Here are eight best practices orthopedic-driven ASCs can adopt to ensure their long-term success.
1. Strategically negotiate contracts with insurance companies. Supply costs are arguably one of an ASC's highest expenses. Given the high cost of procedures and especially implants, ASCs must work diligently and regularly with payors to ensure they are committing to financially sound contracts with reasonable coverage. For implant reimbursement specifically, Caryl A. Serbin, RN, BSN, LHRM, president and founder of Serbin Surgery Center Billing, urges orthopedic-driven ASCs to ensure they receive a low threshold for each implant; at least cost plus shipping and handling, and no limitations on the number of implants.
2. Add spine procedures to your orthopedic-driven ASC. Advancements in technology and technique have allowed more spine procedures to move from the hospital setting to ASCs where these procedures can be performed on a more time- and cost-efficient manner. Orthopedic-driven ASCs should consider adding spine procedures to their facility to increase patient volume and profitability. Some key considerations ASCs must be mindful of before making spine procedures fully available are buying necessary equipment, consulting with your their anesthesiologists and working with payors to make this a financially feasible venture.
3. Reduce costs for increased profitability. Challenging economic times and changing Medicare reimbursements are forcing ASCs to think of more creative ways to improve their bottom line. Orthopedic-driven ASCs should analyze supply costs to see where more money can be saved. This may mean reworking contracts with vendors who supply ASCs with disposable items or large equipment. Becky Mann, director of Houston Orthopedic Surgery Center in Warner Robins, Ga., suggests using a group purchasing organization is one way to ensure you are getting the best deals on supplies; however, comparing GPO prices with outside vendors is one consideration ASCs should also keep in mind.
4. Appoint individuals to key leadership roles. Ralph Gambardella, MD, an orthopedic surgeon and president of Kerlan-Jobe Surgery Center in Los Angeles, says every successful ASC should have five key leadership roles filled: a medical director, administrator, director of nursing, materials manager and business office manager. These five leaders should have the appropriate expertise to effectively lead the ASC toward long-term success.
5. Hire and maintain a strong team of orthopedic physicians. The ASC market has boomed tremendously since the first one was established more than 30 years ago, and because of that ASCs must work harder than ever to maintain a competitive edge in their communities. One way to do this is form a strong and reputable team of orthopedic physicians and staff members who can collectively achieve excellent clinical outcomes, patient satisfaction and high throughput. David Ott, MD, founder of Gateway Surgery Center in Phoenix, Ariz., says ASCs should turn to their own physicians in reaching out to other community physicians who can bring more cases and their great reputation to the facility. Physicians and staff members are also retained by distributing bonuses for great performance.
6. Use technology to reduce costs, maximize efficiency and analyze profitability. Although investments in healthcare information technology may be burdensome and costly on the front end, an ASC's return-on-investment after deploying IT systems is plentiful. Midlands Orthopaedics Surgery Center in Columbia, S.C., uses its IT system to measure cost per CPT and per surgeon. In turn, those measurements can be used with insurance companies to rework contracts and with physicians to influence their behavior.
7. Benchmark your ASC's performance. By internally benchmarking various clinical and financial aspects, orthopedic-driven ASCs can more effectively assess how to improve areas of weakness and determine how the facility performs compared to national or state-level data. Various organizations regularly publish benchmarking data on a wide array of indicators, including operating expense and case volume.
8. Continuously measure patient satisfaction. Committing your ASC to closely monitoring this crucial measurement makes all the difference in not only making sure patients feel safe and welcome at your surgery center but also ensuring your customer services is a reason for them to come back to your facility. Angie Laux, administrator of Bellin Orthopedic Surgery Center in Green Bay, Wis., says the ASC measures patient satisfaction by having visitors fill out online surveys, which has a higher return rate than paper surveys.
1. Strategically negotiate contracts with insurance companies. Supply costs are arguably one of an ASC's highest expenses. Given the high cost of procedures and especially implants, ASCs must work diligently and regularly with payors to ensure they are committing to financially sound contracts with reasonable coverage. For implant reimbursement specifically, Caryl A. Serbin, RN, BSN, LHRM, president and founder of Serbin Surgery Center Billing, urges orthopedic-driven ASCs to ensure they receive a low threshold for each implant; at least cost plus shipping and handling, and no limitations on the number of implants.
2. Add spine procedures to your orthopedic-driven ASC. Advancements in technology and technique have allowed more spine procedures to move from the hospital setting to ASCs where these procedures can be performed on a more time- and cost-efficient manner. Orthopedic-driven ASCs should consider adding spine procedures to their facility to increase patient volume and profitability. Some key considerations ASCs must be mindful of before making spine procedures fully available are buying necessary equipment, consulting with your their anesthesiologists and working with payors to make this a financially feasible venture.
3. Reduce costs for increased profitability. Challenging economic times and changing Medicare reimbursements are forcing ASCs to think of more creative ways to improve their bottom line. Orthopedic-driven ASCs should analyze supply costs to see where more money can be saved. This may mean reworking contracts with vendors who supply ASCs with disposable items or large equipment. Becky Mann, director of Houston Orthopedic Surgery Center in Warner Robins, Ga., suggests using a group purchasing organization is one way to ensure you are getting the best deals on supplies; however, comparing GPO prices with outside vendors is one consideration ASCs should also keep in mind.
4. Appoint individuals to key leadership roles. Ralph Gambardella, MD, an orthopedic surgeon and president of Kerlan-Jobe Surgery Center in Los Angeles, says every successful ASC should have five key leadership roles filled: a medical director, administrator, director of nursing, materials manager and business office manager. These five leaders should have the appropriate expertise to effectively lead the ASC toward long-term success.
5. Hire and maintain a strong team of orthopedic physicians. The ASC market has boomed tremendously since the first one was established more than 30 years ago, and because of that ASCs must work harder than ever to maintain a competitive edge in their communities. One way to do this is form a strong and reputable team of orthopedic physicians and staff members who can collectively achieve excellent clinical outcomes, patient satisfaction and high throughput. David Ott, MD, founder of Gateway Surgery Center in Phoenix, Ariz., says ASCs should turn to their own physicians in reaching out to other community physicians who can bring more cases and their great reputation to the facility. Physicians and staff members are also retained by distributing bonuses for great performance.
6. Use technology to reduce costs, maximize efficiency and analyze profitability. Although investments in healthcare information technology may be burdensome and costly on the front end, an ASC's return-on-investment after deploying IT systems is plentiful. Midlands Orthopaedics Surgery Center in Columbia, S.C., uses its IT system to measure cost per CPT and per surgeon. In turn, those measurements can be used with insurance companies to rework contracts and with physicians to influence their behavior.
7. Benchmark your ASC's performance. By internally benchmarking various clinical and financial aspects, orthopedic-driven ASCs can more effectively assess how to improve areas of weakness and determine how the facility performs compared to national or state-level data. Various organizations regularly publish benchmarking data on a wide array of indicators, including operating expense and case volume.
8. Continuously measure patient satisfaction. Committing your ASC to closely monitoring this crucial measurement makes all the difference in not only making sure patients feel safe and welcome at your surgery center but also ensuring your customer services is a reason for them to come back to your facility. Angie Laux, administrator of Bellin Orthopedic Surgery Center in Green Bay, Wis., says the ASC measures patient satisfaction by having visitors fill out online surveys, which has a higher return rate than paper surveys.