1. Look for cheaper alternatives for equipment. After bringing on the new spine physician in late 2009, Midlands Orthopaedics faced the challenge of researching and buying new equipment and supplies the new physician would need in order to perform spine procedures. Belinda Rutledge, administrator, of Midlands Orthopaedics Surgery Center in Columbia, S.C., says she worked closely with the physician for several months before he officially joined the surgery center so they could jointly agree on the least expensive options without compromising on the quality of the instruments.
“We didn’t want to spend a lot of money on a spine table, and it took about eight months just to find a quality used spine table because a brand new one will cost you around $160,000,” she says. “We finally purchased a used spine table for half that price after working with three vendors and working out the best deal. The key is that we worked with that surgeon to develop and bring in all the equipment he would need to build his practice.”
From “6 Ways to Increase Profitability in Your Orthopedic-Driven ASC.”
2. Know practice data during payor negotiations. When going into payor negotiations, know the practice’s statistical data to prove that the practice is maximizing return on the payor’s premium dollars. This data includes, but is not limited to, the number of x-rays and MRIs the physicians order, the number of rehabilitation days and the number of days patients spend at hospitals for inpatient procedures. Practice administrators should also be able to explain how the physicians work with hospital staff to make sure patients are spending the least number of days in the hospital within the appropriate standards of care. “This forces the insurance companies to go back and look at their own data if they haven’t done that already and that puts the administrator in a strong position,” says Patrick Hinton, executive director of the Jacksonville (Fla.) Orthopaedic Institute.
The administrator should also know how his or her statistics match up against other area practices. If the practice costs are higher than they are at others, know how to explain these circumstances to the payor. “Say we have higher costs compared to other orthopedic providers, but we have a higher concentration of subspecialists, so we see a lot of orthopedic complications other physicians wouldn’t see, which drives the cost up,” says Mr. Hinton. “This helps make the case that the companies are getting value for what they pay for.”
From “6 Best Practices to Create a Thriving Orthopedic Practice.”
3. Reassign staff responsibilities to maximize productivity. We reviewed front office job duties in both our physical therapy department and our clinic. We noticed the support staff in PT had several hours during the day that were “down time” hours, says Penny Forbes, an administrator at Sierra Regional Spine Institute in Reno. This position requires the employee to be present throughout the day to handle calls, scheduling and billing, but this employee is efficient and was often left with little to do for various periods throughout the day.
In contrast, on the clinic side our front office supervisor often runs out of time because her duties include editing dictation, daily scanning, helping with phones, check out and supervising five other staff members. She also covers each member of the staff when one is out on vacation or sick leave. During this coverage period the dictation and scanning duties are often delayed.
So we assigned the daily scanning to the PT front office staff member to fill her down time, and freed up the clinic supervisor who could then continue to cover not only in the front office but we were able to extend her reach to the x-ray desk and even to the clinic. We have thus enabled our employees to multi-task at a greater level without hiring additional staff.
From “3 Steps to Improve Spine Efficiency and Cut Costs.”
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- and spine-driven ASCs could combat this by learning more about the device industry, as well as effectively coding and managing the cost of orthopedic devices. These 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.”
From “5 Ways to Reduce Supply Costs at Your Orthopedic-Driven ASC.”
