Becker's ASC Review

58 Becker's ASC 22nd Annual Meeting - The Business and Operations of ASCs – Call (800) 417-2035 P hysician preference items, particularly orthopedic preference items, can con- tribute significantly to supply costs at an ambulatory surgery center. It is in the center's best interest to keep these costs as low as possible to achieve financial success. Getting enviable pricing There are a number of options for obtaining the best price for orthopedic devices and implants, says Jebby Mathew, director of operations at The Orthopaedic and Spine Center of Southern Colorado in Colorado Springs, a PINNACLE III managed facility. One of the best options is join- ing a group purchasing organization. GPOs have extensive experience negotiating supply pricing and also have relationships with vendors allow- ing them to obtain the best prices for their clients. However, if the ASC wants to contract indepen- dently, it is important administrators understand physician preferences and how those preferences affect the center's operating budget, notes Mr. Mathew. "When the center is a physician-owned organization, there are plenty of opportunities to talk to physicians to ascertain which supplies they are using and why," he says. Securing the backing of your physicians, and even including them in your conversations with ven- dors, is important, says Holly LeRoux, MS, RN, director of operations for PINNACLE III at Boul- der (Colo.) Community Musculoskeletal Surgery Center. "Having physicians present at vendor meetings and being willing to switch vendors if the discussion is unproductive can be powerful. Physician backing can help bring prices down." Additionally, ASC staff members responsible for negotiating with vendors must have in-depth knowledge of the products the center needs and possible alternative products, as well as a good rapport with the vendors and representatives. Keeping supply costs low In addition to ensuring an appropriate price from the outset, there are a number of strategies sur- gery centers can employ to keep orthopedic sup- ply costs in check. 1. Know the cost-per-case for all proce- dures. ASC administrators who want to cut or- thopedic supply costs first need to have a detailed understanding of all case costs. "I look at the pro- cedure code(s) as well as the corresponding sup- ply and staff costs related to each case type," says Mr. Mathew. 2. Get physicians on-board. This is a basic, yet powerful tool, to reduce supply costs. Physi- cians determine the purchase of implants and devices in accordance with the type of procedure being performed and their comfort level with varying products. Thus, switching to different and more cost-effective supplies requires physi- cian buy-in. "I sit down with every physician," says Sasha Mey- er, RN, MSN, clinical director at Orthopaedic and Spine Center of Southern Colorado. "We review reimbursement versus implant cost data and then allow physicians to make the best decision related to optimal patient outcomes." Preparing implant cost and reimbursement data before talking to physicians is key, Ms. Meyer adds. Go into the conversation with information regarding reimbursement and implant options as well as best and worst case scenarios for using one product versus another. 3. Avoid overstocking. According to Cicily Wilson, materials manager at Boulder Com- munity Musculoskeletal Surgery Center, a common mistake surgery centers make is over- stocking during shortages or supply crises. ASC administrators and materials managers need to be able to maneuver through different sys- tems and sets of information to keep tabs on stock and prices. This will allow them to make evidence-based decisions regarding how many supplies they need to order. "Pace yourself as best you can when it comes to ordering sup- plies," says Ms. Wilson. 4. Appoint a materials manager you can trust. Appoint the right employee to the role of materials manager. "An administrator can keep a pulse on supply chain management but you need someone looking into the supply chain regularly. You need someone you can trust and who is passionate about keeping costs low," says Mr. Mathew. 5. Engage in reprocessing. Ms. LeRoux suggests looking for opportunities to reprocess single-use medical supplies for orthopedic and other procedures. Actively looking for reprocess- ing opportunities can help reduce supply costs significantly. 6. Keep preference cards up-to-date. Phy- sician preference cards do more harm than good if they are not regularly updated. According to Mr. Mathew, updated preference cards not only let staff know what is needed in the operating room for each procedure, they help staff members avoid opening unnecessary supplies. 7. Instill a culture of collaboration. Keeping orthopedic supply costs low requires a collabora- tive effort at a surgery center. "Everyone — the administrator, the materials manager, the phy- sicians — has to engage in the effort to contain costs," says Ms. LeRoux. "You must promote a cul- ture that is willing to actively look for ways to be cost-effective." n Slashing Supply Costs With Orthopedic Preference Items — 7 Strategies By Anuja Vaidya Running an ASC is tough. Our experts can help. October 22 - 24, 2015 • Swissôtel - Chicago, Illinois learn more & register at https://www.regonline.com/22ndAnnualASC SAVE THE DATE Becker's ASC 22nd Annual Meeting The Business and Operations of ASCs

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