2. Highlight a few reasons that your ASC was able to achieve this success.
When I took over the accounts receivable, it was at 118 days. During the year, we worked it down to a more reasonable 23 days in A/R. Increasing our cash flow by collecting the out-of-pocket and co-pays just made sense. Previously, the center had not asked patients to pay upfront. This change also decreased our need to collect balances due after the fact, which can be very costly and sometimes unsuccessful.
We also worked very diligently to clean up our inventory. We now produce accurate and informative case costing analysis reports directly from our operating software system. We have used this information to carefully examine and make changes to our contracts, materials and staff utilization.
3. What did you do to avoid some of the economic challenges and downfalls of other organizations in a year that was a great struggle for many?
Case costing, inventory controls and down-staffing unnecessary staff were our most successful tools. We implemented a low-census policy to decrease staff during down times. Several personnel duties/job descriptions were merged as well, such as the scrub tech and materials manager.
We refined our case costing reporting which challenges the surgeons to more efficiently utilize supplies and drugs. Blue Chip Surgical assisted us in these cost-cutting measures, as well as negotiating stronger contracts with our in-network payors and helping us take advantage of out-of-network strategies.
4. What are your plans for 2010 to continue this success and how do you plan to achieve these goals?
Parkway Surgery Center has a big year planned for 2010. We are in the process of building two additional procedure rooms. We are negotiating a merger with a local orthopedic group to bring orthopedic cases to our surgery center. We will also add several new part-time pain intervention physicians for our pain clinic.
By changing implant vendors, the center realized a substantial cost savings on anterior cervical cases. Moving forward into 2010, we are also building a larger pool of PRN staff.
As an administrator, it is important to consistently stay on top of all of the numbers — from budgets to staffing census to inventory. The improved reporting methods we implemented in 2009 will enable us to make smarter, more efficient decisions in 2010. In conjunction with Blue Chip Surgical, we have also developed a benchmarking tool that gives us insight into additional indicators of a successful center.
Thank you to Blue Chip Surgical Center Partners for arranging this article.
