4 Best Practices to Reduce Costs in Hospital-Owned ASCs

Here are four best practices for hospitals to help reduce costs in their ASCs, according to Joseph W. (Woody) Hubbard, vice president of ambulatory care for North Carolina-based Novant Health.

1. Don't assume your hospital is getting the best price on supplies for its surgery centers. Just because your hospital has volume contracts in place, don't assume that this is beneficial to the ASC. Hospitals are finding that surgery center-focused GPOs can offer less expensive items, some as much as 20 percent lower.

2. Borrow equipment from the hospital. Use the resources of the hospital when it comes to needing instruments, equipment, etc. Don't buy new when you can borrow or buy excess at book value.

3. Use the power of the physician. Involve physicians to negotiate capital equipment purchases, especially when the physicians are aligned via joint venture or management agreement.

4. Introduce ASC metrics. We removed $1.5 million in construction and equipment costs in a newly planned ASC by introducing metrics common to independently-owned ASCs. Hospitals tend to build their ASCs too large and with equipment specs better suited for inpatient operating rooms and PACU.

Learn more about Novant Health.

Read more guidance to reduce costs in ASCs:

- 8 Things an ASC Can Do to Improve Operations and Drive Stronger Results

Tips for Analyzing Costs at Your ASC

5 Ways to Reduce Costs and Bring New Business to a Surgery Center

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