Linda Phillips of Southgate Surgery Center Shares 5 Ways to Improve Profitability With a Renovation

Renovating a surgery center is a great way to increase case volume and revenue by adding additional operating rooms and incorporating other specialties, but there are other more subtle ways a renovation can increase profitability.

Linda Phillips, RN, administrator of Southgate Surgery Center in Southgate, Mich., oversaw the center's expansion from an ophthalmic medical clinic with a single specialty, one-OR ASC to a multi-specialty, four-OR ASC specializing in ophthalmology, GI and pain procedures. She obtained the three additional CONs required for expansion in Michigan and did all of the interior decorating herself.

She recommends five points to keep in mind when doing a renovation to both save money and improve profitability.

1. Keep up constant communication with all parties involved. During the renovation process, Ms. Phillips was in contact with the architects and engineers involved with the project. She traveled to Lansing — about a 100-mile drive — to meet with the architects about the construction plans.

"Obviously, the architects have to approve the plans, but they can do that without you there," she says. "I didn't want to run into an issue later. I tried to avoid all that."

She also met with the local and state fire marshals to ensure the center would pass the inspections later.

"I often spoke to them during the construction time," she says. "I didn't want to have to follow-up to repair something. They were very good. They even came out for an evaluation, not an official evaluation, but just to give us a head's up if we were on the right track."

Ensuring everything is done right the first time will save money on fixing errors down the road as well as allow the center to re-open on time.

2. Make sure the renovation meets Medicare guidelines. Ms. Phillips says meeting Medicare guidelines the first time around can also save a center money by avoiding fixes later on. Medicare requires that a surgery center has an isolation room to avoid infection as well as a consultation room so the physician or other staff member can meet with a family member in private. If the center is connected to a medical practice, the medical practice and the ASC need separate waiting rooms, Ms. Phillips says.

3. Ensure the renovation increases the flow of the center. The best way to increase profitability in a center is to maximize the flow.

"Whatever you can do to speed up your flow keeps everyone happy," she says. "It alleviates down time and excessive labor time. The staff likes it because the doctors aren't upset because they're waiting, and the patients aren't upset. It just makes their job easier."

To increase flow at the Southgate Surgery Center, the lobby is located close to the pre-operation area. This is important because a large proportion of the procedures the centers does are cataract surgeries, and patients often use wheelchair or walkers, Ms. Phillips says. The two additional operating rooms are located right next to each other so the same physician can bounce from room to room. This speeds up the day and cuts down on the time the surgeon is waiting around, she says.

Another thing added during the renovation was a discharge door at the back of the center. This way, patients don't have to traipse back through the lobby drowsy after their procedure and with messy hair, Ms. Phillips says. Patients have mentioned this aspect of the center on the patient satisfaction forms as a plus, she says. The discharge door is also beneficial for elderly patients because family members can pull the car right up to the back door.

4. Create a calming environment. When deciding on the decor for the center, Ms. Phillips was aiming to create a calming environment.

"When you come in for surgery you're anxious," she says. "It's that fear of the unknown, even if you're coming in for cataract surgery and you've come in twice. We also do a lot of GI procedures. People are hungry, nervous and anxious. We wanted a calming environment."

One of the ways she did this was through color. She chose hunter greens and beige. The wallpaper in the pre- and post-operation areas has a small, subtle pattern to it so the walls don't feel sterile and unwelcoming but aren't overwhelming.

5. Pay attention to the small details in the waiting area. In line with the calming environment, Ms. Phillips says it's important to pay attention to the small details in the waiting area so it feels comfortable rather than like a sterile environment.

One such detail is that the patients can see the receptionists behind the desk. There are not glass windows or doors that can be shut to make the waiting room feel cold and isolated, she says. The chairs in the waiting area are not hard plastic or metal but wood with fabric. Ms. Phillips says that with a little shopping around, she was able to find chairs that made economic sense as well as provided comfort. The bathrooms in the waiting area are also decorated with small tables with flowers and pictures.

"Not too much to overstimulate, but just enough to make it not feel like a facility bathroom" she says. "Family members also have to sit out there," she says. "You never have a second chance to make a first impression."

Related Articles on Surgery Center Renovations:
5 'Cs' for Addressing Infection Control in Design & Construction
8 Points on Construction When Renovating a Surgery Center
Hospitals Make Alterations to Accommodate Obese Patients

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