4 Ways to Avoid Common Surgery Center Financial Mistakes From Administrator Tracey Harbour

Tracey HarbourTracey Harbour, RN, BSN, administrator of Surgery Center of Pinehurst (N.C.) identifies four steps that ambulatory surgery center leadership can take to build a strategic defense against the frequent financial mistakes that happen in ASCs.

1. Always have a materials manager. Ambulatory surgery centers may not be as large as hospitals, but the amount of materials used still represents a level of complexity that needs to be carefully supervised. This represents a huge opportunity for cost savings – or a large drain on revenue. Someone needs to be placed in a role that oversees the materials the physicians and staff of an ambulatory surgery center are using.

A materials manager will not only monitor what materials are being purchased and used, but will also fight to get an ASC the best pricing. "A materials manager who has extensive experience in negotiating with vendors and contract pricing is critical," says Ms. Harbour.

ASC leadership must place the right person in that position. "Ensure that you hire a materials manager who is qualified to do the job. Check references, perform background checks and have a face-to-face interview," says Ms. Harbour. A qualified materials manager is necessary to prevent possible financial mistakes.

2. Join a group purchasing organization. Joining a group purchasing organization is an important step that ASC leaders can take to capture cost savings and avoid wasting money. GPOs allow ASCs to get the best pricing for supplies and equipment, said Ms. Harbour. GPOs are also available to ASCs for free.

The key to maximizing the potential savings that a GPO has to offer lies with the materials manager. "You need to have a materials manager who knows when to compare the cost of a product off contract to ensure the facility is getting the best pricing," says Ms. Harbour.

3. Establish a supply value analysis committee. Materials managers play an integral role in steering ASCs clear of financial errors, but they cannot bear that burden alone. Ambulatory surgery center leaders should form a supply value analysis committee. This committee should be responsible for regularly analyzing cost savings and arranging monthly meetings that bring together everyone at the center. "Consistently holding monthly supply value analysis committee meetings holds everyone in the facility accountable for thinking of savings, as well as keeping the surgeons and staff aware of the found savings," says Ms. Harbour.

Outside of the monthly meetings, the committee should still be active in guiding an ambulatory surgery center towards the best financial practices. "Another important aspect of having the committee is streamlining the [purchasing] process through product evaluation; this prevents physicians from having products brought in by vendors without approval," says Ms. Harbour.

Everyone working at an ASC has a busy schedule and there may be reluctance to participate in monthly meetings. "Found savings could translate into potential distributions for staff and surgeons, and this is usually a pretty good motivator when people seem less than excited about participating in the meetings," says Ms. Harbour.

4. Consider a management partner. Part of the appeal that many find in working at an ambulatory surgery center is the freedom from the bureaucracy of a hospital, but on the flipside this leaves ASC leadership with the very large responsibility of navigating the rapidly changing healthcare system, which is a veritable minefield of potential financial mistakes or opportunities.  

Ms. Harbour suggests that ASC leadership look outside the center for a guiding hand. "A management company can give you a partner to help keep up with the ever-changing healthcare arena," she says. A management company provides a significant cushion between ASCs and the rough reality of potential financial slipups.

More Articles on ASC Issues:
5 Tips to Approach Cost Reduction on Physician Preference Items
Surgery Center Trends Today: 8 Thoughts on What Works – And What Doesn't
5 Steps for Smooth Surgeon Relations at a Cost Conscious Surgery Center

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Webinars

Featured Whitepapers

Featured Podcast