AMSURG Vendor Contracts Reduce Surgery Center's Medical Supply Expenses
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Center Profile
Oregon’s first free-standing ambulatory surgery center, Bend Surgery Center, performs more than 13,000 cases annually, and specializes in a wide variety of surgical services, including gastroenterology, orthopedics, ophthalmology, pain management, general surgery and ear, nose and throat. The center partnered with AMSURG in 2014.
The Challenge
Medical supply costs are predicted to continue increasing at a sizeable rate of approximately 6.5 percent. Whether through renegotiating vendor contracts, changing vendors or switching to less costly products, healthcare providers like Bend Surgery Center must find ways to control and reduce these costs that equate to approximately 35 percent of its total operating expenses.
Unique Solutions
By partnering with AMSURG, surgery centers have access to multiple savings opportunities including:
- Joining the Group Purchasing Organization (GPO)
- Negotiated corporate vendor contracts
- Contract leveraging and/or tier access pricing
- Alternative product options
AMSURG’s Materials Management Department completed a Purchasing Business Review (PBR), a detailed analysis of a center’s historical purchasing activity, with their new partner, Bend Surgery Center. A PBR is completed on all new ASC partnerships to identify cost savings opportunities to include:
- Medical supplies
- Pharmaceuticals
- Linen
- Medical gas
- Waste disposal
- Equipment service and maintenance agreements
AMSURG presented the identified cost savings opportunities to the Center.
- Recommended product changes were reviewed and approved by the physicians before being implemented.
- Samples of recommended product changes were ordered and trialed by physicians and staff.
- 83 percent of the savings opportunities were accomplished by simply joining AMSURG’s GPO with the center continuing to utilize current vendors and same products.
Results
AMSURG’s GPO and negotiated corporate vendor contracts bring immediate value to the new partnership:
- 15 percent reduction in identified expenses
- More than $250,000 in savings opportunities