To reduce expenses, ASC administrators should understand that 80 percent of costs are driven by the top 20 percent of spend, according to Encompass Healthcare Data Solutions.
Four steps to applying this principle to vendors and items purchased:
1. Run an accounts/payable report and sort vendors by annual spending.
2. For each vendor in the top 20 percent, run usage reports.
3. Identify line items in the top 20 percent for annual spending.
4. Use this information to ensure you are leveraging every possible contract through your group purchasing organization.