ASCs across the country are facing skyrocketing practice costs paired with declines in reimbursements from payers.
Benita Tapia, RN, administrator and director of nursing at Beverly Hills, Calif.-based 90210 Surgery Center, joined Becker's to discuss seven strategies in maintaining financial stability amid this trend.
Question: How can ASC leaders balance rising operational costs with stagnant or decreasing reimbursement rates to ensure financial stability?
Benita Tapia:
1. Group purchasing and negotiation
- Group buying organizations: Join GPOs to leverage bulk purchasing power. This can significantly reduce the costs of implants and supplies.
- Supplier negotiations: Regularly renegotiate contracts with suppliers. Emphasize long-term partnerships and volume commitments to secure better rates.
- Standardization: Work with surgeons to standardize on a smaller variety of implants and supplies. Standardization can increase order volumes for specific items, enhancing negotiation power with suppliers.
2. Efficiency in scheduling and utilization
- Maximize operating room utilization: Implement scheduling software that optimizes the use of operating rooms and minimizes downtime. Consider extended hours or weekend surgeries if feasible.
- Lean practices: Apply lean methodologies to streamline workflows and eliminate waste. This can help in reducing the time and resources spent on each procedure.
- Capacity management: Monitor and adjust staff schedules based on patient volume to ensure resources are used efficiently without overstaffing.
3. Staffing optimization
- Skill mix: Use a mix of registered nurses, licensed vocational nurses and certified nursing assistants to ensure cost-effective staffing while maintaining high-quality care.
- Scope of practice: Ensure that each type of staff member works within their scope of practice. This can help in delegating tasks appropriately and avoiding the higher costs associated with overqualified personnel performing routine tasks.
- Cross-training: Cross-train staff to handle multiple roles and responsibilities. This flexibility can reduce the need for additional hires and help cover absences without extra cost.
4. Technology and process improvements
- Electronic health records: Use EHRs to streamline administrative tasks, improve accuracy, and reduce paperwork.
- Inventory management systems: Implement robust inventory management systems to track and manage supplies efficiently, reducing wastage and overstocking.
5. Financial management and revenue cycle optimization
- Cost analysis: Conduct regular cost analyses to identify areas where expenses can be reduced without compromising care quality.
- Revenue cycle management: Optimize revenue cycle processes to ensure timely and accurate billing, reduce denials, and improve collections.
6. Continuous improvement and staff engagement
- Feedback loops: Establish feedback mechanisms for staff to suggest cost-saving ideas and process improvements.
- Training and education: Invest in ongoing training and education for staff to keep them updated on best practices and efficient use of resources.
- Incentive programs: Implement incentive programs to encourage staff to contribute to cost-saving initiatives.
7. Collaboration and communication
- Regular meetings: Hold regular meetings with clinical and administrative staff to discuss cost-saving strategies and monitor progress.
- Transparency: Maintain transparency with staff about financial goals and challenges to foster a collaborative environment.