Eyeworld

T he ability to offer cost-effec- tive healthcare is becoming increasingly challenging. Healthcare facilities struggle to offer more care with less reimbursement and other regulatory hurdles. How can executives reposi- tion operational strategies to drive down costs, improve efficiencies, and create profitability? Outsourc- ing. Outsourcing niche industry services such as cataract surgery services makes good financial sense, particularly for those facilities look- ing for a way to convert fixed costs to variable costs. Specialized companies (out- sourcing companies) have the ability to provide equipment, products, and services to hospitals, ASCs, and pri- vate physician groups at lower prices than if the facility were to coordi- nate and organize the services in- house. Some of the benefits facilities can expect from outsourcing in- clude: • reduced capital expenditures • eliminated supply costs • eliminated inventory and spoilage costs • eliminated equipment repair and maintenance costs • enhanced staffing with technical expertise With the impending healthcare reform, facilities that own their oph- thalmic equipment are increasingly turning to outsourcing services as a viable solution to lower their case costs and ensure regulatory compli- ance. Many hospitals today use com- panies to outsource their disposable needs. Outsourcing companies can offer hospitals and ASCs the same savings and support for cataract sur- gery services. How does one go from owning equipment and inventory to contracting with an outsourcing company that provides every- thing? The process is simple, convenient, and, most importantly, economi- cally worthwhile. Here are the steps one should expect from an outsourc- ing company: Observation visit and assess- ment analysis: An outsourcing rep- resentative will spend time at the facility observing the surgery sched- ule, doctor's preferences, operational workflow, etc. In addition, he/she will evaluate the on-site equipment and doctor requirements. Tip: Ensure the staff is prepared to provide specific information about the owned equipment, aver- age number of cataract cases per- formed annually, preferred instrumentation by surgeon, etc. Savings consultation: Some outsourcing companies prepare a comprehensive cost savings analysis and review the report in detail with the facility administrator, director of surgery, and/or a surgical leader. Analysis reports generally include comparison savings on equipment, micro-instrument sets, IOLs, medical supplies, and caseloads. In some cases, "best practice" information may be shared relative to operating and room efficiencies. If requested during the analysis, some outsourc- ing companies can also provide in- formation on a doctor's referral patterns and related caseloads. Tip: Be sure the outsourcing company is a vendor neutral sup- plier, meaning it negotiates pur- chases of equipment, supplies, and disposables from all manufacturers to offer the best possible pricing to clients. Some companies have exclu- sive partnerships with suppliers for selected products. Outsourcing com- panies utilize value-based pricing strategies and pass along the savings to hospitals and ASCs so they can make more cost-efficient allocations of their resources. Equipment transition: Out- sourcing companies purchase the ex- isting equipment from the facility at a fair market value price and remove it from the facility. On each sched- uled day of surgery, a newer piece of equipment with the latest technol- ogy will be provided along with highly experienced technicians. Some facilities are "fixed sites" and keep equipment on-site if their case volume is high. Medical supply transition: In most cases, facilities sell the supplies on hand back to the outsourcing company at fair market value prices. On a go-forward basis, the outsourc- ing company takes over all purchas- ing, managing, and financing "headaches" related to these inven- toried products. On each scheduled day of surgery, an outsourcing repre- sentative brings in all needed prod- ucts based on the number of cases scheduled for that particular day. Schedule and inventory coor- dination: Once the decision is made to outsource, the communication process moves to a turnkey opera- tion process common with outsourc- ing companies. Representatives specialize in communicating and or- chestrating the logistical puzzle to ensure the proper protocol for the scheduling of cases, and work tire- lessly to secure successful outcomes. Tip: Many outsourcing partners also take care of all compliance and regulations standards, including Medicare compliance paperwork. In summary, the transition process from owning to outsourcing is simple and can result in expanded capital budgets, enhanced opera- tional efficiencies, and happier healthcare providers. Outsourcing saves facilities overhead and en- hances capital budgets. EW EW Ophthalmology Business 138 March 2011 Friday Focus Surveys are a member benefit of the American Society of Ophthalmic Administrators. For membership information contact asoa@asoa.org or 703-591-2220. ASOA, 4000 Legato Road, Suite 700, Fairfax, VA 22033. www.asoa.org. ASOA Friday Focus Surveys Focusing on the BUSINESS of Ophthalmology 1. Does your practice perform exit interviews? Response Percent Yes 65% No 35% ABOUT THE AUTHOR Ann S. Deters, M.B.A., C.P.A., is CEO and co-founder of Vantage Outsourcing, Effingham, Ill., which provides cataract outsourcing to hospitals and ASCs throughout the Midwest, northeast, south, southeast, and west. She can be reached at 800-871-5188. Ann S. Deters, M.B.A., C.P.A. From owning to outsourcing

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