Outpatient Surgery Magazine - Subscribers

The Case for Concurrent Cases - Outpatient Surgery Magazine - November 2018

Outpatient Surgery Magazine, providing current information on Surgical Services, Surgical Facility Administration, Outpatient Surgery News and Trends, OR Excellence and more.

Issue link: http://outpatientsurgery.uberflip.com/i/1051280

Contents of this Issue

Navigation

Page 22 of 136

N O V E M B E R 2 0 1 8 • O U T PA T I E N T S U R G E R Y. N E T • 2 3 The ROI calculation considers depreciation (the reduction in the value of an asset with time passage due to wear and tear) and estimates the life of the equipment at 5 years. You'd need at least 32 cases per year at the contribution margin of $950 per case. You calculate the contribution margin by taking the average revenue per case ($2,500) and subtracting the supplies, labor and contract labor per case ($1,550). We calculated the service con- tract and initial startup costs (training and procurement) into the expenses. Based on our assumptions, this looks like an obvious pur- chase that will provide substantial profit. If your facility is concerned about cash flow, you can consider financ- ing or leasing. You can also rent some equipment on a per-case basis. This can be a good option if you have low confidence in your utiliza- tion, as it eliminates the possibility of the equipment sitting in your stor- age area collecting dust. Be sure you're not running afoul of regulatory requirements with any per-case agreement. When your facility invests in a new piece of equipment, you need to know what kind of financial return the investment will yield. It's criti- cal to calculate your net financial gains or losses and to consider all of the resources invested and all of the amounts gained. This will miti- gate your financial risk as you continue to grow your business and improve the quality of care for your patients. OSM Ms. Courtay (rena.courtay@gmail.com) is the president of Solutions for Outpatient Surgery, a consulting firm specializing in ambulatory and office- based surgery. The big decision centers around your facility's ability to earn its money back after purchasing the equipment and then to go on to reap a profit.

Articles in this issue

Links on this page

Archives of this issue

view archives of Outpatient Surgery Magazine - Subscribers - The Case for Concurrent Cases - Outpatient Surgery Magazine - November 2018