According to Marc Jang, vice president of market development for Titan Health Corp., ASCs under financial strain are usually forced to make cuts in the two most expensive items in their budgets: staffing and supplies. He says while financial cutbacks are understandable and necessary, he warns ASCs to be careful when cutting staff hours to save money.
"It's not like you have 100 employees at one center like in a hospital," he says. "Cutting staff hours may be a strategy to safe money, but sometimes it can result in an unintended negative consequence."
He says ASCs should consider the fact that each staff member's personal financial situation will be different. "Generally ASCs that need to save money get this feeling that it's all for one and one for all," he says. "They decide that everybody will cut back and reduce hours, and while I applaud the teamwork and solidarity of that decision, the reality is that some people will be [more adversely affected] than others." He says if the announcement is made to the entire ASC staff at once, people with financial difficulties may be reluctant to speak up for fear of seeming selfish.
"Those people may take it upon themselves to look for alternative employment opportunities, and the next thing you know, you lose a key employee," he says.
Instead of making group announcements about salary cuts, call each staff member into the administrator's office and inform them individually about the plan, he says. Let them know that decisions are still being made, then gauge their reaction. If you make it clear you will keep their concerns private, staff members may be more likely to voice issues about the effect of salary cuts.
Learn more about Titan Health Corporation.
Read more critical ASC mistakes:
-Critical ASC Mistake: Physician Owners Using the ASC as a Bank
-Critical ASC Mistake: Making Impulse Supply Purchases
"It's not like you have 100 employees at one center like in a hospital," he says. "Cutting staff hours may be a strategy to safe money, but sometimes it can result in an unintended negative consequence."
He says ASCs should consider the fact that each staff member's personal financial situation will be different. "Generally ASCs that need to save money get this feeling that it's all for one and one for all," he says. "They decide that everybody will cut back and reduce hours, and while I applaud the teamwork and solidarity of that decision, the reality is that some people will be [more adversely affected] than others." He says if the announcement is made to the entire ASC staff at once, people with financial difficulties may be reluctant to speak up for fear of seeming selfish.
"Those people may take it upon themselves to look for alternative employment opportunities, and the next thing you know, you lose a key employee," he says.
Instead of making group announcements about salary cuts, call each staff member into the administrator's office and inform them individually about the plan, he says. Let them know that decisions are still being made, then gauge their reaction. If you make it clear you will keep their concerns private, staff members may be more likely to voice issues about the effect of salary cuts.
Learn more about Titan Health Corporation.
Read more critical ASC mistakes:
-Critical ASC Mistake: Physician Owners Using the ASC as a Bank
-Critical ASC Mistake: Making Impulse Supply Purchases