Operational and technology costs comprise a significant chunk of ASCs’ budgets, which means securing favorable contracts with vendors is key to financial sustainability.
Tammy Smittle, RN, BSN, chief operating officer and chief nursing officer of Austin, Texas-based Northwest Hills Surgical Hospital, recently joined Becker’s to discuss her approach to vendor contracting and operational cost management.
Editor’s note: This response has been lightly edited for clarity and length.
Question: With the cost of operations continuing to rise, what’s your strategy for approaching vendor and supply contracts in 2026?
Tammy Smittle: In today’s medical business, controlling every possible piece is crucial for profitability. You must align with an aggressive group purchasing organization. My facility currently works with The Resource Group. I find them easy to work with and am impressed with their willingness to partner with us instead of dictating to us.
Q: What metrics matter for you in evaluating the value of new technologies, supplies or other facility investments? TS: Regarding new technologies, you have to stay vigilant. As the leader of an ortho/spine-heavy facility, new implants are released daily. I must maintain good relationships with my surgeons and their vendors to stay informed. If your surgeons trust you, they will come to you with new ideas and plans before implementing them. We perform case costing on every implant-heavy surgery to ensure it is a procedure we can perform. I also spend time on payer websites looking up policies for implant coverage. Facilities can still be profitable with new healthcare widgets, but you have to put some sweat equity into it first!
