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PERSPECTIVES
Operating Room Insourcing Versus Outsourcing
Post COVID-19
he COVID-19 pandemic created unprecedented disruption across the special advertising content
T healthcare landscape and beyond. Many physician practices have
stopped seeing patients in-person while hospitals face growing patient
volumes in ICUs and a shortage of personal protective equipment (PPE) and
ventilators. Elective surgeries have been postponed or cancelled, leaving
many hospitals financially challenged as a key source of income has been
frozen. As states and the federal government take different approaches to
reopening the economy, health systems face more challenges ahead. Given
the extraordinary level of uncertainty, health systems are re-evaluating
operations and developing new strategies to ensure economic sustainability.
Current provider trends include:
1) Freezing capital expenditures and reducing expenses
2) Preparing for a surge in elective surgery once lockdowns are lifted
3) Planning for an accelerated shift of surgical volume to ASCs

Operating rooms account for 40% of total hospital expenses and a
disproportionately high portion of hospital revenue of 70%. The dramatic
decline in surgical volume during the pandemic has exacerbated challenges “Reducing OR costs
in managing OR staff and equipment. Healthcare providers have the option
of buying, leasing or having a third party manage their equipment and clearly has the potential
need to evaluate these options closely with the recent market volatility.
With capital spending frozen at many health systems, buying equipment to substantially impact our
is no longer an option. Leasing and third party management of equipment
and repairs is more affordable for cash-strapped hospitals. As revenue overall healthcare spend.”
fluctuates, healthcare providers need to re-evaluate spending and ensure
that cost structure is aligned with their revenue. In terms of staffing,
a variable structure would allow health systems to serve fluctuating
surgical volume with greater flexibility. A third party equipment and LEARN MORE 8
repairs management service can provide clarity on total equipment costs,
ModernHealthcare.com/Perspectives_SurgicalSolutions
facilitating asset optimization, improved long-term forecast visibility,
flexible staffing, greater cost accountability and an increased OR utilization.

Download our whitepaper on ModernHealthcare.com to gain best practices
for managing OR costs as your health system emerges from COVID-19.