Hospital/ASC Return On Investment (ROI)
Waste reduction
Quick minimal estimate: Number of surgical cases per year x average supply cost per case x 12-14% = savings per year (average $872,700)*
*This percentage will vary on facility procedure mix, physician program utilization, and OR staff cooperation.
Peri-operative efficiencies
Quick minimal estimate: Number of surgery cases x $44 per case Average ($189,200)
Additional case net revenue: 1-2 cases per day x 260 days x $1217 - $3133 = $316,400 - $1,629,160
Charge capture
Improvement projection of 10 Percent
Pilot Facility ROI
Corrections
DocOpC implementation corrected 38% of the items on the hospital pick sheets
Charge Capture
Improvement between 15%-33%
door swings
Eliminated on crucial cases such as joint arthroplasty
Estimated ROI
Between $150 and $200 per case
Reception
Enthusiastic staff adoption of platform
Observations on Surgical Supply Waste
“Average cost of unused supplies was $953 per procedure.”
-Journal of Neurosurgery
“Medical Supplies that are in perfect, usable condition are often put out into the trash and it adds up to an estimated $765 billion per year”
-National Academy of Medicine
“Unused surgical supplies add up to more than 2,000 lbs. of waste each year in the U.S.”
-American College of Surgeons
“Biggest driver of over-budget inventory spend are medical-surgical supplies –which can account for 30-40% of a hospital’s supply expenses.”
-Becker Hospital Review
“A 2005 Study found that OR charges averaged $62/minute; excluding equipment, surgeon and anesthesia fees.”
-Journal of Clinical Anesthesia
ROI Analysis
Estimates based on a combination of waste reduction, improved perioperative efficiencies, and improved charge capture.
Average ROI
Based on an average 4300 surgical cases per year per facility at approximately $200 per case there is a potential total savings of $872,000/year per facility.
ROI THROUGH Efficiency
If we add only 10% efficiency through our platform to the perioperative practice we can save an estimated $44 per case for another $190,000
ROI THROUGH Scheduling
We estimate that with efficiencies in scheduling in the operating room we can add another 1-2 cases per day x which adds another $316,400 - $1,629,160 per year depending on case mix
ROI through Charge Capture
At the pilot facility, we changed an average of 30-40% of items on pick sheets which resulted in improved charge capture. Real time editing of pick sheets during charge capture from within the ORs further keeps the pick sheets up to date and further improves charge capture accuracy & efficiency. We conservatively estimate an improvement in charge capture of 10% at other facilities.
Market Statistics
48 million surgeries performed in 11,000 facilities = average 4300 surgeries per year. 4300 x$200 = estimated $872,727 per year savings. Even if we only captured 25% of these savings we would still save the average facility $215,000
OR efficiencies: total staff time per case is approximately 10.4-16.2 hours in ASC which is generally and widely accepted as more efficient than a hospital. Nurse-$35.58 per hour, tech - $23.32: admin $26.24. Total nurse time per case is 7; average tech time per case is 3 and average admin per case is 4.5; for a total of 14.5 hours per case. This translates into $438 wage cost per case. For the average facility If we assume only a 10 percent improvement in efficiency, this adds another $44 per case or $189,200 annually.
Surgical cases per operating room day average about 2.1-3.8. So for 48,000,000 cases across 11,000 hospitals this is 4300 cases per year or 16 cases per day. This means the average facility runs between 4.2 and 7.6 rooms per day. We can assume the operating room space is the “bottleneck” for the addition of additional cases. With the efficiency calculations, we estimate an additional 1-2 cases per day per facility at an average net revenue between $1217-3133 per case. This represents an improvement in revenue of low 316,420 – 814,580. - (Operating room time average 40-60 minutes per case plus 6-10 minutes turnover)
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