6 strategies to cut costs and improve case volume at ASCs

A panel of ASC industry experts discussed cost cutting and increasing case volume at the Becker's ASC 23rd Annual Meeting—The Business and Operation of ASCs on Oct. 27.

The panel included Stephen Blake, JD, CEO of Central Park Surgery Center in Arlington, Texas; Lisa Cooper, CEO of Santa Cruz (Calif.) Surgery Center; and Josh Carter, senior vice president of ASC sales at Medline Industries based in Mundelein, Ill. Becker's Healthcare Editor-in-Chief Molly Gamble moderated the panel.

Here are six tactics the panel discussed to cut costs and improve case volume.

1. Tackle labor costs effectively. Either the staff complain they need more help or they don't have enough hours. There are costs associated with staff turnover as well as retention. Ms. Cooper recommends conducting performance reviews of staff and rewarding or promoting based on the quality of their work.

"We put a bonus program in quarterly so it matches when the partners get their distributions," she said. "The staff members have to meet their goals by the end of the quarter and we judge whether they receive bonuses based on those goals they're accountable for."

The administrator can easily evaluate the performance of staff members who directly impact the ASC's financial success but it's more difficult to incentivize those who don't. Make sure to be transparent about the ASC's financial situation and how that ties into the bonuses.

"How the company is doing is quite critical to whether you can have your bonus," says Ms. Cooper. She recommended communicating with staff and motivating them to stay engaged with the center.

2. Engage a GPO for supply costs. Mr. Carter recommended engaging a group purchasing organization to audit contracts and ensure the ASC is accessing the correct purchasing tiers to drive down costs. "You don't have to change what you are using, just buy as economically as you can," he said.

Sometimes there are alternatives to high-cost items that can produce the same quality. There are also reprocessed items available.

"Different GPOs have different pricing," said Mr. Blake. "If you aren't a big utilizer, you get different tiers than those who are big utilizers. We were able to save about $3,500 by switching GPOs."

3. Standardize supplies for a discount. Mr. Blake's center examined the items used for tonsillectomies and the ENTs analyzed the cost of the orders. "We were able to affect significant changes with standardization," he said. "The more standardization you can get in your supplies, the better you can push the pricing."

4. Pay attention to potential waste. Waste can be prevalent in an ASC if administrators aren't vigilant. Staff members might be spending time on personal phone calls or the center could have contracts with friends instead of the most economic provider. Show staff members the phone bill so they know you're looking and take bids for everything from insurance coverage to housekeeping and laundry, said Ms. Cooper.

5. Create checks and balances in the billing process. After the materials manager submits a purchasing order, make sure that order matches with the packing slip and invoice. "Look at all three at once before you sign the check," said Ms. Cooper. "Watch reasonably well to make sure the checks match the bills so you catch any issues."

6. Increase your center's reputation and case load. Posting prices online can attract patients with high deductibles that are looking for high quality, low cost care. Mr. Blake's center posts prices online, which attracts both physicians and patients. "We are picking up cases through price transparency where people wouldn't have looked at us otherwise," he said. "We are bending the cost curve."

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