Kimberly Tude Thuot, administrator of Yakima (Wash.) Ambulatory Surgical Center, a three-OR, physician-owned multispecialty facility with about 30 full-time and part-time employees, lists six key ways she has worked to make her ASC more profitable.
1. More surgeons. The ASC recruited two new orthopedic surgeons from a large orthopedic group in town, several of whom already used the facility. More members of this group may follow. In addition, the center recruited its first neurosurgeon from among several who recently left hospital employment, and another of them has asked for a credentialing application.
2. More procedures. Adding neurosurgery brings in high reimbursements. The center already had some equipment for neurosurgery because an orthopedic surgeon was performing spine surgery there, but Ms. Tude Thuot is exploring the purchase of a C-arm next year. The ASC also plans to add laparoscopic gastric band surgery once general surgeons at the facility have completed training in it.
3. Renegotiating insurance contracts. The ASC employed an outside contractor, Eveia Health Consulting & Management, to renegotiate the insurance contract. "It was a better deal to employ the experts than do it myself," Ms. Tude Thuot says. The payor contracts are still being negotiated. Meanwhile, the ASC is raising its fee schedule for next year.
4. Monitoring supply costs. "Keeping your supply costs down is a huge part of being profitable," Ms. Tude Thuot says. The ASC examines costs monthly to determine any big changes. Also, surgeons planning an unusual procedure involving supplies that have to be ordered know they need to contact staff in advance so they can research the most cost effective pricing.
5. Flexible staffing. "Personnel is one the biggest cost items for a surgery center," Ms. Tude Thuot says. The ASC has a core group of full-time staff and several per diem workers who come in one day a week. For example, one per-diem does only ophthalmology cases and also works at other facilities. "They are comfortable with coming in on an as-needed basis," she says. "When we hire them, we ask if they can do that."
6. Brought billing in-house. "There are many excellent billing companies out there, it is up to the administrator to decide whether to outsource or not," Ms. Tude Thuot says. "I decided to bring our billing in-house." This involved hiring a certified coder and an additional billing person and buying some software applications.
"The nice thing is you can keep your finger on the pulse," she says. "When a surgeon asks a question, there is someone in-house to answer it." Once the program is established, "we expect huge cost-savings," she says.
Read more practical guidance to boost ASC profitability:
- 5 Things Large ASCs Can Do to Stay Profitable
- 12 Ways to Immediately Improve Profitability of an ASC
- 4 Steps to Effectively Bring New Surgeons on Board