The Business of Surgery Perioperative services is the key driver of a hospital’s performance. More than 68% of better performing hospitals’ revenue comes from perioperative services, and 60% of their margin is derived from the OR, according to Alecia Torrance, MBA, BS, RN, CNOR, senior vice president of clinical operations, Surgical Directions, Chicago. One…
Perhaps no other departments in a hospital work as closely together as the OR and the sterile processing department, yet friction isn’t uncommon as both areas strive to meet service demands. Although the relationship between the two is unlikely to ever be free of tension, leaders of both departments increasingly…
Problems such as frequently running out of critical items, expired inventory, and secret stockpiling in the OR have become increasingly burdensome for surgeons, nursing staff, and hospital administration across the country. Wasteful supply chain spending marginalizes patient care and drives OR expenses out of control. “When the facility’s difficulties in…
As payment models move from fee-for-service to value-based care, hospitals and healthcare systems are trying to reduce spending by 20% to 30% to maintain their budgets. Supply costs are usually the second largest expense after labor, and industry analysts predict they will take the top slot by 2020. In 2013,…
In the past, most hospitals automatically sought accreditation from the Joint Commission, but recent years have brought new players to the field, prompting hospital administrators to rethink that strategy. One relatively new player is DNV GL-Healthcare (DNV GL). Since achieving deeming authority from the Centers for Medicare & Medicaid Services…
There is no OR nurse university. Nurses can’t go away to college, pay tuition, and learn to be a perioperative nurse. “Faced with a staffing shortfall, how are we going to deal with this? How are they going to learn and acquire skills needed to work in the OR?” These…
Analytics is a buzzword in today’s healthcare world, but behind the buzz is a very real tool. If used appropriately, analytics can help OR managers achieve improvements in stubborn problems such as turnover time. But OR leaders must first understand analytics principles before applying them in their management practice. Analytics…
Relations between the OR and the sterile processing department (SPD) are not always smooth. OR staff need timely, accurate instrument trays that meet the highest standards of safety. Anything short of 100% performance leads to complaints about the SPD. But many OR staff members do not appreciate the challenges faced…
Though minimally invasive surgery (MIS) is associated with lower postoperative complication rates, little is known about the cost savings resulting from the reduced rates. Researchers led by Martin Makary, MD, professor of surgery at Johns Hopkins University School of Medicine, Baltimore, designed a study to calculate the projected cost savings…
Most OR leaders are talented nurses who have risen through the ranks. They have strong clinical expertise but usually little background in financial management. And only about a third of OR directors have a business manager on staff. Recently, senior leaders at Surgical Directions discussed the question, “What financial concepts…
