The financial and operational health of the surgical department is extremely important to the hospital. It used to provide 20% of a hospital’s overall profit, but as reimbursements have dropped, roughly 10% to 15% is expected. This is still a significant portion of the hospital’s total revenue, in fact it is typically the biggest revenue producing department for a hospital.
This makes it crucial to consider the overall condition of the OR’s financial and operational efficiency, and its resulting profitability. It is necessary to consistently reach new levels of sophistication in terms of the ability to measure, monitor, and adjust processes. Hospital staff, surgeons and their office staff, outside vendors, and the anesthesia group have to work together like parts of a mechanical watch to make the patient experience the best it can be. It must also be done in a financially sustainable way, which also results in higher morale for all parties involved.
The anesthesia department plays a pivotal role in both financial and operational aspects of the OR, and must be a very active participant in the efforts to align all invested parties. Transparency and collaboration are key aspects of the relationship. All coverage needs and costs must be analyzed. Each expense category must be broken down and reviewed so that the hospital and anesthesia group can reach mutually acceptable terms.
For example, when negotiating contracted coverage and stipend levels, the largest component is provider salaries. When evaluating this area, careful consideration must be given to what the market bears. Paying too much could be wasteful to the hospital, but paying too low, may result in high turnover and less desirable providers that have no other options.
Finally, trustworthiness is one of the most crucial aspects when choosing an anesthesia group. This allows for robust decisions in regard to coverage, costs, and the ability to scale up or down during times of growth or contraction.
Every project that we engage in is unique and deserves special focus and attention to detail. Our philosophy is centered on proven principles of results-based work. Process is very important, but the main goal of any engagement is to produce meaningful results.