2. — Part II
By Bill Hazen
Case Study: New Processes,
New Software Help ASC Reach Elusive Goals
Center streamlines cost, revenue and patient satisfaction through use of technology
L ike most ambulatory surgery centers (ASCs), the Surgery
Center at Pelham in Greer, S.C., is constantly reminded
of the need to accomplish challenging goals that are often
thought to be contradictory: reducing operating costs, improving patient
satisfaction, and increasing net revenue per case.
broken down by stage of the visit. We track
a patient’s time in the facility very closely,
because the longer a patient’s visit lasts, the
less likely the patient will be satisfied. And,
of course, the average length of patient visits
tracks closely with costs. Our goal is to
safely limit the overall length of patient stay
to the least amount of time possible, which
The road to meeting those goals is a modules working in unison to promote has translated into significant cost savings
steep one, especially in a surgical practice cost savings and streamlined management for the center.
that, like most, comprises busy staff with functions. Included in the suite of The software was highly customized for
their own responsibilities to fill — from the applications are a schedule manager, clinical our 19 nurses to better meet the center’s
surgeons and nurses to procurement and manager, an electronic health records, specific needs. Although it is not a full-
administrative staff. The overall question financial manager, supply chain manager, blown electronic medical record, nursing
facing the facility was how could everyone report manager, an integration manager, staff can still perform certain clinical steps
be aligned to pull in the same direction, and patient satisfaction and benchmarking. and documentation functions such as case
toward the same set of goals, when, as the As one of the first centers to deploy management procedures. For instance, all
saying goes, the one hand rarely knew what Vision software, the Surgery Center at discrepancies and variances are tracked,
the other was doing? Pelham was aware that a common pitfall so when cancellations occur, the reasons
For the Surgery Center at Pelham, the of any software rollout is the failure to use are noted in the system. This information
solution consisted of two parts. First was the system to its fullest potential. We were is used to complete the ASC Association
the commitment from physicians and staff determined to utilize all of the system’s quarterly report.
to thoroughly reengineer the processes functionalities to achieve the goals we had Since reshaping our processes and
we had become accustomed to. Second identified. This was an important decision, adopting the new software, the center
was the judicious application of software because it enabled us to fully mesh our goals has enjoyed very strong results. Patient
that addresses a full range of practice- with the system’s capabilities. satisfaction stands at 99.85 percent. In
management functions. And it goes without Today, our practice-management software July 2007, case cost dropped to a record
saying that the entire staff was to remain handles virtually all management functions, low of $159 — including medical supplies,
constantly mindful of the fact that high including real-time, live monitoring of implants and drugs. Average case cost now
quality patient care and patient satisfaction charges during procedures in the operating stands at a modest $214, and inventory has
are always our overriding goals. room. When a case is over, an administrator been kept below $205,000 for our 450 cases
can meet the surgeon at the door and per month.
Successful Process Transformation immediately present the full cost of the case. Another important element of the center’s
The foundation of our successful Cost tracking is truly comprehensive, down improvements to practice management is
process transformation has come from the to $0.04 thermometer covers. the implementation of a quarterly incentive
use of Vision software from Birmingham, Vision also features a tracking system program. We use Vision to track the bonus
Ala.-based SourceMedical. Vision is a that allows staff to monitor the exact amount criteria, and we have been very pleased at
fully integrated solution that includes eight of time a patient spends in the center, the level of detail the system allows us to
3. “The foundation of our successful process transformation
has come from the use of Vision software from amounts of paperwork for the end of a shift.
As this example demonstrates, a major
Birmingham, Ala.-based SourceMedical.” priority of our process upgrade was to be
more mindful of the time constraints that
everyone faces: our physicians, our staff, and
of course, our patients.
monitor. For staff to collect the full bonus, Even the physicians are closely monitored
The results to date have more than lived
the following five criteria must be met: when it comes to case costs. For example,
up to the expectations of physicians and
each physician is assigned a confidential
staff, and although every staff member has
1. Inventory must be below $205,000 number that represents his or her costs per
had to alter his or her work habits to meet
2. Net revenue per case must be $1,500 or higher procedure. So when evaluating the cost of
our efficiency goals, the results have made
3. Patient satisfaction must be 98 percent or higher an ACL reconstruction, each physician can
those efforts worthwhile. Indeed, physicians
4. Physician satisfaction must be above 98 see where he or she falls in the cost arena.
and administrators at other ASCs might
percent Highlighting those numbers prompts the
well find our example to be useful as they
5. Full-time equivalents (FTEs) must be 13 or physicians to share with each other the best
look for ways to navigate a changing, often
fewer per case strategies for performing the procedure
challenging, healthcare environment. o
with the least expense. In many cases, our
Other tactics, used in conjunction with the physicians gravitate to using the same supply
software, have enabled the center to achieve sources as a result of sharing this information,
Bill Hazen, RN, is the practice
an overall reduction in operating costs. For which leads to better prices through their
administrator for the
example, we obtain supplies on consignment group purchasing power. Surgery Center at Pelham.
when possible, use single-source vendors, and And last, but certainly not least, Vision He can be reached at
use custom packs for various cases. These and software allows staff to handle their bhazen@srhs.com.
other initiatives have contributed to streamlining administrative duties throughout the course
the center’s operations and reducing costs. of the day, rather than postponing significant
SrcMed-TSCrprt08-2H4C.indd 1 4/23/08 8:37:47 AM