Implementation of a shared-savings program for surgical supplies decreases inventory cost

Surgery. 2015 Oct;158(4):996-1000; discussion 1000-2. doi: 10.1016/j.surg.2015.06.010. Epub 2015 Jul 21.

Abstract

Background: Management of operating room inventory has substantial cost-saving opportunities if surgeons agree to standardize supplies used to perform procedures; however, there is no incentive for surgeons to participate in these decisions, because the cost-savings are realized only by the hospital, not the practitioner. In an attempt to engage surgeons with the management of the operating room supply chain, a shared-savings programs was instituted that returned 50% of money saved to the surgery divisions.

Methods: Opportunities for savings in the use of biologic mesh, cranial plating systems, and neurostimulators was identified. Each item was assigned a physician champion responsible for ensuring that there was clinical equipoise between the products being used. Any cost-savings realized during the fiscal year were shared 50-50 between the hospital and the surgery divisions.

Results: The total cost-savings was $893,865 with $446,932 being shared across 15 surgery divisions. Standardization of cranial plating systems ($374,805) generated the greatest amounts of savings followed by neurostimulators ($278,404) and biologic mesh ($240,655).

Conclusion: Aligning hospital and surgeon incentives led to dramatic cost-savings and standardization of the operative inventory used. Quality of care is not compromised by this approach, and no conflicts of interest are created.

Publication types

  • Evaluation Study

MeSH terms

  • Cost Savings*
  • Hospital Costs*
  • Humans
  • Ohio
  • Operating Rooms / economics*
  • Operating Rooms / organization & administration
  • Physician Incentive Plans / economics*
  • Physician Incentive Plans / organization & administration
  • Program Development
  • Program Evaluation
  • Surgeons / economics*
  • Surgeons / organization & administration
  • Surgical Instruments / economics*