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Are your cases profitable?

Dec 1, 2014 | Author: Tom Scott, CFO

When one of your physician investors ask if that case is profitable, do you know the answer?  There are several critical reasons for case costing:  contract negotiations, profitability analysis and developing approved procedure list.  But this short blog is going to deal with using case costing to keep your physician investor engaged with the facility.  

If you have a surgeon that ask that question, the good news is that you have an engaged physician.  Use this opportunity to engage with you physician and it just may lead to increased profitability.  Posting case costing data for your physician investors to review can lead to some great discussions.  Get your surgeons talking about why the same case performed by different surgeons produces a different profit margin.   The outcome of those discussion may very well be a more cost effective supply being used by all surgeons. 

The data will also highlight any non-profitable cases for your center.   Discuss with your physician investors these cases to see if they should be on your approved procedure list.  The discussion may also lead to new ways of performing the procedure or the need to re-negotiate with a payer.  With either discussion, cost data is vital.

So use case costing data to engage your physicians and show them that you have an understanding of the operations of your surgery center.