Becker's ASC Review

ASC Turnarounds: Ideas to Improve Performance 14 6 Ways to Slash Costs of Spine Surgery at ASCs By Laura Miller S ners and investors in the surgery center on costcutting efforts. This means going further than just examining the numbers and implementing new rules; the surgeons must be part of that process. pine surgery is increasingly moving into outpatient ambulatory surgery centers, which operate on a highly efficient and cost-effective basis. However, with regulatory changes and downward pressure on reimbursements, ASCs may need to dig deeper in costcutting measures. "Administrators are trying to make it enticing for surgeons by accommodating their schedules and giving them the materials they want so they'll operate at the center. However, that won't really help with costs and overhead for the facility. It's not cost-effective for the ASC or the healthcare system," says Dr. Won. "Every year more minimally invasive surgeries are being performed in the ASC instead of the hospital, and that will help reduce the cost," says Douglas Won, MD, director and founder of Minimally Invasive SpineCARE, based in Irving, Texas. "It's more expensive to operate in a hospital than the ASC. The nationwide healthcare costs related to spine surgery will come down, and I think we will see this become more of a trend in the future." Call a meeting with all the surgeons — investors and non-investors — to help them really understand what makes the center profitable. From there, you can focus on areas with the most opportunity for cost reduction. Here are six ways for ASCs to slash costs on spinal procedures. "They have to understand and they have to be involved," says Dr. Won. "If you just demand or dictate to the surgeons, they won't come back to the center. Engage the physicians and help them 1. Engage surgeon partners. Ambulatory surgery center administrators must engage part- ▪ ▪ ▪ gregz@kbic.com andreav@kbic.com • • • Dr. Douglas Won understand where you are coming from. If they are partners, they will want the ASC to be successful and profitable so they can see a return on investment as well." 2. Streamline supplies. One of the quickest ways to decrease supply costs at the surgery center is by streamlining the implants. Work with the surgeons to consolidate supplies and choose one company to purchase from. "If the surgeons are in line with the ASC and can work together to select specific implant companies or suppliers and decide what disposable supplies to utilize, I think the surgery center can negotiate better with vendors," says Dr. Won. "They have more purchasing power with implant companies, and where available they can purchase implants at a wholesale price." ASC administrators can also renegotiate shipping and handling prices for supplies and drugs. Finally, bring anesthesiologists into the discussion as well to lower costs on the drugs they use. "Utilize generic products to help reduce the cost for the ASC," says Dr. Won. 3. Use refurbished supplies. In addition to cutting down on disposables, surgery centers should consider opportunities to re-sterilize their supplies. Refurbished equipment and instrumentation is available from several companies — including some of the biggest orthopedics and spine suppliers — and can make an impact on the bottom line. "Consider using refurbished equipment because it can create a significant cost savings," says Dr. Won. "If you engage the surgeons and help them understand how these things can make the center more profitable and lower healthcare costs, that makes a big difference." However make sure all providers are comfortable with the quality of refurbished and re-sterilized equipment before making the full switch. 4. Talk with surgeons about business. Most spine surgeons have never taken a business

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