Why a Med-Surg Prime Vendor Makes Sense for Surgery Centers

While ambulatory surgery centers (ASCs) serve an important role as a pressure valve in the healthcare system—relieving long wait times at strapped hospital systems, or providing cost savings for patients—that doesn’t mean they don’t face their own pressures. According to a recent article in Becker’s ASC Review, surgery centers are facing a “cost crisis,” as costs of healthcare are rising, and a variety of policy concerns impact their operations.

Multitasking ASCs struggle with inventory management

ASCs typically run lean operations, particularly when they start out. Often founded by a small group of surgeons, they don’t employ a large staff. And as the case volume grows, they can experience growing pains familiar to many small businesses, where they can only bring on more staff slowly. That means ASCs can be forced to do more with less as employees multitask.

And when it’s all hands on deck, there often isn’t a dedicated person for purchasing or receiving at an ASC. And the larger the facility, the greater the need arises to ensure they not only have the correct products on hand, but they have the right information to get the products quickly and efficiently, and at the best cost.

A prime vendor isn’t just a vendor

That’s where a prime vendor for medical-surgical supplies can be advantageous. It’s not just about who is going to give the best price (which a prime vendor can often do), but who can consistently provide the best level of customer service, and who has the deepest knowledge of the industry if you have an urgent question.

The right prime vendor forms a partnership with a surgery center, working to provide not only the lowest possible price on products, but a high level of customer service with a knowledgeable sales force. A prime vendor with a focus on surgery centers will have an intimate knowledge of the space, and be able to provide solutions.

That understanding could come in the form of knowing what contracting issues a surgery center may be dealing with, or how ASCs are dealing with reimbursement cuts, new implant challenges, anesthesia costs, etc. A prime vendor who works every day with surgery centers will be hearing the same pain points across their customer base almost building a problem-solving network.

A surgery center may not be able to call another ASC and talk about the problems they’re facing, because that other center may see them as a competitor. But a prime vendor can see how other centers are solving the problems and help pick solutions that are working across the industry.

Bringing value to surgery centers

Let’s imagine the opening of a new spine center. As the surgeons plan their operation, instead of looking at a catalog of thousands of items, a prime vendor can highlight which items they’re seeing being used day-to-day at other spine centers, reducing the amount of time they have to spend on identifying the right products.

ASCs also may not have the deepest sets of data, or the expertise to interpret it, to determine the optimal way to manage inventory. Having multiple vendors for a variety of products may not give them a clear picture of when they need to replenish.

But a prime vendor like Medline can look at their orders and quickly assess your PAR levels, helping you maintain and adjust them when needed. And because surgery centers are often dealing with limited storage space, having that level of partnership can ensure they’re utilizing their space most effectively.

Key takeaways

Surgery centers are experiencing constant cost pressure, including everything from lower reimbursement rates compared to hospital outpatient departments, and rising healthcare costs. While ASCs need to be cost-conscious, seeking lower prices by ordering from multiple vendors may not yield optimal results. Having a prime vendor can have a number of benefits:

1. Efficiency. Because ASCs often work with a smaller staff who are focused on patient care, they may not have someone with experience in purchasing, or who even has time to manage vendor relationships, receive packages, etc. A prime vendor can help carry much of the logistical burden, so staff can focus on clinical outcomes.
2. Expertise. A medical-surgical supply prime vendor like Medline has numerous surgery center customers across the country, and has line of sight into the national and regional challenges facing other ASCs. While it may be difficult for a center to know how competitors are addressing challenges, a team like Medline’s sales force can identify solutions.
3. Data. Managing multiple vendors means having data streaming in from multiple sources. With a prime vendor, one source of data can provide a holistic picture of how a surgery center is using their products, and how they can optimize the flow of supplies through their facility.

It all goes back to providing better patient care at a strong value. If a prime vendor can take care of delivery and logistics in a way that reduces headaches for the surgery center, the surgeons can focus more on providing the best care to their patients.