With the goal of improving their bottom line, an ambulatory surgery center (ASC) management group aimed to implement inventory management software across six ASCs to align case cost with industry benchmarks for improved efficiency and financial performance.
Situation
The ASC group had previously purchased SIS and ENVI to improve inventory management (IM). VMG Health assessed the current state of their Practice Management (PM) system and the IM system, ENVI. VMG Health found that both systems were poorly implemented, with key modules improperly configured, leaving the ASC leaders without access to essential inventory and cost data.
Solution
VMG Health rebuilt the item master for all six locations, including a complete overhaul of nomenclature, unit of measure, classifications, cost, and GPO pricing, all aligned with GL codes. Processes and controls were established for purchase orders, timely receiving in ENVI, and system matching. Additionally, accurate preference cards were implemented in SIS with real-time depletion tracking for precise case costing.
Success
Financial literacy is essential for both efficiency and profitability at an ASC. Understanding key indicators, such as supply costs per case, directly influences daily operations and the bottom line.
Following VMG Health’s recommendations, the group successfully gathered reliable supply cost data, implemented robust inventory controls, and evaluated case costing. They identified several opportunities to improve their supply ratio, including renegotiating location-specific vendor contracts to standardize pricing across all ASCs. Additionally, they leveraged their use of premium operating equipment and supplies to negotiate and secure a contract with competitive pricing for all their ASCs.
