9 Lessons Learned Along the Way

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No matter where your construction journey ends, here's some advice to consider.


You can tackle any job that's handed to you, right? But trust me, outfitting an entire supply room from scratch, negotiating insurance contracts and shopping for a building's worth of capital equipment will test that bring-it-on gumption. Here are 9 indispensable tips I picked up watching my facility evolve from a small eye center that hosted 500 cases a year to a surgical hospital whose physician-owners perform 10,000 procedures annually.

1. Ask around. After helping to open three surgical centers — a single-specialty ASC, a multi-specialty ASC and a surgical hospital — without changing jobs, my biggest advice for those taking on a construction project is to network with colleagues who've done it before. I've been working in the industry for 20 years and still call around for advice. Ask. Listen. Ask again. Heeding the advice of experienced peers will prevent many headaches.

2. Read up. Another potential source for guidance: trade journals, including the one you're reading right now. Use published reports to augment the insights gained from site visits. After reading an article about what software vendors can offer, for example, seek out peers who are familiar with how each system works in practice.

3. Investigate every option. We're currently in the market for an upgrade to our IT system. A committee of 12 has thus far gone on four site visits over a six-month research effort. We're following the golden rule of shopping for supplies or capital equipment: don't jump at the first option you see. A lot of money has been wasted when purchases are made without intensive and thorough research.

4. Understand personalities. During our facility's infancy, I managed six full-time employees, many of whom were my close friends. We worked together for a few physician-owners. It was an intimate group and an easy one to look after. As the staff grew in conjunction with our steadily increasing caseload, new talents — and personalities — were added to the mix. I'm now responsible for 180 employees. Working with six of my close friends? That was pretty easy. Balancing the personalities of 180? Not so simple. The essentials, however, remain the same. Take the time to truly understand your staff, with a strong consideration of who works well together — and who doesn't.

5. Hire teammates. Delegation is the key to successful management, whether you oversee a staff of 10 or 100. Make your job easier. Hire clinical and business team members that buy into the notion that no one is above performing mundane tasks that might be below their level of education or work experience. That may seem like staff management 101, but there are still those in the industry who won't look beyond their job description when things get busy.

Growing Gains

When the doors to our ophthalmic ASC opened in 1994, we were the first surgery center in town, a reality reflected in the 500 cases that trickled through the center that first year. The positives we offered — incredible case efficiency and personalized attention to surgeons — were innovative at the time. They were also the things that kept us from meeting initial volume expectations. The area's surgeons, never a group to accept significant change, felt comfortable operating in the town's full-service hospital and needed time to assess the surgery center concept.

We initially hosted cataract cases Monday through Wednesday, finishing by 11 a.m. each day. Since our rooms remained dark on Thursdays and Fridays, we reached out to gynecologic and orthopedic surgeons to fill the gaping holes in our schedule. It worked. The ORs were soon packed from morning until late afternoon, and in a matter of months we had to consider expanding our center's footprint.

At the end of 1995 we decided to take the plunge, jumping from two ORs to five during an 18-month construction project. The new ORs were filled to 80 percent capacity after a few months, a rate that increased steadily as we added complex cases with the potential for post-op overnight stays. We decided to build a seven-room overnight facility even though Medicare and private insurers didn't reimburse for patient visits longer than 24 hours. The new overnight rooms were used constantly 12 months after being built. By 2000, our five ORs were hosting close to 6,000 cases each year.

The next step in the facility evolutional chain — surgical hospital — was much more involved than framing out a few more procedure rooms. Our facility was (and is) physician-owned by surgeons from several subspecialties. Our orthopods championed the cause to become a surgical hospital, with an eye on adding total hip, total knee, total shoulder and back procedures to the case mix.

While perhaps logical, the transformation was a giant leap of faith. We consulted with countless people who owned and operated like facilities. Ultimately, the physician-owners added three ORs, bringing the facility's total to eight. The overnight facility was bumped from seven rooms to 16. On April 1, 2004, we opened as a surgical hospital for the first time. Fifteen years earlier, I was managing six employees. Now, close to 180 are in my charge. It's been quite a trip.

— Jay Sveen, CRNA

6. Be realistic. As your facility grows, so will the daily responsibilities of each employee. Having a nurse handle staff education and infection control in a single-specialty surgery center makes sense. Overloading a few employees with many job titles as your facility expands, however, is not good practice. With growth comes more responsibility. Greater responsibility demands greater time commitments to get the job done right. As you expand, hire quality full-time employees who can devote their efforts to important tasks instead of spreading too much individual responsibility across your staff.

7. Start slow? Don't be surprised if a famine precedes the feast. When you open a new facility, your ownership group won't see an immediate return on its investment. Set up your business plan to weather the storm of going without steady revenue for the first six months.

8. Embrace competition. Count on getting more attention from the competition as you gain more success and continue to grow your facility and services (see "Future of Specialty Hospitals Remains Dicey" on page 32). Surgery centers quickly become the object of close scrutiny by community hospitals. When we became a surgical hospital, however, the target on our doors became even bigger.

9. Share successes. Positive verbal recognition should be part of your daily routine but consider putting your money where your mouth is. Our physicians believe in revenue sharing, a policy that we've found keeps the entire staff focused on providing quality patient care in a fiscally responsible way. Including a bonus in an end-of-the-year payroll check works, but consider using profit sharing to build team unity.

Future of Specialty Hospitals Remains Dicey

Congress is once again targeting specialty hospitals with legislation that might hinder the facilities from competing with traditional hospitals, says Ashok Roy, MD, health policy fellow at the Heritage Foundation, a think tank based in Washington, D.C. Dr. Roy warns that Congress might revive restrictive measures that would:

  • impose a permanent ban on physician referrals of Medicare patients to new specialty hospitals in which they have an ownership interest;
  • require existing hospitals to limit physician ownership to 2 percent; and
  • prohibit the addition of new inpatient beds and ORs in existing specialty hospitals that get Medicare reimbursement.

The proposed measures follow the June 2005 expiration of a Congress-mandated 18-month moratorium on physician-investor referrals to specialty hospitals. Dr. Roy says the proposed legislation would essentially halt the building of new specialty hospitals — including those currently under construction — and forever change the management of current specialty hospitals.

"Congress should encourage competition and consumer choice in the healthcare system," says Dr. Roy. "Specialty hospitals have demonstrated that they can offer a higher-quality, lower-cost alternative to traditional hospitals. By imposing artificial statutory or regulatory restrictions on specialty hospitals, Congress is killing a catalyst for improvement and for bringing innovations to the healthcare sector."

— Daniel Cook

Read Dr. Roy's complete opinion at: www.heritage.org/research/healthcare/wm1740.cfm

Here's what I mean. We incorporate a segment of our year-end bonuses into our annual staff holiday party, an informal gathering during an afternoon in December. We give full-time employees $50 to spend on themselves; we divide employees into groups of four and give each group $100 to spend on clothes or gifts for needy families in our community. We deliver the groups' charity purchases to a local shelter that we've been working with for years. This year we donated $4,000 worth of clothing and essentials. Our staff appreciates the opportunity to help those in need.

The one caveat: employees run to the local mall during a break in the holiday party and must return later that day to showcase their purchases in front of the entire staff. We make them share because we want to ensure they use their bonus to pamper themselves instead of buying for friends or family. We've had some interesting reveals and more than a few laughs from new employees who were unaware aware they had to divulge their purchases.

Still digging
We're not done yet. Our hospital is now in the midst of its fifth construction project, one that will add 150 parking spaces in an underground garage. It's been quite a trip, filled with a fair share of growing pains. But the upside and satisfaction in starting your own facility or growing your current one makes it all worth it. Looking back over the last 15 years, I've learned a lot about myself as a manager. I wouldn't have had it any other way.

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