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Four quick tips to cut costs, increase profits

Ambulatory Safety Monitor, August 4, 2004

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Operating an ambulatory center is becoming more expensive due to high malpractice premiums, employee salaries and benefits, and new equipment purchases. Cutting costs is crucial to help boost your center's profits because there are only so many procedures you can fit into your schedule to increase reimbursement.

Susan Hollander, MBA, CHE, of Aspen Healthcare, Inc., in Whitsett, NC, and Andrea Hyatt, CASC, of the Dulaney Eye Institute in Towson, MD, offer advice for reducing equipment and labor costs-two areas that account for a majority of spending.

Negotiate when ordering supplies

Nurses often order supplies because they are familiar with the equipment, know what supplies are necessary, and can get beyond the product representative's sales pitch to determine the usefulness of the product. However, make sure whoever orders supplies understands the financial impact of these decisions.

Tip: Consider having all sales representatives deal with only one member of your staff.

Belonging to a group purchasing organization (GPO) is a good way to finagle better deals on supplies. It can help you get lower prices on equipment and medications, says Hollander. But you can sometimes negotiate even better deals with suppliers on your own if you tell them that you belong to a GPO and use that price to start negotiations.

Before ordering, look through your inventory and see how many days' worth of supplies you have. Try to keep anywhere from a 30- to 60-day supply of products you use frequently, says Hollander.

Tip: When ordering supplies, order the most expensive items first. It is easier to use leftover money to buy lower-cost items.

Tip: Weigh the pros and cons when deciding between reusable or disposable products. Although reusable products tend to be less expensive, factor in the time it takes to reprocess the devices. Extra time can mean slower turnover between cases.

Reel in your labor costs

Hiring the best staff is a big part in your center's success. One way to judge whether you need to hire additional staff is to study one area of your center for 15 minutes, such as the preoperative area or the post-anesthesia care unit, every day at the same time for two weeks.

This exercise will help determine whether staff are overworked, says Hyatt.

Tip: Cross-train staff members, such as operating room technicians, to assist in other areas. This will increase productivity without the expense of hiring new staff.

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