One of the greatest resources for surgery center administrators is the experience and advice of their peers. Here seven surgery center administrators share cost-cutting tips that have benefited their facilities.
1. Review your packs. Jennifer Hunara, administrator of the Surgery Center of Allentown in Allentown, Pa., says her biggest cost-savings initiative this year was performing a review of the surgery center's packs. "After four years in business, we hadn't done research to see if we could not only get them cheaper from another vendor, but also look at the contents of each pack to see if any items could be added or deleted." She says the surgery center managed to save $56,000 through this initiative.
2. Hold a "relationship meeting" with your bank. Joan Shearer, administrator of Lawrence (Kan.) Surgery Center, says she schedules a "relationship meeting" with her bank annually to identify new cost savings programs, reduce bank fees and explore investment opportunities and refinancing opportunities. "Every year, I am able to find some saving," she says.
3. Form a list of cost-effective implants. Dale Holmes, administrator of Warner Park Surgery Center in Chandler, Ariz., says his surgery center has a formulary committee headed by a member of the medical executive committee. The committee has approved a list of cost-effective implants, and if a physician wants to bring a case with high-priced implants to the center, it has to be approved by the committee chairperson. "Even if it's a contracted insurer, we can deny it and have it taken to the hospital if the implant is not approved," he says. "Many insurers don't want to cover implants, so it ends up costing them more as it's done in a hospital."
4. Use a pre-certification tool. Laurie Simon, administrator of Western Reserve Surgery Center in Kent, Ohio, has brought her center's revenue cycle under control by purchasing a pre-certification tool, Encircle, and processing patient payments through e-PAY. "Encircle helps us know what the patient responsibility is before they come in," she says. "e-PAY allows patients to pay online and set up payment plans under the parameters that we set up for automatic payment withdrawal from a credit card or checking account, with notification if they default on a payment," she says.
5. Pre-screen patients for co-payments. Stuart Katz, director of TMC Orthopaedic Outpatient Surgery in Tucson, Ariz., says pre-screening patients for co-payments and contacting them ahead of surgery to discuss financial responsibility has saved money for his ASC.
"[We contact them] ahead of surgery, both via telephone and mail, to discuss their expected out-of-pocket expenses and make arrangements to collect them before or on the day of surgery," he says. "This has saved us a ton of money, as we are not chasing them for their portion after being paid by the insurance company." He says if the actual payment is within $25 of what the surgery center estimated, they do not pursue the extra dollars due from the patient.
6. Implement online registration. Becky Ziegler-Otis, administrator of the Ambulatory Surgical Center of Stevens Point (Wis.), says her surgery center implemented online registration for patients this year. "This helped with the efficiency of registration and reduced the workload for the RNs," she says. "We were able to not replace a 0.8 FTE for nursing as a result of the efficiency with this product."
7. Find a good purchasing agent. According to Tona Savoie, administrator of Bayou Region Surgical Center in Thibodaux, La., her biggest cost-efficiency strategy is a good purchasing agent. "I cannot stress enough how important it is to have a single person designated for purchasing that is organized, aware and aggressive," she says. "Vendors will change pricing with no notice, and physicians will use items twice the price of other items without knowing. A good purchasing agent constantly keeps a watchful eye on daily activities with supplies and vendors."
She says keeping vendors competitive also helps surgery centers achieve the best possible price. "It's amazing how prices can change overnight with the use or non-use of a product," she says.
Related Articles on ASC Turnarounds:
6 Steps to Prepare for the Future of Outpatient Spine Surgery
20 States With Highest Physician Retention Rates
6 Benchmark Goals for ASCs to Meet or Exceed in 2012
1. Review your packs. Jennifer Hunara, administrator of the Surgery Center of Allentown in Allentown, Pa., says her biggest cost-savings initiative this year was performing a review of the surgery center's packs. "After four years in business, we hadn't done research to see if we could not only get them cheaper from another vendor, but also look at the contents of each pack to see if any items could be added or deleted." She says the surgery center managed to save $56,000 through this initiative.
2. Hold a "relationship meeting" with your bank. Joan Shearer, administrator of Lawrence (Kan.) Surgery Center, says she schedules a "relationship meeting" with her bank annually to identify new cost savings programs, reduce bank fees and explore investment opportunities and refinancing opportunities. "Every year, I am able to find some saving," she says.
3. Form a list of cost-effective implants. Dale Holmes, administrator of Warner Park Surgery Center in Chandler, Ariz., says his surgery center has a formulary committee headed by a member of the medical executive committee. The committee has approved a list of cost-effective implants, and if a physician wants to bring a case with high-priced implants to the center, it has to be approved by the committee chairperson. "Even if it's a contracted insurer, we can deny it and have it taken to the hospital if the implant is not approved," he says. "Many insurers don't want to cover implants, so it ends up costing them more as it's done in a hospital."
4. Use a pre-certification tool. Laurie Simon, administrator of Western Reserve Surgery Center in Kent, Ohio, has brought her center's revenue cycle under control by purchasing a pre-certification tool, Encircle, and processing patient payments through e-PAY. "Encircle helps us know what the patient responsibility is before they come in," she says. "e-PAY allows patients to pay online and set up payment plans under the parameters that we set up for automatic payment withdrawal from a credit card or checking account, with notification if they default on a payment," she says.
5. Pre-screen patients for co-payments. Stuart Katz, director of TMC Orthopaedic Outpatient Surgery in Tucson, Ariz., says pre-screening patients for co-payments and contacting them ahead of surgery to discuss financial responsibility has saved money for his ASC.
"[We contact them] ahead of surgery, both via telephone and mail, to discuss their expected out-of-pocket expenses and make arrangements to collect them before or on the day of surgery," he says. "This has saved us a ton of money, as we are not chasing them for their portion after being paid by the insurance company." He says if the actual payment is within $25 of what the surgery center estimated, they do not pursue the extra dollars due from the patient.
6. Implement online registration. Becky Ziegler-Otis, administrator of the Ambulatory Surgical Center of Stevens Point (Wis.), says her surgery center implemented online registration for patients this year. "This helped with the efficiency of registration and reduced the workload for the RNs," she says. "We were able to not replace a 0.8 FTE for nursing as a result of the efficiency with this product."
7. Find a good purchasing agent. According to Tona Savoie, administrator of Bayou Region Surgical Center in Thibodaux, La., her biggest cost-efficiency strategy is a good purchasing agent. "I cannot stress enough how important it is to have a single person designated for purchasing that is organized, aware and aggressive," she says. "Vendors will change pricing with no notice, and physicians will use items twice the price of other items without knowing. A good purchasing agent constantly keeps a watchful eye on daily activities with supplies and vendors."
She says keeping vendors competitive also helps surgery centers achieve the best possible price. "It's amazing how prices can change overnight with the use or non-use of a product," she says.
Related Articles on ASC Turnarounds:
6 Steps to Prepare for the Future of Outpatient Spine Surgery
20 States With Highest Physician Retention Rates
6 Benchmark Goals for ASCs to Meet or Exceed in 2012