orm_mar_apr-2025 - 24

Finances
Vendor consolidation
" There is no magic in this, " Spring says,
noting that data are king, and surgeon
support is vital. " Committing volume
and spend to a smaller number of vendors "
generally improves pricing.
He adds that a hospital's spend
data allow finance personnel to see
where the money is going. " You can use
that data to determine if your organization
is purchasing many products that
do the same thing. Using that data to
consolidate to two vendors allows for a
better negotiation on pricing. "
From a vendor perspective, Medtronic's
Leo agrees. He says hospitals are
increasingly streamlining and standardizing
procurement, including working
with a smaller number of vendors,
to manage costs. Bringing some procurement
in-house can also increase
control, flexibility, and cost savings in
capital equipment purchasing. The IV
solution shortage, a result of severe
damage to Baxter Healthcare's manufacturing
plant in western North Carolina
during Hurricane Helene, prompted
some hospitals to open their own warehouses,
eliminating the need for a distributor.
Working with fewer vendors and
bringing some procurement in-house
could give hospitals greater control, flexibility,
and cost savings in their capital
equipment purchasing, Leo observes.
Communication, collaboration
Today's funding realities are pushing
hospital finance leaders to embrace
a more collaborative and less transactional
relationships with vendors,
Leo adds. " Building strategic relationships-where
you share ideas and collaborate
versus being transactional-
is more effective in the long run for
finance teams tasked with managing
capital expenditures. "
Spring elaborates on the importance
of connecting with clinicians, noting,
" Better understanding the needs and
wants of the clinical team and the impact
that new devices have on patients,
24
OR Manager | Mar/Apr 2025
patient flow, costs, outcomes and finances
is critical to establishing a best
practice for prioritizing and using capital
funds. The goal should be to get the
most out of the funds you have. Engaging
in these types of discussions and
relationships with providers is the best
way to achieve this goal. "
Holistic thinking
Finance teams and surgeons need to
think broader than simply upgrading a
piece of equipment that benefits the
OR, Spring says. They also must assess
whether it can also benefit a larger
group of patients and ultimately drive
their healthcare organization forward
financially.
The sweet spot is technology that
benefits both the patient and the hospital's
margins, Spring says. For example,
new devices that enable minimally invasive
surgery (MIS), such as laser therapy
for brain tumors, provide a win-win
by allowing more patients to be seen.
These MIS approaches can reduce recovery
time in the postanesthesia care
unit and recovery time as an inpatient, "
he says. " In this way, an expensive device
for the OR might actually be good
for the institution. " ORM
-Anne Wainscott-Sargent is a freelance
technology and science journalist with a
diverse healthcare writing background,
covering topics ranging from infection
control to biopharma/life sciences.
References
Flicek G. Hospital Finance: Capital Expenditure
Costs Are Up Nearly 2x.
Ascendient Healthcare Advisors. Accessed
January 2025.
Rodeck D. Medical Equipment Leasing:
Should You Lease or Buy? National
Funding. March 19, 2020.
Southwick R. How Donald Trump's
return affects hospitals: Medicaid,
the Affordable Care Act and tariffs.
Chief Healthcare Executive. January
20, 2025.
EDITORIAL
ADVISORY BOARD
* Heather David, MSN, CRNP, AGACNP-BC, CSSYB,
Patient Safety Analyst III, ECRI, Plymouth Meeting,
PA
* Brian S. Dawson, MSN, RN, CNOR, CSSM, System
VP, Perioperative Services, Common Spirit Health,
Denver, CO
* Claire Everson, RN, CNOR, CCAP, Clinical Educator
and Consultant, Bloomfield Hills, MI
* Diane Fecteau, MSA, RN, CASC, NE-BC, Executive
Director, Maine Medical Center Scarborough Surgery
Center, Scarborough, ME
*
Ayumi Fielden, MSN, RN, CCRN-K, CPAN,
Professional Practice Leader, Houston Methodist
Hospital, Houston, TX
* Cynthia Hess, MSN, RN, FNP-C, RT(R)(CT)(ARRT),
Director of Nursing, Northeast Missouri Ambulatory
Surgery Center, Hannibal, MO
* Tracy Hoeft-Hoffman, MBA, MSN, RN, CASC,
Administrator, Heartland Surgery Center, Kearney, NE
* Beverly Kirchner, BSN, RN, CNOR, CASC, Chief Compliance
Officer, SurgeryDirect, Highland Village, TX
* Natasha Luster, MSN, RN, CNOR, Director of
Surgical and Cardiology Services, Wilson Health,
Sidney, OH
*
Casey Orth-Nebitt, MSN, RN, CNOR, Director of
Surgery, Buena Vista Regional Medical Center,
Storm Lake, IA
* Kaye Reiter, MSN, RN, NE-BC, Perioperative
Executive, Denver, CO
* John Rosing, MHA, FACHE, Executive Vice
President and Principal, Patton Healthcare
Consulting, Naperville, IL
* Shawn A. Sefton, MBA, BSN, RN, President, Sefton
Healthcare Advisors, Boston, MA
* Mark R. Staun, Esq., Hartley Law Group PLLC,
Charleston, WV
* Rosemary Welde, MBA, BSN, RN, BCC, Healthcare
Consultant and Coach, Belmont, CA
* Monica Young, MBA, RN, DNP, FACHE, CNOR,
CASC, NEA-BC, VP, Perioperative Services, Thomas
Jefferson University Hospital, Philadelphia, PA
If you would like to get more involved with
OR Manager, please contact Tarsilla Moura,
senior editor, at tmoura@accessintel.com.
We would love to hear from you!
www.ormanager.com
https://www.ascendient.com/higher-thinking/hospital-finance-capital-expenditure-costs-are-up-nearly-2x https://www.nationalfunding.com/blog/medical-equipment-leasing/ https://www.chiefhealthcareexecutive.com/view/how-donald-trump-s-return-affects-hospitals-medicaid-the-affordable-care-act-and-tariffs http://www.ormanager.com
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