Orthopedic devices are tremendously costly, so orthopedic-driven ASCs must strategize and be proactive in their approach to containing those costs. Elaine Thomas, administrator at St. Francis Mooresville (Ind.) Surgery Center, offers three key best practices for ensuring this is achieved.
1. Make a final purchase with the orthopedic physicians. Signing a contract with a supplier for orthopedic devices without physician involvement can be detrimental to the financial health of your orthopedic-driven ASC. Obtaining feedback from physicians on potential supplies can help ASCs better gauge which orthopedic devices are worth investing in.
"Without getting physician feedback and buy-in, [orthopedic-driven ASCs] could end up paying out money for some extremely expensive orthopedic supplies while the ASC physicians are wanting to use another supply," Ms. Thomas says. "Facilities will want to make sure, before signing, that that particular orthopedic supply is the one the ASC's physicians want to use."
To get optimal feedback, Ms. Thomas suggests ASCs request a free trial of the orthopedic device if the ASC's orthopedic physicians have not had a chance to already use it.
2. Be creative in contract negotiations. Rather than defaulting to a traditional "buy-and-sell" contract, orthopedic-driven ASCs should work diligently to iron out a contract that can provide added benefits. Creative contracting can be achieved in a variety of ways, including extended warranties, free training or free supplement equipment. This is a strategic way to keep costs of orthopedic supplies down, especially in situations where suppliers are vying for your facility's business.
"It can be something as simple as receiving free accompanying equipment with a big purchase of the supplier's orthopedic devices, such as implantable screws," Ms. Thomas says. "Orthopedic suppliers are trying to help surgery centers keep the costs down [in order to lock in those business deals], so there is definitely the possibility of ASCs getting into some more creative financing."
3. Obtain approval from the board of managers. Ms. Thomas adds that, as a final measure, orthopedic-driven ASCs should seek the approval for any potential contracts with orthopedic suppliers from the governing body. This serves as a second line of defense, following physician buy-in, to ensuring such a long-term and costly contract is in the best interest of every individual working for the facility.
"[Orthopedic-driven ASCs] should make sure due diligence is done before signing a lengthy contract by going to the board," she says. "The board may decide they want to do another cost-comparison of deals with another company, or they may realize there are some loopholes in the potential contract that need to be addressed."
Learn more about St. Francis Mooresville Surgery Center.
1. Make a final purchase with the orthopedic physicians. Signing a contract with a supplier for orthopedic devices without physician involvement can be detrimental to the financial health of your orthopedic-driven ASC. Obtaining feedback from physicians on potential supplies can help ASCs better gauge which orthopedic devices are worth investing in.
"Without getting physician feedback and buy-in, [orthopedic-driven ASCs] could end up paying out money for some extremely expensive orthopedic supplies while the ASC physicians are wanting to use another supply," Ms. Thomas says. "Facilities will want to make sure, before signing, that that particular orthopedic supply is the one the ASC's physicians want to use."
To get optimal feedback, Ms. Thomas suggests ASCs request a free trial of the orthopedic device if the ASC's orthopedic physicians have not had a chance to already use it.
2. Be creative in contract negotiations. Rather than defaulting to a traditional "buy-and-sell" contract, orthopedic-driven ASCs should work diligently to iron out a contract that can provide added benefits. Creative contracting can be achieved in a variety of ways, including extended warranties, free training or free supplement equipment. This is a strategic way to keep costs of orthopedic supplies down, especially in situations where suppliers are vying for your facility's business.
"It can be something as simple as receiving free accompanying equipment with a big purchase of the supplier's orthopedic devices, such as implantable screws," Ms. Thomas says. "Orthopedic suppliers are trying to help surgery centers keep the costs down [in order to lock in those business deals], so there is definitely the possibility of ASCs getting into some more creative financing."
3. Obtain approval from the board of managers. Ms. Thomas adds that, as a final measure, orthopedic-driven ASCs should seek the approval for any potential contracts with orthopedic suppliers from the governing body. This serves as a second line of defense, following physician buy-in, to ensuring such a long-term and costly contract is in the best interest of every individual working for the facility.
"[Orthopedic-driven ASCs] should make sure due diligence is done before signing a lengthy contract by going to the board," she says. "The board may decide they want to do another cost-comparison of deals with another company, or they may realize there are some loopholes in the potential contract that need to be addressed."
Learn more about St. Francis Mooresville Surgery Center.