Addressing the Rising Costs of Surgery Centers
It’s time to address the primary topic all ASCs are concerned with right now—surgery center cost savings.
Earlier this month, the proposal ASCs had been dreading became reality. The Centers for Medicare and Medicaid Services (CMS) finalized a physician pay cut that will reduce the physician pay conversion factor by 4.48% to $33.06 in 2023—a decline of $1.55.
The pay cut comes on the heels of an ASCA survey confirming nearly 100% of respondents have experienced price increases.
In addition to 97% reporting an increase in drug prices, 77% equate price increases to supply chain issues. The charts below reveal what 139 survey respondents had to say:
How much is your ASC paying overall for medical supplies and equipment this year?
What is the top factor contributing to the increase in overall prices for medical supplies, equipment and drugs at your ASC this year?
If you add the above figures to a 4-year inflation apex of 8.5%, a labor shortage, and tough competition over securing supplies like PPE, and it’s easy to understand why many ASCs are struggling with their bottom line and searching for ways to offset rising costs.
How to Implement a Surgery Center Cost Savings Plan
One proven way to save money is to get a handle on the supply chain. With a cloud-based Supply Chain Visibility Platform like the one offered by VPL, ASCs get the data-focused and technology-enabled solutions they need to build smarter, more resilient supply chains while significantly reducing costs.
By focusing solely on healthcare, VPL’s platform enables ASCs to anticipate and plan for their specific types of supply chain disruptions. And we’re the only company that looks at the three most critical links in the supply chain:
1. Freight Management
By allowing ASCs to choose their carriers and rates, we eliminate the unseen markups that can add precious extra dollars to every shipment.
2. Data & Analytics
By guaranteeing transparency into all data, we help ASCs uncover inefficiencies and make cost-saving decisions.
When ASCs can view end-to-end product movement from supplier to point of patient care, they can prepare for backorders and avoid costly procedure cancellations.
Partner With a Trustworthy Company
In this economy, greater resilience means guaranteed savings. VPL is the only supply chain partner that can offer both, and can prove it. Schedule a demo to see how we generate surgery center cost savings and solve for other ASC supply chain issues.
Not ready to speak to someone quite yet? Watch this 30-minute presentation for a sneak peak into what partnership with VPL would look like.