Colorado Ambulatory Surgery Center Association’s Annual Spring Conference: Our Patients Come First

Effective Material Management

Strategies During Times of

Change

Where to look What to look for

• Salary and benefits

• Fixed assets

• Supplies purchases

• Capital purchases

• Service agreements

Supply Purchases

• You are the hunted – not the hunter

• “The seller has a thousand eyes, the buyer has two”

Decision making process

• Keep it professional

– Emotional decisions tend to be in suppliers

favor

– “Friends” are earning money too

• Do not settle on the brand and type until

you have all the information

– If you have decided, do not reveal that

– Play poker – make sure docs and staff know

Standardization is KING

• Start with low hanging fruit

• Consolidate suppliers

• Involve nurses and surgeons

• “Negotiate” with suppliers – it’s not

retail

– Be prepared to give a little to get more

Complacency is unacceptable• Audit invoice periodically

• Re-bid core items every 3-5 years

• Seek new sources of information and learn

• Ask for help– Local peers– Other sales reps– Corporate management– GPO

Capital Purchases

• A few extra points of discount adds up fast

• Gather timely and appropriate data

• Do not over buy the needs of the business

Replacing existing equipment• Do you know all that is available?• Do you really need all the bells and

whistles?• How does it interface with other

equipment• Do current mechanicals match the

needs– Electric, water supply, drainage,

structural

Refurbished versus New

• Know the refurbished company

well

• Have written description of what

“refurbished” means to that

company

• Know the full extent of warranty

New Equipment

• Freight must be FOB destination• Are trade-in’s offered

– Can you re-sell for more cash– What is done with the trade-in’s

• Know what the going discounts are– Regionally and nationally

• Buy what is needed, not what is being pushed

Service Agreements

• A huge cost to all providers

• There are organizations that can

encompass multiple pieces of

equipment

• Capital equipment– Extended warranties are the manufacturer’s

gold mine – a major profit center

Freight

• In bound freight is a fright!• All distributors should include this

in the price• Manufacturer’s have another profit

center with freight, especially when shipping FedEx or UPS

• The cost is yours, so take control

Technology Solutions

• So many to choose from

• Billing/coding – daily changes

• Recovery of past due

• Item master and charge master

• Cost per procedure and/or key procedure

indicators

Thank You

Mark D. EgglestonV.P.National Accounts and Non-Acute Care

Amerinetmark.eggleston@amerinet-gpo.com

612-325-5983