Becker's ASC Review

46 Sign up for the FREE Becker's ASC Review E-Weekly at www.beckersasc.com or call (800) 417-2035 5 Initiatives for Higher ASC Operating Margins By Laura Miller C entral Maine Orthopaedics in Auburn, Maine, is a large orthopedics practice with an adjoined ambulatory surgery center. Last year, the group reported its highest operating margins in the center's more than 15year history, largely due to key initiatives implemented over the past few years. "We're very fortunate here because we have a strong surgery center in terms of quality and financials, but in the past year we've experienced the strongest operating margins we've ever seen," says Michael Cox, CEO of Central Maine Orthopaedics. "We've been remodeling our systems approach and it paid huge dividends for us last year. The only general rule we live by is that we wouldn't cut anything if it impacted quality and/or superior patient outcomes. We have really interfaced our business on both the clinic and ASC side, and that synergy has paid off for us." Here are the five key initiatives that lead Central Maine Orthopaedics to report its highest operating margins ever last year. 1. Staff engagement and accountability. CMO requires a high level of commitment from their all members of their staff. The leaders engage clinical and administrative staff members alike to improve operations at the practice and surgery center. 2. Cross train staff members. Central Maine Orthopaedics has cross trained staff members from the clinic and surgery center to address issues on both sides. This increased flexibility allows the practice to respond quickly to staffing changes in a cost-effective way. "Our center is unusual in that our staff members have a voice in daily operations and performance improvement measures," says Anne Marie Kayashima, director of clinical and surgical services at Central Maine Orthopaedics. "Our staff members play a role in developing our strategic plan through ongoing initiatives and committees. If there is a problem we identify, such as volume changes, we can work with our staff members to identify the challenge, develop a solution and move the system forward." "Over the course of the last few years we have been able to address costs and other strategic issues by cross training staff," says Jeffrey Wigton, director of operations at Central Maine Orthopaedics. "Through cross training we have been able to add clinical programs (and providers) while minimizing the increase in support staff costs." Staff members are also encouraged to brainstorm ideas for improved efficiency at the practice and surgery center. Staff ideas have been implemented in the past for considerable costsavings for CMO. Cross-trained staff can also help CMO maintain its position as the low cost, high quality provider in the marketplace. "That will keep us sustainable in the future," says Ms. Kayashima. "We've been a low cost leader for some time, but trying to maintain that position is a challenge." 3. Standardize implants. Over the past few years, CMO has implemented an aggressive value How Healthy Is Your Bottom Line? Physicians' Capital Investments (PCI) is owned in part by physicians who understand your needs and the challenges you face on a daily basis. Let PCI help you plan for your future by financing and developing your new medical facility, or enhance your liquidity position by monetizing your existing medical facility. Our proven model turns exceptional physicians into extraordinary business people. l Real E So lut ions • te Me d i ca s ta Custom financing options Unique whole and fractional ownership models Distinctive medical development solutions Robust investment management services National medical development footprint • • • • • • 866.936.3089 Consulting@physcap.com www.physcap.com 8117 Preston Road, Suite 400 Dallas, TX 75225 © Copyright 2013 Physicians' Capital Investments. All rights reserved.

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