Becker's ASC Review

Supply & Materials Management 34 6 Effective Steps to Lower ASC Materials Costs Amy Gagliardi By Laura Miller A my Gagliardi, Vice President, Supply Chain for Regent Surgical Health, discusses six steps to lower materials costs at ambulatory surgery centers. 1. Optimize reprocessing potential. There are some products that can be reprocessed, which has the potential to save surgery centers 50 percent on the purchase price of each item. Companies that provide reprocessing services, such as Medisiss and Stryker Ascent, must withstand a rigorous FDA clearance process to ensure their products are safe to reuse. "When you look at the facts of what the FDA requires, the integrity of a reprocessed item faces tougher scrutiny than the original item," says Ms. Gagliardi. "The guidelines for reprocessing an item are as strict — if not more strict — than the manufacturer's initial production specifications. You are getting an item back that is, at a minimum, twice as compliant as the original product." To bring reprocessed supplies into the surgery center, the ASC administrator must: •  nvestigate each reprocessing company I within the market and decide which is most closely aligned with the ASC's needs; •  ducate clinical staff about reprocessing E and its benefits; •  nvite reprocessing representatives to presI ent at your board meeting to engage physician partners in the process. "Tout the integrity and potential cost savings to physicians," says Ms. Gagliardi. "The beauty of reprocessing is that there is minimal work effort on the surgery centers part because we can toss everything into the bin and the reprocessors will sort it out and make the decision about whether it can be reprocessed or disposed of. Even when a product is disposed of, the organization will take care of it in an environmentally sound way. We are being socially conscious, and that is a big selling point." 2. Continuously evaluate and update GPO contracts. Continually evaluate group purchasing organization contracts to optimize savings opportunities. Most GPO organizations have multiple tier levels, meaning the more you purchase, the more you save. As your surgery center grows and changes, make sure you are reaching the maximum tier level within your contract. "If your ENT use was low last year but is reaching $50,000 this year, see if you can qualify for a new tier," says Ms. Gagliardi. "At Regent we have worked with our GPO to recognize us at the right tier so we can aggregate 99 percent of all surgery centers to optimize the highest possible tier level and best possible pricing." •  old a reprocessing in-service day where H your company representative talks to the staff; When you are contracted with a GPO they must honor the savings at a set level once you reach that threshold. However, the ASC should track their bills and make sure the company is charging appropriately based on those contracted rates. •  onduct an assessment of workflow to C find and eliminate potential waste; "You want materials management and the business office to make sure every item you purchase •  nvolve physician partners to gain buy-in; I Facility Development & Management, LLC YOU FOCUS ON YOUR PATIENTS WE FOCUS ON YOUR BUSINESS Development • Management • Consulting • Regulatory Compliance Experts Your Center In Our Hands Let our expertise guide you to success Contact us www.facdevmgt.com 845.770.1883 is being billed at the correct price," says Ms. Gagliardi. "At Regent, we use a software program that tells us if something doesn't match. For example, if we place an order for $10 and the invoice comes back for $20, our software won't allow that invoice to be paid until it is rectified. Make sure your business office and accounts payable department are working closely and intertwined with materials management." 3. Work on a rebate for non-GPO items. There are some companies and manufacturers that don't participate in GPO portfolios, which means you aren't realizing savings for their products. These are usually high-dollar items, such as orthopedics and spine devices, so continually reevaluate your spending to see if you can negotiate a better price with vendor representatives. "Every six months you can take a look at your spend as a whole center and go back to the company to see what they can do for you," says Ms. Gagliardi. "We have so many moving parts that we are doing this constantly. I would recommend an ASC re-evaluate these contracts annually at a minimum." If you aren't able to negotiate  prices you should try to negotiate a rebate program. "For X amount of dollars you spend, you will get a percentage back to lower the overall cost with rebate programs," says Ms. Gaglierdi. "We'd rather have the lower cost upfront, but if that isn't doable it's worth your time and effort to get the rebate."

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