Hospital saves millions with lots of small changes
Prices in surgery center compared
Stanford (CA) Hospital & Clinics has saved more than $14 million by evaluating 20,000 items bought from 6,000 vendors and dozens of standard operating procedures, and much of that savings has come from the hospital's ambulatory surgery facilities.
The changes were led by the OR Value Analysis Team, which represents the main OR, the Ambulatory Surgery Center (ASC), Stanford Medicine Outpatient Center, and Sterile Processing.
The hospital used an outside vendor, which they prefer not to name, to run a report of 12-month use of ASC products and benchmark against other facilities. "Where we would see hospitals paying a better price, we would resurrect [the contract] and renegotiate a better contract," says Stephanie Chamberlain, value analysis coordinator for the hospital.
The team targeted price reduction on current probe covers, tracheal blades, burs, implant supplies, and others. It saved $540,794 on this one step alone.
Other changes included product conversion and vendor changes, says Su Tsao, MPA, manager of value analysis, materials management, at the hospital. "A good example is that you don't have to use Bausch & Lomb [intraocular lens]," Tsao says "You can use AMO, American Medical Optics." In such cases, work with your clinical staff by explaining that there is a comparable IOL at what price and what specification, she says.
Vendors were changed for insufflation tubing, hemovac supplies, PVC drains, equipment drapes and wound closure devices. The cost savings totaled $56,303.
Simply by reduced inventory by deleting stock not being used in the ASC and the main OR, the hospital saved $229,475. The team also reviewed items in custom pack for slow-moving items. The goal was to ensure only appropriate items are in each pack. The result was lower waste and a cost savings of $285,803.
Some products that had been used for years without question, such as exam gloves, are being subjected to rigorous value analysis. This process involves using standardized criteria and field testing, as well as direct feedback from staff using the product. The hospital asked eight vendors to make proposals and provide gloves for testing. Once a glove was selected, it was implemented for use across the hospital. "We saved significant dollars," Tsao says.
Currently, the hospital has assigned one person in each department, including the ASC, to check for unused phone lines and pagers. Thus far, the savings across the hospital is $100,000, and the process is ongoing.
Also, the ASC staff and others are automatically taken to the hospital's intranet site when they turn on their computers. The intranet has regular reminders urging staff to make small changes, such as turning off their computers and lights before they go home, that can save as much as $100,000 annually.
The ASC and other departments have been offered the opportunity to convert from paper paychecks to electronic direct deposit. All new employees automatically receive electronic checks unless they request paper.
The changes have added up. "This is not a one-time project," said Jerry Maki, vice president for clinical services and head of the Value Analysis Steering Committee. "Our value analysis approach is the new way the hospital will continue to secure appropriate products and services at the best price."
Stanford (CA) Hospital & Clinics has saved more than $14 million by evaluating 20,000 items bought from 6,000 vendors and dozens of standard operating procedures, and much of that savings has come from the hospital's ambulatory surgery facilities.You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
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