1. Run a lean shop. By establishing a par level, or an estimated case volume, every month, a surgery center is better able to anticipate what supplies will be needed on a regulate basis, says Cascade Spine Center in Tualatin, Ore.
“Let’s say we do 250 cases per month,” Ms. Stewart says. “We’ll want to have supplies on hand on a weekly basis to handle 250 bases per month. To establish a par level, we’ll see how many cases are scheduled and order a little below that par level in case our volume is down or if we have a physician who’s out. We order supplies to maintain that par level but not overstock.”
2. Actively compare vendors before contract negotiations. One way that ASCs can reduce case costs fairly easily is to reduce supply costs. Administrators or purchasing managers must actively compare vendor pricing to ensure that the center is getting the best deal on its supplies. Becky Mann, director of Houston Orthopedic Surgery Center in Warner Robins, Ga., recommends using a group purchasing organization to further reduce costs but recommends that purchasers continue to compare costs of the GPO with outside vendors rather than assume the GPO’s contract brings the best price.
Administrators should also encourage physicians to use the same brand and type of supplies, such as plates, screws and anchors, for similar cases, which reduces supply costs by reducing the number of vendors that an ASC uses. Showing physician-owners the savings of such uniformity is a fairly easy and often successful way to convince them to agree to a single supply set.
3. Make a final purchase with the orthopedic physicians. Signing a contract with a supplier for orthopedic devices without physician involvement can be detrimental to the financial health of your ASC. Obtaining feedback from physicians on potential supplies can help ASCs better gauge which orthopedic devices are worth investing in.
“Without getting physician feedback and buy-in, [orthopedic-driven ASCs] could end up paying out money for some extremely expensive orthopedic supplies while the ASC physicians are wanting to use another supply,” says Elaine Thomas, administrator at St. Francis Mooresville (Ind.) Surgery Center. “Facilities will want to make sure, before signing, that that particular orthopedic supply is the one the ASC’s physicians want to use.”
To get optimal feedback, Ms. Thomas suggests ASCs request a free trial of the orthopedic device if the ASC’s orthopedic physicians have not had a chance to already use it.
4. Stay updated on trends in the device industry. John Cherf, MD, president of OrthoIndex, says although the cost of orthopedics-related supplies, such as implants and other devices, continues to rise, orthopedic-driven ASCs could combat this by learning more about the device industry, as well as effectively coding and managing the cost of orthopedic devices. Orthopedic-driven ASCs can also manage costs by consulting third-party orthopedic technology management specialists.
“A third-party firm can educate ASCs that don’t have the experience or knowledge to capture appropriate pricing,” Dr. Cherf says. “These firms can help propagate buyer power, develop and manage supply chain contracts, leverage provider alignment, maintain compliance and much more.”
