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Topic: Operational challenges: Bringing down high energy costs

Ambulatory Surgery Reimbursement Update, October 7, 2008

Start with your utilities when looking for ways to trim costs, said John J. Goehle, MBA, CASC, CPA, vice president of finance at Facility Development & Management, LLC, in Orangeburg, NY.

Simple things like turning the heat down in the winter (or turning the air conditioning down in the summer) when the facility is not in use can go a long way to reduce the amount of energy you use, said Goehle in the August 13 HCPro, Inc., audio conference, “2009 ASC Proposed Rule: Prepare for Coding and Payment Changes.”

Also, turn off equipment when it’s not in use as long as the startup time and the startup energy used to turn this equipment back on is not cost-prohibitive, said Goehle.

“We found in one facility that by turning off the equipment that was not in use during the night hours and over the weekends, we were able to shave almost 50% of the energy costs from our bill,” he said. “That had a dramatic impact on our bottom line.”

ASCs could also be seeing dramatic increases in supply costs because many vendors are adding fuel surcharges. Some vendors could add as much as $3–$5 to every overnight delivery shipment charge. Evaluate your different vendors, and take a look at the medical supply companies with whom you work.

“If they have warehouses that are far from your location and they incur significant costs to get that material to your doorstep, you might want to find someone who is a little closer,” Goehle said.

The ripple effect of energy costs also extends to many ASC nursing staff members, many of whom are looking for significant salary adjustments due to the higher energy costs they face at home as well as changes in the cost of living.

Nurses who live a great distance away from the surgery centers might ask that the surgery center help pay for their fuel costs. Prepare to make some accommodations for these requests. They are unavoidable, and it’s important to keep your nurses happy to avoid losing them to another surgery center.

Editor’s note: This topic is from the October 2008 issue of Ambulatory Surgery Coding and Reimbursement Insider.

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