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Tip of the week: Learn what a management firm can offer

Managed Care Weekly Advisor, June 27, 2007

Keep these tips in mind when deciding whether to hire a management firm.

  1. Architects Development firms often provide access to architects who can pinpoint hidden costs in the physical design of the center. They know what works best spatially, and they can assist with design decisions that result in more efficient investments.

  2. Licensing Quality management firms should be able to help you license and accredit your center with fewer snags than you may have encountered by doing it on your own.

  3. Operations Good management firms can operate your center efficiently because they have had opportunities to work out kinks in previous projects. They have a better sense of what works and what doesn't.

  4. Accounting Some firms offer a full complement of accounting services by performing both front- and back-end work in generating financial reports, providing a system to take care of payables, and implementing a system to handle and track accounts receivable.

  5. Staff member leasing This reduces your surgery center's risk, because development firms take ultimate responsibility for the leased staff members. In addition, management firms are often able to provide better benefits.

  6. Supply and materials management Most development firms can help procure equipment and manage your inventory and supplies. In the long run, they should ensure that you have the proper processes in place so that you don't build unnecessary inventory costs that reduce available cash. Management firms can also help prevent you from overbuying technological supplies.

  7. Bulk purchasing power Because development firms work with multiple centers, they can combine purchasing power, which can significantly improve supply costs per case.

  8. Access to a data warehouse Management firms maintain data warehouses, which you can access for a variety of comparisons. These data warehouses allow you to look at how your center performs according to industry benchmarks, yielding overall performance reports. You can also review data by certain criteria (e.g., by current procedural terminology code or surgeon), which allows you to manage your business more effectively.