Physicians Practice - January 2008 - (Page 68)

CME MANAGEMENT create their own purchasing co-op,” Tinsley points out. “Go out to vendors and say, ‘We are 15 to 20 docs. Do you want our business, and what kind of price can you give us?’” If you are in an independent physician association (IPA), it should already have deals like this in place. Bill Hook, vice president of healthcare logistics at UPS, points to another purchasing trend: “People are building direct relationships with suppliers instead of using a middleman.” For example, an oncology practice that orders many very expensive drugs made by a single pharmaceutical company will order directly from that company. Often, the collaboration yields lower costs and better inventory management, as the supplier might keep track of how frequently products are ordered and send them on a routine basis. That helps the supplier to control its production, and the practice to manage its costs. UPS is even seeing some pharmaceutical companies send drug samples using the delivery company’s services instead of having expensive sales reps deliver them. The courier gets a signature from the physician conﬁrming delivery, so the pharmaceutical company and the practice win. The practice gets the samples, and the pharmaceutical company saves its sales reps for more quality interactions with physicians. Call companies that give you the most samples and see what you can work out. RAMP UP RECEIVING BEST PRACTICES FOR SAVING MONEY Think your practice runs about as lean as it can? Think again. In many practices “we’ve become complacent and think we’ve done everything we can” to reduce costs, says Michael O’Connell, vice president of operations and physician services at Huron Hospital, part of the Cleveland Clinic. Look a little harder, and it’s still possible to ﬁnd waste. O’Connell has saved his organization several hundred thousand dollars in operating costs with seemingly simple changes. For example: • Patients got clear plastic bags for their belongings, cutting theft. • Multifunction devices, with printers, faxes, and scanners all in one, are replacing 186 stand-alone printers. “I’m embarrassed to tell you how much we’re getting rid of,” says O’Connell. O’Connell’s keys to success: • Have a mission for cost savings. • The clinic stopped using trifold paper towels and dispensers in the bathrooms. You know how trifolds work: You pull one towel, get a handful, and leave the rest sitting on the counter where no else will use them. That’s waste in action. clinic picking up wasted items — say a 12-ounce bottle of some supply thrown away with four ounces left. The practice could order an eight-ounce bottle instead. Having the physician walk into a staff meeting with a basket full of discarded objects “spoke a thousand words,” says O’Connell. detergent in the laundry room, reminded staff to use the proper amount of soap in each load, and locked up the soap when it wasn’t in use (it tended to get carried home with employees). “Too often people do things with a quick ﬁx mentality,” O’Connell says. Instead, set concrete ﬁnancial and strategic goals as well as short-term and long-term objectives. ish. “My children love Kraft Macaroni & Cheese. That’s all they eat. I went to the market and bought the generic mac and cheese and my 4-year-old didn’t eat it. That was not a savings,” O’Connell explains. Same thing applies in medical practice. Buying cheaper paper exam table covers isn’t worth it if the ﬂimsy paper rips requiring staff to use twice as much. for change. This effort needs to be a blame-free exercise. O’Connell also gave a $25 gift certiﬁcate to any staffer who suggested an idea that was implemented. • Don’t be penny-wise and pound-fool- • One physician walked around the • Enthusiastically consider every idea Streamlining the receiving process can be another big beneﬁt for practices, especially in larger settings. A study published in Health Forum Journal in 2000 indicated that approximately 35 percent to 40 percent of supply-related costs are devoted to handling and moving materials. Simple spreadsheets help, but hospitals and other large organizations rely increasingly on electronic systems to help packages get where they are going fast. Generally, the systems rely on barcode scanners and signature pads to track internally when packages are received and delivered. Check with UPS, Pitney Bowes, and Barcoding Inc., among others, to see what might work for you. In smaller practices, just as one person should order supplies, one person should be in charge of unpacking boxes. “Most practices are extremely unorganized on this, and whoever has a moment unpacks,” says Denning. You need someone who will pay attention and restock items neatly and promptly. It shouldn’t be an afterthought. Unpacking boxes, putting things in order on shelves, ordering swabs: Although doing these things well won’t make a failing practice into a lucrative one, they will save a little, smooth cash ﬂow, and make practicing a good bit easier. • • The clinic discontinued name-brand Pamela Moore, PhD, is senior editor, practice management, for Physicians Practice. She can be reached at pmoore@physicianspractice.com. 68 | PHYSICIANS PRACTICE | JANUARY 2008 WWW.PHYSICIANSPRACTICE.COM http://WWW.PHYSICIANSPRACTICE.COM

Table of Contents Feed for the Digital Edition of Physicians Practice - January 2008

Physicians Practice - January 2008 Contents The Bigger Picture: Fixing Medicaid Letters Physicians Practice Pearls: You Can Teach an Old Dog New Tricks Noteworthy Cover Story: Fee Schedule Survey: 2007 Results Adding Ancillaries: Bucking the Practice Ask the Experts Idealab: 'How I Got Over My EMR Excuses' Technology: Don't Be Denied The Tech Doctor: Blessing or Curse? The Administrator's Desk: Learning From the Best Coding Career: To Partner, or Not? Management: Controlling Your Inventory Human Resources: How to Fire an Enployee Finance: Beyond Reimbursment - How to Fix Your Mix Classifieds Advertiser Index

Physicians Practice - January 2008

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