. Cross train employees. Often the workload is too much for one employee to handle yet not enough to justify two, or there are important duties that don't justify a full- or part-time position, says Edward J. Gorz, CPA, accounting manager for MedHQ. In these cases cross training an employee to handle various duties can help cover the bases without stretching the budget.
1. Consider autografts rather than allografts. Stuart Katz, FACHE, CASC, executive director of Tucson (Ariz.) Orthopaedic Surgery Center, says his ASC saved money by showing physicians the difference in cost between allografts and autografts. "We've actually increased the number of anterior cruciate ligament repairs, and we've gone from almost 80 allografts to under 30 allografts," he says. "So you can imagine the savings there to allograft costs." Especially for younger patients, he says autografts tend to be more appropriate. The physician should ultimately make the decision about whether to use an autograft or an allograft, and only then does Mr. Katz inform them if the insurance will cover it separately.
2. Understand a good benchmark range for dollars of inventory on shelf. Kathleen Whitlow, chief operations offer for Blue Chip Surgical Center Partners, says a range for dollars of inventory on the shelf of an orthopedics-driven ASC will vary based on case volume and whether the ASC has implants brought in case-by-case or keeps them on the shelf.
"The benchmark is center-specific," she says. "A really well run orthopedic-driven ASC keeps a minimum on the shelves, uses consignment or has the representatives bring in what is needed on a per case basis. Our average for orthopedics inventory shelf dollars is about $50,000-$75,000 for ASCs doing 300 cases a month."
3. Stay guarded in vendor relationships. As important as it is to have strong and creative relationships with vendors, it's equally important for ASCs to remain a safe distance from them. Linda Ruterbories, nurse practitioner and director of surgical services at OA Surgery Center in Portland, Maine, says the surgery center doesn't allow vendor representatives free access to the facility. Doing so allows the representatives to roam from physician to physician, which can create problems in the long run.
"Vendors sometimes just wander into clinics or ASCs and ask physicians to try a new plate or screw. Before you know it, that physician is asking the director to purchase that new plate or screw," Ms. Ruterbories says. "We want to control any unfettered purchasing."
4. Cross train employees. Often the workload is too much for one employee to handle yet not enough to justify two, or there are important duties that don't justify a full- or part-time position, says Edward J. Gorz, CPA, accounting manager for MedHQ. In these cases cross training an employee to handle various duties can help cover the bases without stretching the budget.