Here are five steps to cut supply costs in gastroenterology and endoscopy centers from Daren Smith, director of clinical services for Surgical Management Professionals.
1. Gather data on materials used. For most efficient inventory management, gather data on supply usage to understand how to fulfill your case volume in the future. "Knowledge is power; you have to know what your spend is and your projected case volume for the future to make purchasing decisions," says Mr. Smith. "You have to know what you've used in the past and what you'll need in the future."
Data is also useful during contact negotiations. "We encourage centers to do case costing and price comparing of materials used, and make sure they are using products that are on contract with their group purchasing organization," says Mr. Smith.
2. Don't overstock. Many GI-driven centers have a tendency to overstock materials to avoid shortages, but too much inventory can make an impact on the ASC's bottom line. "We have such tight margins when it comes to GI procedures that you have very little room for error," says Mr. Smith. "Stocking a few extra things on the shelf can make a big difference. Find the balance to make sure you aren't damaging the bottom line by over-ordering."
3. Keep supplies all in one place. Make sure nurses and ASC staff keep all the supplies in one place; there shouldn't be extra supplies in the procedure room or stashed in different nooks around the center. "We encourage our centers that have GI to consolidate the number of places where there are supplies so it's easier to manage," says Mr. Smith. "We don't want some supplies in the OR and others in a cupboard somewhere; if you have it all in one place it's easier to keep track of."
4. Contract for quick and inexpensive repairs. Sometimes, scope repair costs are higher than supply costs. Pay equal attention to the repair contracts to avoid overpaying or long waits to receive fixed instruments. "There are third party vendors that tend to be cheaper than manufacturers and some have devised creative programs you can use to reduce your cost," says Mr. Smith. "They might have a flat fee or capped programs; it's a matter of investigating what works best for your center."
Centers with newer scopes are less likely to need full coverage for repairs, but centers with more aged equipment will more quickly meet the threshold that would make a capped cost program beneficial.
5. Educate surgeons on proper handling to avoid repairs. The best way to save on instrument repairs is not to need them at all. Educate physicians about proper handling to ensure the instruments will stay intact as long as possible.
"Just being able to have someone come in and train your physicians on how they need to treat the scopes in order to keep them in top condition will make a difference," says Mr. Smith. "Manufacturers or third party vendors will do that in an in-service for physicians and staff."
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1. Gather data on materials used. For most efficient inventory management, gather data on supply usage to understand how to fulfill your case volume in the future. "Knowledge is power; you have to know what your spend is and your projected case volume for the future to make purchasing decisions," says Mr. Smith. "You have to know what you've used in the past and what you'll need in the future."
Data is also useful during contact negotiations. "We encourage centers to do case costing and price comparing of materials used, and make sure they are using products that are on contract with their group purchasing organization," says Mr. Smith.
2. Don't overstock. Many GI-driven centers have a tendency to overstock materials to avoid shortages, but too much inventory can make an impact on the ASC's bottom line. "We have such tight margins when it comes to GI procedures that you have very little room for error," says Mr. Smith. "Stocking a few extra things on the shelf can make a big difference. Find the balance to make sure you aren't damaging the bottom line by over-ordering."
3. Keep supplies all in one place. Make sure nurses and ASC staff keep all the supplies in one place; there shouldn't be extra supplies in the procedure room or stashed in different nooks around the center. "We encourage our centers that have GI to consolidate the number of places where there are supplies so it's easier to manage," says Mr. Smith. "We don't want some supplies in the OR and others in a cupboard somewhere; if you have it all in one place it's easier to keep track of."
4. Contract for quick and inexpensive repairs. Sometimes, scope repair costs are higher than supply costs. Pay equal attention to the repair contracts to avoid overpaying or long waits to receive fixed instruments. "There are third party vendors that tend to be cheaper than manufacturers and some have devised creative programs you can use to reduce your cost," says Mr. Smith. "They might have a flat fee or capped programs; it's a matter of investigating what works best for your center."
Centers with newer scopes are less likely to need full coverage for repairs, but centers with more aged equipment will more quickly meet the threshold that would make a capped cost program beneficial.
5. Educate surgeons on proper handling to avoid repairs. The best way to save on instrument repairs is not to need them at all. Educate physicians about proper handling to ensure the instruments will stay intact as long as possible.
"Just being able to have someone come in and train your physicians on how they need to treat the scopes in order to keep them in top condition will make a difference," says Mr. Smith. "Manufacturers or third party vendors will do that in an in-service for physicians and staff."
More Articles on Surgery Centers:
10 ASC Administrators Discuss How Their Centers Stand Out
When ACOs Come to Town: Q&A on Options for ASCs With Jon Friesen of Nueterra
5 Tips to Revive an ASC's Patient Base With Direct Marketing