Angela Wustner, business analyst at Physicians Endoscopy, which operates 20 GI centers across the country, shares three ways GI/endoscopy-driven ASCs can reduce costs.
1. Become a member of a GPO program. Once you are a member, periodically review your purchase volume and increase tier levels as necessary. A tier level represents different levels of commitment to a specific manufacturer; the higher the tier, the higher the percentage of savings.
The best way to increase your tier levels is to standardize purchasing so that you are purchasing from one manufacturer for each type of product. Another way to save is to keep up to date on new contracts that are added to your GPO and group buys that are offered for a limited time on capital equipment.
Physicians Endoscopy recently signed a letter of commitment that was new to our GPO and saved $26,000 a year across all of our centers. We also made one purchase during the group buy period and saved $6,000 at just one center. One of the key factors to realizing savings with a GPO is to make sure the employees responsible for placing orders know to notify the vendors that you are a member. Every order placed without utilizing the GPO program may result in missed savings.
2. Renegotiate with vendors and distributors annually. As your volume increases over time, ask the vendor to reevaluate the pricing structure of your account. We recently contacted our credit card processor and renegotiated the base rate which resulted in a savings of $19,000 a year over all of our centers. Even a small percentage change can make a huge difference on a large account.
3. Don't be afraid to ask the vendor for what you want. Even if you miss the group buy date or don't want the product right now, ask if they will still offer you the savings. The worst they can say is no, but you may be pleasantly surprised and get just what you asked for.
Learn more about Physicians Endoscopy.
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