Becker's ASC Review

15 ASC MANAGEMENT Medline secures $75M distribution agreement including 22 ambulatory centers — 4 details By Angie Stewart M edline signed a medical-surgical distribu- tion agreement with Sharp HealthCare that includes nearly two dozen ambulatory medical centers in San Diego County. Here are four details: 1. The eight-year agreement spans four acute care hos- pitals, three specialty hospitals, 22 ambulatory medical centers and five urgent care centers. 2. The agreement is worth more than $75 million annually. 3. It went into effect in June. 4. Medline Market Sales Director Mark Lorman credited the agreement in part to Insight, a spend management solution Medline implemented as part of its MetrIQ Spend Management Program. n Target these 10 HR inefficiencies to reap 6-figure savings By Angie Stewart A lthough human resources is one of the largest line items for ASCs, it's of- ten a missed opportunity for savings, according to MedHQ's 10-Point HR Audit. Here are 10 HR inefficiencies ASCs can target to result in significant savings: 1. 401K. ree components of 401K plans drive up costs: third-party management, in- vestment fees and the registered investment advisor. Wrap RIA and TPA/compliance services into one program to save between $3,500 and $12,000 annually. 2. Health plan. Limit annual increases to 2 to 4 percent a year rather than 10 to 20 percent to save up to $36,000 annually. Track the monthly insurance bill to ensure former employees are removed from coverage when they should be, which can save $8,000 to $20,000 each year. 3. Paid time off. ASCs should employ pro- cess automation such as outsourcing PTO administration and employee self-service. When a center reduces the hours managers spend on administering programs such as PTO, onboarding and ooarding, it can generate savings of $5,000 to $10,000 annu- ally, depending on employees' salaries. 4. Worker's compensation insurance. Worker's compensation claims might materi- ally impact an ASC's insurance premium about 20 percent of the time. Promote work- place safety to reduce the risk of accidents, which can translate to $3,000 to $25,000 in insurance premiums for a $1 million payroll. 5. Vendor consolidation. Many ASCs use 20- plus vendors for support services. Bundle ser- vices for discounted fees and fewer mistakes to save management hundreds of hours yearly. 6. Open enrollment. It can cost 40 to 80 hours to prepare for and administer an open enrollment period. Combine open enroll- ment preparation with outsourced evalua- tion and benefits renewal decision-making to save up to $10,000 annually. 7. Employee relations risk management. Ignoring or improperly managing underper- forming employees comes with many risks and significantly impacts operating income. Address risk areas such as discrimination, employee attendance, inappropriate work be- havior and sexual harassment to avoid claims amounting to as much as $100,000. 8. Compensation. Help employees un- derstand the rationale behind compensa- tion programs to reduce the likelihood of turnover and consequential replacement costs, resulting in savings of up to $12,000 per person. 9. Unemployment claims management. e tax rate percentage for unemployment claims can be negotiated to a lower rate. Centers can save $3,500 to $10,000 each year by bet- ter managing unemployment tax. 10. Good culture. Recruit a group of 20 to 40 individuals with similar values, and establish good HR practices, compensa- tion plans and benefits to reduce employee turnover. Retaining one full-time employee saves $10,000 to $12,000 worth of replace- ment costs. n Surgery Center of Quincy locked down after bomb threat — 4 insights By Eric Oliver Q uincy, Ill.-based Blessing Hospital locked down its entire complex, including the Surgery Center of Quincy, after an unidentified party made a bomb threat, the Herald-Whig reports. Here's what you should know: 1. Quincy police were dispatched to the hospital the morn- ing of May 21 after being notified of the bomb threat. They worked on clearing the entire complex but later deter- mined the threat was false. 2. The lockdown applied to the Child Care Center, Bless- ing Health Center, Blessing Business Center, Blessing Education Center, Wellness Center, Hospice, Sleep Center, Surgery Center of Quincy and 1107 College. 3. Patients were allowed to leave the hospital, but not al- lowed to enter during the lockdown. Blessing still accepted emergency patients, but implemented a search protocol. 4. The hospital remained on lockdown until 12:48 p.m. May 21. n

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