Two ASC administrators said this year’s biggest cost pressures are facility compliance, anesthesia coverage, and supplies and technology.
Editor’s note: Responses have been lightly edited for clarity and length.
Question: What’s the single biggest driver of rising costs at your center this year, and what have you done to offset it?
Kim Fullone, RN. Administrator of Ambulatory Surgery Center of Niagara (Niagara Falls, N.Y.):The biggest cost pressure for our center this year has been keeping up with facility requirements and best practices. We installed an expensive reverse-osmosis water system, which requires ongoing water testing. Temperature and humidity requirements are another challenge. Even a small deviation can mean calling our HVAC company, so we’ve invested in better monitoring software and more service support. I understand why these standards matter, and we want to meet them. But the cost of equipment, testing, monitoring, and service is especially hard for a small, privately owned center, particularly since reimbursement just keeps dropping
Anesthesia coverage adds to the pressure. We have a wonderful CRNA group, but we’ve had to reduce some services because not all of our physicians are comfortable supervising general anesthesia or pediatric cases. The shortage of anesthesia providers in western New York also makes short or partially filled OR days difficult to sustain, so we’ve worked with surgeons to consolidate cases into fuller blocks. If we were to lose our current group, the other coverage options would likely require substantial stipends, adding another significant expense.
Ed Tolentino. Administrator of Outpatient Surgery Center of Central Florida (Wildwood): The biggest cost pressure for us this year has been medical supplies and technology, particularly as we expand into more complex cardiovascular and EP procedures. We’ve tried to offset that by being much more intentional about understanding our cost at the individual case level. We’re looking closely at supply utilization, vendor pricing, staffing, procedure time and reimbursement so we can see what each case is actually contributing. That visibility has helped us negotiate more effectively with vendors, reduce unnecessary spending and make better decisions about which procedures make sense in the ASC setting. For us, it hasn’t necessarily been about cutting costs across the board; it’s been about having better data and being more disciplined about where we spend.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
