AS I SEE IT


current staffing levels and skill sets, can the demands of the newly proposed service line be met with existing staff or will you need to plan for additional staffing and hours? This question can be determined in part by the expected case volume the physician proposes to bring to the facility, as well as an as- sessment of the staff’s current skill sets. In cases where current employees do not have the required knowledge or experience base, calculate if the cost of additional training will influence the forecast projections. It also is important to consider a


forecast’s effect on your ASC’s busi- ness office staff. When volume in- creases, so will the number of cases that your ASC will need to bill and col- lect. If there is a significant increase in cases, more billing staff will need to be hired to handle the increasing volume. ASCs that do not have the assistance of a management company should speak with their business office man- ager to assess current contracts and reimbursements, discuss clinical staff- ing with their director of nursing and calculate equipment and supply costs with their materials manager. Consideration of the bottom line


will inevitably prompt a question about return on investment (ROI). While this calculation is often the gold standard in determining if a new business endeavor is worthwhile, it also can be argued that any revenue that could add to the bottom line can be beneficial. For instance, if a new service line could provide a 10 per- cent return for the facility, would that make it financially beneficial? For others, breaking even after the first year could make the endeavor worth- while. Ultimately, all financial deci- sions are facility-specific, depend on current facility returns and should be weighed against other opportunities. Keep in mind that even the most


carefully planned forecasts can be de- railed by ancillary reasons that appear


ASC FOCUS JULY 2013 9


Key Players in the Forecasting Process


■


Administrator or business office manager—current contracts and reimbursements, business office staffing


■ ■ ■


Director of nursing—clinical staffing


Materials manager—equipment costs and procurement


Administrator or sales—verify physician case volumes


Steps to Successful Forecasting 1. Find a service line extension that compliments or adds to your ex- isting services. Assess the com- munity’s need for a particular specialty.


2. Ensure payer contracts address the proposed procedures. When it is time to renegotiate contracts, work to carve out specific codes per- formed on a frequent basis.


3. Consider doing a risk assessment that determines if the existing physician(s) and clinical staff are adequate and safe.


to be more emotional than economic in nature, but the exercise of forecast- ing remains one of the most conclu- sive and economically sound ways to determine if adding a new service line extension is right for the patients, staff and physicians in your ASC.


4. Assess all supply costs, including equipment, anesthesia and drugs.


5. Do not focus solely on revenue. Calculate if both the ROI and mar- gin make sense for your facility.


Kalin Mieras is the director—financial planning and analysis of Nueterra, www.nueterra.com.


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