BUSINESS ADVISOR
unaware they use costly supplies, which is another benefit of presenting them with specific case-cost data. For example, one of our surgeons used a $27,606 mesh during 2 hernia repairs. He thought it was the best option at the time, but in fact there were less costly alternatives that would have achieved the same clinical results. He was way off the charts in his average costs-per-case because of using that mesh, and immediately decided to find another type to use.
3. Stay current
Constantly monitor case-cost data. We used to review the numbers only occasionally — if a surgeon inquired about how much he was spending on a particular surgery, it took months to pull the numbers — which isn't enough to recognize costly trends and act on them before they turn budgets red.
Create monthly spreadsheets to note in separate columns the high-cost supplies, procedures in which they're used, average costs per case, action steps to replace the expensive items, next steps required to fulfill the action steps and the ultimate cost-saving results.
My business director prepares case-cost data on a monthly basis, which our surgical nurse managers check periodically for opportunities to save. They also review preference cards on their own and bring cost-saving ideas to the meeting of the surgical services leaders, so we can let the surgeons know which items they should consider replacing.
Focus on shaving 5% of a case's cost, then 10%. When you achieve those goals, drill deeper to see what else you can trim, until you can't trim anymore. Don't ignore a case once you've reduced its costs. Closely monitor the situation to ensure expenses don't start to creep slowly back up to negate all the hard work you put in on the front end.
