Brenda Mastopietro, RN, MS, CNOR, president of Arizona Ambulatory Surgery Center Association and chief nursing officer for Banner Surgery Centers, shares five ways ASCs can control costs related to OR supplies.
1. Hire a knowledgeable materials manager. Since ASC supply costs generally make up a large portion of an ASC's total expenses, the first step to containing OR costs is selecting a knowledgeable staff member with experience in supply management. Ms. Mastopietro says she has seen success with employees, such as a well-qualified surgical technician, that have come out of a surgery center background with a deep understanding of the types of supplies used in a surgery center. Some centers are doing well by having hired a person with a business background, she says.
2. Work with a group purchasing organization. Contracting with a GPO can help ASCs manage costs for the entire range of OR supplies, such as procedure packs, drapes, disposable endomechanical instrumentation, sterile supplies and so on. Ms. Mastopietro says an added benefit may be to also order pharmaceuticals through the GPO in addition to supplies.
"Freestanding ASCs that contract with a GPO have the buying power of many ASCs that have come together as a large group to negotiate better pricing due to the economies of scale through which many units will be sold," she says.
3. Consider alternative contracting. Ms. Mastopietro says although ASCs most commonly achieve improved OR supply prices through GPOs, they should be open to other resources and options for OR supplies. The key caveat is to ensure quality and not compromise patient safety in the pursuit of a great price point for OR supplies.
"Even though ASCs can certainly utilize a GPO, the materials manager can also do some researching online to see if there is better pricing through smaller companies or start-ups," she says. "Of course, ASCs will always want to work with reputable companies, but another way of containing OR supply costs is looking under every rock because costs of supplies are one of the most controllable expenses in an ASC."
4. Ensure accurate inventories. ASCs should be assessing OR inventory on a regular basis. Ms. Mastopietro says ASCs should be doing this at least twice a year, although some other larger surgery centers may want to assess OR inventory a bit more frequently. The key to assessing inventory is ensuring it is done accurately.
"The problem I see often is that inventories are done by a staff member who has not been trained correctly, so sometimes ASCs may not know what they really have on their shelves," she says. "Count sheets with all supplies listed that are relevant to inventory is a great way to ensure accuracy. Outdated supply sheets or incomplete count sheets is one of the red flags to having an incorrect inventory with huge negative budgetary implications."
Ms. Mastopietro suggests using the just-in-time method, which prevents tying up large amounts of money sitting on the shelves in unused supplies. "JIT inventory also makes counting inventory faster and more accurately," Ms Mastopietro says.
5. Consult the state association or other center. ASCs shouldn't be shy about reaching out to other resources, such as their respective state ASC associations or other surgery centers, to see how OR supply cost-containment is being achieved.
"Our state association leaders have clinical contacts, so they can certainly help with pointing surgery centers in the right direction in terms of which companies are great to work with," Ms. Mastopietro says. "Materials managers should build relationships with their peers at neighboring surgery centers. That way, in times of need or supply shortages, they can reach out and help or be helped quickly to preserve safe patient care.
Learn more about Arizona Ambulatory Surgery Center Association.
1. Hire a knowledgeable materials manager. Since ASC supply costs generally make up a large portion of an ASC's total expenses, the first step to containing OR costs is selecting a knowledgeable staff member with experience in supply management. Ms. Mastopietro says she has seen success with employees, such as a well-qualified surgical technician, that have come out of a surgery center background with a deep understanding of the types of supplies used in a surgery center. Some centers are doing well by having hired a person with a business background, she says.
2. Work with a group purchasing organization. Contracting with a GPO can help ASCs manage costs for the entire range of OR supplies, such as procedure packs, drapes, disposable endomechanical instrumentation, sterile supplies and so on. Ms. Mastopietro says an added benefit may be to also order pharmaceuticals through the GPO in addition to supplies.
"Freestanding ASCs that contract with a GPO have the buying power of many ASCs that have come together as a large group to negotiate better pricing due to the economies of scale through which many units will be sold," she says.
3. Consider alternative contracting. Ms. Mastopietro says although ASCs most commonly achieve improved OR supply prices through GPOs, they should be open to other resources and options for OR supplies. The key caveat is to ensure quality and not compromise patient safety in the pursuit of a great price point for OR supplies.
"Even though ASCs can certainly utilize a GPO, the materials manager can also do some researching online to see if there is better pricing through smaller companies or start-ups," she says. "Of course, ASCs will always want to work with reputable companies, but another way of containing OR supply costs is looking under every rock because costs of supplies are one of the most controllable expenses in an ASC."
4. Ensure accurate inventories. ASCs should be assessing OR inventory on a regular basis. Ms. Mastopietro says ASCs should be doing this at least twice a year, although some other larger surgery centers may want to assess OR inventory a bit more frequently. The key to assessing inventory is ensuring it is done accurately.
"The problem I see often is that inventories are done by a staff member who has not been trained correctly, so sometimes ASCs may not know what they really have on their shelves," she says. "Count sheets with all supplies listed that are relevant to inventory is a great way to ensure accuracy. Outdated supply sheets or incomplete count sheets is one of the red flags to having an incorrect inventory with huge negative budgetary implications."
Ms. Mastopietro suggests using the just-in-time method, which prevents tying up large amounts of money sitting on the shelves in unused supplies. "JIT inventory also makes counting inventory faster and more accurately," Ms Mastopietro says.
5. Consult the state association or other center. ASCs shouldn't be shy about reaching out to other resources, such as their respective state ASC associations or other surgery centers, to see how OR supply cost-containment is being achieved.
"Our state association leaders have clinical contacts, so they can certainly help with pointing surgery centers in the right direction in terms of which companies are great to work with," Ms. Mastopietro says. "Materials managers should build relationships with their peers at neighboring surgery centers. That way, in times of need or supply shortages, they can reach out and help or be helped quickly to preserve safe patient care.
Learn more about Arizona Ambulatory Surgery Center Association.