3 ASC Financial Tips for 2020
November 17, 2019 Tweet
As 2019 draws to a close, ASCs are busy with an uptick in end-of-year cases. But ASC leaders must also capitalize on this time to assess their facility’s success with meeting financial goals and look ahead with their team to build a sound financial plan for the year ahead.
The Periop Life recently spoke with Jan Davidson, MSN, RN, CNOR(E), CASC, director of AORN’s Ambulatory Surgery Division, to get her advice on celebrating financial wins and planning for an even better financial year in 2020. Here are her three tips to ASC administrators:
- Scrutinize Your 2019 Financial Data
- Refine Your 2020 Financial Plan
Davidson's first suggestion is to develop a five-year business plan based on certain assumptions. Then compare 2019 monthly financial statements to overall goals to achieve efficiency and effectiveness in metrics around patient care and profitability.
She says the information gained from monthly financial statements also can help with benchmarking against industry standards, obtaining data for research and analysis, and planning for the future.
"Look for trends in your center to help you dial in financial goals for the new year," Davidson suggests. For example, look for trends that show specific times of year when you might need more or less staffing.
Here are several other questions Davidson says ASC administrators should be asking themselves as they look to financial success in 2020:
- Would it be more cost-effective to have your implants on consignment?
- Are you actually using that expensive piece of equipment you invested in?
- Are you paying maintenance fees for equipment you no longer use?
- What are your supply costs?
- Do you have any physicians that are nearing retirement age, and should you be recruiting new physicians?
- Should you acquire a new service line that meets the needs of your community, whether it’s total joint replacements, or, if your center is located in an area with a lot of young families, for example, should you consider adding a physician who practices sports medicine, or pediatric ENT?
No matter what changes you consider, make sure to keep you staff informed of your monthly costs because this knowledge will help them be more aware of the costs of the supplies they are opening, Davidson says. "Consider having a ‘Price is Right’ game and let the different teams guess the price of different supplies. You can make it interactive and fun while still getting the point across about supply costs."
Making time to educate your team about other financial details such as the difference between productive hours versus non-productive hours will help staff understand why they may be asked to go home when cases are finished for the day, even if that means they don’t get their full shift in, she adds. Involving your staff helps with accountability.
Looking for more good advice to exceed financial goals in 2020? Make plans to attend the full day program on financial management at the ASC Summit March 28–29 in Anaheim, CA.