Issue link: https://beckershealthcare.uberflip.com/i/170052
10 Sign up for the FREE Becker's ASC Review E-Weekly at www.beckersasc.com or call (800) 417-2035 zation with stocked supplies is crucial because it leads to cost savings down the road. ASC Roundtable: What to Do in Markets With Heavy Hospital Employment (continued from page 1) company. GPOs can help surgery centers lower materials costs by negotiating bulk contracts and restructuring old contracts so they are more beneficial to the bottom line. "There is always room for improvement when we are watching how much we are paying for products at our centers," says Mr. Dailey. "A lot of centers are so busy that they don't look at how their contracts are organized and they could get better pricing if they reviewed those details. It takes some extra leg work, but it's worth it to jump from one price bracket into the next." If you aren't part of a GPO, consider joining one. "A GPO can typically save you anywhere from 7 percent to 15 percent on materials costs," says Mr. Scott. "A good inventory system is a must so you can track costs of supplies and target the outliers to work with vendors for reduction in cost." 2. Focus on organization in inventory management. Materials managers at the surgery center should focus on organization when purchasing and maintaining inventory. Organi- those manufacturers and distributors. Also work with physicians to streamline implant choices. "A lot of centers do inventory and purchasing by hand and eye, and things are lost," says Mr. Dailey. "It's hard to keep track of pricing. We encourage electronic inventory management systems. By partnering and recording inventory management there, it cuts down on their work load and decreases error, which yields cost savings. We see a significant reduction in our costs; there is a direct correlation." "Some vendors will provide you the device and assist you in informing and training your physician as to the benefits of the lower cost device," says Mr. Scott. "You can also put the surgeon in touch with other physicians and specialists in the area that are using a particular implant so they can talk amongst themselves about the benefits of a particular device. Keeping the physicians informed and getting their buy-in is what counts." 3. Continuously renegotiate supply contracts. Dedicate one person at the surgery center or management company to track the most commonly used items at the center and review those contracts annually. Renegotiating high volume contracts stands to save surgery centers the most money in the future. 4. Reduce shipping costs with new contracts. Shipping costs are significant for surgery centers ordering implants or other supplies on a regular basis, especially when those supplies are shipped overnight. There are several independent companies that can perform audits of the shipping logistics and pricing to help you negotiate a better contracted rate with shipping companies. "We use a lot of sutures in our surgery centers, and they cost a lot of money," says Mr. Dailey. "We renegotiate those contracts all the time for better pricing. A lot of centers also have a high volume of eye implants. I make a special contract for those and look very closely at negotiating the best rate for our volume." These renegotiations take a lot of focus, so zero in on a few items and develop a relationship with Take your ASC to the top... "With one ASC in Florida, which had a high volume of orthopedics and pain procedures, we were able to save $60,000 in shipping costs annually after renegotiating their contract," says Mr. Dailey. "We forecasted this savings and showed it to the surgeons, which was huge. People take shipping costs for granted because it's important, but it costs so much." With the right partner Meridian Surgical Partners specializes in acquisition, development, and management of multi-specialty and spine-driven ASCs. We have proven success partnering with physicians to help them reach their ASC goals. Physician Benefits Include • Excellent return on investment • Access to capital • Decreased risk • Reduced management burden • Strong focus on patient care and outcomes • Improved quality of life Contact us today to discuss your ASC goals. Acquisition • Development • Management www.meridiansurgicalpartners.com 615-301-8142 info@meridiansurg.com