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Volume 7 Issue 4   April 2008
— 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
“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
As featured in the April issue of Today’s Surgicenter, SourceMedical’s Vision software helped the
             Surgery Center at Pelham in Greer, S.C. reach challenging goals when it came to costs, revenue and
             patient satisfaction. More information on Vision and the ways in which it can help your facility reach
             your goals are highlighted below.

             Vision: Maximizing the Performance of Surgical Facilities
             Built on market innovations, Vision sets an elevated standard in surgery center management software, meeting the needs of
             highly specialized ambulatory surgery centers (ASC) and surgical hospitals.

             Vision’s task management, workflow automation, proactive system alerts, dashboards, document management, electronic
             data interchange, and web-enabled design are just a few of the many new features that are a result of SourceMedical’s
             close industry collaboration and technology expertise. Vision provides security, scalability, integration with third-party systems,
             and flexibility for growth with:
               • Minimal Maintenance and Investment
               • Flexible Deployment and Optional Enterprise Capabilities
               • Forward-Looking Industry Standard Protocols
               • Rich Internet Application

             SourceMedical’s Vision software continually improves care and adds unique services, providing facilities the option to purchase
             only those components they require, and the availability to build in additional functionalities when needed.
             Vision Modules:                                 Optional Products  Services:
             • Schedule Manager  Vision WebSuite            • Code Manager                              • Workflow Manager
             • Clinical Manager                              • SourcePlus Passport                       • Electronic Document
             • Financial Manager                             • Ad Hoc Reporting                            Management
             • Vision 360: Supply Chain Manager              • SourcePlus EdgeSurvey                     • SourcePlus BI
             • Report Manager                                • RCM/EDI                                   • Collection Manager
             • Integration Manager                           • State Reporting                           • SourcePlus EHR
                                                             • SourcePlus PurchaseConnection             • Anesthesia Organization Unit
             Vision: Seamless Integration of Clinical and Administrative Processes
             Packed with comprehensive end-to-end functionality, Vision optimizes facility management, increases productivity and
             operational efficiency, accelerates cash flow, and enhances the quality of care and patient safety. Whether you are a
             freestanding facility or part of a corporate network, Vision’s enterprise-wide system intuitively follows your facility’s workflow,
             increasing cash flow, boosting productivity and reducing costs, all while helping you to proactively manage your business.


                                                                                                             Vision intuitively follows your
                                                                                                             facility’s workflow.


                                                                                                               T find out how SourceMedical
                                                                                                                o
                                                                                                               can help you achieve your
                                                                                                               clinical and financial goals,
                                                                                                               call 800-719-1904
                                                                                                               or visit www.sourcemed.net.




             100 Grandview Place, Suite 400, Birmingham, AL 35243    |   800-719-1904     |   www.sourcemed.net      |   info@sourcemed.net

32	   today’s surgicenter	 Reproduced with permission from today’s surgicenter, April 2008. For electronic usage only. www.surgicenteronline.com
                                                                    April 2008	                                                           5090
                                 Not to be printed in any format. ©2008 Virgo Publishing. All Rights Reserved.

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Center Streamlines Cost, Revenue and Patient Satisfaction!

  • 1. Volume 7 Issue 4 April 2008
  • 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
  • 4. As featured in the April issue of Today’s Surgicenter, SourceMedical’s Vision software helped the Surgery Center at Pelham in Greer, S.C. reach challenging goals when it came to costs, revenue and patient satisfaction. More information on Vision and the ways in which it can help your facility reach your goals are highlighted below. Vision: Maximizing the Performance of Surgical Facilities Built on market innovations, Vision sets an elevated standard in surgery center management software, meeting the needs of highly specialized ambulatory surgery centers (ASC) and surgical hospitals. Vision’s task management, workflow automation, proactive system alerts, dashboards, document management, electronic data interchange, and web-enabled design are just a few of the many new features that are a result of SourceMedical’s close industry collaboration and technology expertise. Vision provides security, scalability, integration with third-party systems, and flexibility for growth with: • Minimal Maintenance and Investment • Flexible Deployment and Optional Enterprise Capabilities • Forward-Looking Industry Standard Protocols • Rich Internet Application SourceMedical’s Vision software continually improves care and adds unique services, providing facilities the option to purchase only those components they require, and the availability to build in additional functionalities when needed. Vision Modules: Optional Products Services: • Schedule Manager Vision WebSuite • Code Manager • Workflow Manager • Clinical Manager • SourcePlus Passport • Electronic Document • Financial Manager • Ad Hoc Reporting Management • Vision 360: Supply Chain Manager • SourcePlus EdgeSurvey • SourcePlus BI • Report Manager • RCM/EDI • Collection Manager • Integration Manager • State Reporting • SourcePlus EHR • SourcePlus PurchaseConnection • Anesthesia Organization Unit Vision: Seamless Integration of Clinical and Administrative Processes Packed with comprehensive end-to-end functionality, Vision optimizes facility management, increases productivity and operational efficiency, accelerates cash flow, and enhances the quality of care and patient safety. Whether you are a freestanding facility or part of a corporate network, Vision’s enterprise-wide system intuitively follows your facility’s workflow, increasing cash flow, boosting productivity and reducing costs, all while helping you to proactively manage your business. Vision intuitively follows your facility’s workflow. T find out how SourceMedical o can help you achieve your clinical and financial goals, call 800-719-1904 or visit www.sourcemed.net. 100 Grandview Place, Suite 400, Birmingham, AL 35243 | 800-719-1904 | www.sourcemed.net | info@sourcemed.net 32 today’s surgicenter Reproduced with permission from today’s surgicenter, April 2008. For electronic usage only. www.surgicenteronline.com April 2008 5090 Not to be printed in any format. ©2008 Virgo Publishing. All Rights Reserved.