--- title: Find Sanity by Optimizing your ASC’s Inventory Management description: How ASCs can guide their own search for the best EMR software for their business. image: https://blog.simplifyasc.com/hubfs/archive-1850170_1280-1.jpeg --- [Back to Blog](https://blog.simplifyasc.com/) http://www.simplifyasc.com Simplify ASC ![](https://simplifyasc.com/wp-content/themes/simplify/img/favicon/favicon-32x32.png) Mar 27, 2019 6:04:22 PM # Find Sanity by Optimizing your ASC’s Inventory Management ![Find Sanity by Optimizing your ASC’s Inventory Management](https://blog.simplifyasc.com/hubfs/archive-1850170_1280-1.jpeg) Instructional - [Practice Management Systems](https://blog.simplifyasc.com/tag/practice-management-systems), [ASC Technology](https://blog.simplifyasc.com/tag/asc-technology), [ASC Regulations](https://blog.simplifyasc.com/tag/asc-regulations), [ASC Operations](https://blog.simplifyasc.com/tag/asc-operations) - BY: [Norman Joseph](https://blog.simplifyasc.com/author/norman-joseph) - Mar 18, 2019 --- The average ASC racks up [$1.5 million](https://www.beckersasc.com/benchmarking/56-asc-benchmarks-to-know-on-regional-operating-expenses-per-case.html) annually in operating expenses. Of that, $464,000 is spent on drugs and medical supplies. With ASCs under spending limits to maintain their Medicaid certification, not to mention their own profitability goals, the pressure’s on to control supply costs. Here’s a look at how ASC leadership can optimize inventory management practices. ## The Flattened Hierarchy of an ASC is your Frenemy ASCs don’t have the multi-layered purchase processes of a hospital, which lightens the red tape burden. But given the flattened hierarchy of an ASC, everyone is on alert to identify savings in time and resources. Inventory automation is one of those cost savings measures that ASCs are beginning to embrace. While most centers still rely on [manual inventory counts](https://www.beckersasc.com/asc-turnarounds-ideas-to-improve-performance/3-ways-to-limit-financial-risk-at-ascs.html) for some parts of their supply chain, only [17%](https://www.beckersasc.com/asc-turnarounds-ideas-to-improve-performance/3-ways-to-limit-financial-risk-at-ascs.html) leverage technology for perpetual, real-time tracking. Whether some or all of the process is automated, ASCs should take steps to maximize its impact, and keep the data current. It doesn’t do any good to have outdated information, whether it’s online or not. As most ASCs are [physician-owned](https://www.beckersasc.com/benchmarking/6-statistics-on-asc-ownership.html?platform=hootsuite), it’s sometimes easier to cater to individual physician interest and order exactly what works for each doctor, but that approach can create unnecessary and costly duplication. Inventory management systems provide the necessary visibility into supply costs to make the right comparisons, and to allow for variations among surgeons. In addition to tracking every single item, inventory management software should also generate the necessary analytics, like tier optimization and contract compliance purchasing, or batch expiration dates.  [Healthcare Purchasing News](https://www.hpnonline.com/tips-tools-managing-ambulatoryoutpatient-facility-supply-chain/)has more on inventory management reporting for ASCs. As the number and type of supplies increases, skillful inventory management is only going to get more challenging: The Centers for Medicare and Medicaid Services [expanded](https://www.beckersasc.com/asc-coding-billing-and-collections/131-new-asc-procedures-may-become-device-intensive-if-cms-approves-rule-5-things-to-know.html) the number of device-intensive procedures for Medicare beneficiaries in an ASC setting.  ### Supply Storage The right thing in the right place at the right time should be the clarion call of supply chain management. But the human element intervenes, and staff may end up using a more convenient location to store items, even if it’s not designated for it. Storage rules and processes are critical to make sure supplies go where they’re supposed to go, and for keeping an accurate count of items on hand. ### Plan for Product Recalls Pay attention to product recalls. [MedWatch Safety Alerts](https://www.fda.gov/MedicalDevices/Safety/ListofRecalls/ucm629348.htm?utm_campaign=FDA%20MedWatch%20Recall%20Notice%20-%20Synergy%20and%20Stealth%20Station%20S7%20Cranial%20Software%20by%20Medtronic&utm_medium=email&utm_source=Eloqua) should be flagged for easy access. Though this recall was for neurosurgery software, it’s important for ASCs to have proactive knowledge of the safety of all devices and other supplies.  In addition, while not required to report device malfunctions, ASCs should make it a best practice to let the [FDA](https://www.fda.gov/downloads/MedicalDevices/DeviceRegulationandGuidance/GuidanceDocuments/UCM095266.pdf) know about product problems. ### Maximize Every Minute One [consultant](https://www.beckersasc.com/asc-turnarounds-ideas-to-improve-performance/12-best-practices-to-improve-asc-efficiency-and-increase-the-bottom-line.html) recommends that in order to attain a profit margin of 40 percent, medical supplies should account for just 25 percent of net revenue. Overhead “cost per minute" calculations go a long way to reaching the 40 percent profit benchmark. To get a handle on these costs, and run your surgery center at peak efficiency, it helps to have an ASC [inventory management system](https://simplifyasc.com/platform/) that makes your job easier. Simplify ASC has an inventory module that provides for flexible management of all vendors, product pricing, par levels, equipment and consignment. It knows what cases are coming up and allows staff to deplete items as needed, ties in with physician preference cards, and even accommodates for partial orders and cloning of purchase orders for regularly ordered supplies. **Learn what it’s like to love the way you work.** [![SCHEDULE A PREVIEW](https://no-cache.hubspot.com/cta/default/5258430/cf09fd3b-ccf6-4dd3-bbb1-93c5d3398039.png)](https://cta-redirect.hubspot.com/cta/redirect/5258430/cf09fd3b-ccf6-4dd3-bbb1-93c5d3398039)   By ![Norman Joseph](https://blog.simplifyasc.com/hubfs/norman.jpeg) Norman Joseph CTO Share [![Share on linkedin](https://blog.simplifyasc.com/hubfs/linkedin-icon.png)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.simplifyasc.com/find-sanity-by-optimizing-asc-inventory-management&utm_medium=social&utm_source=linkedin) [![Share on facebook](https://blog.simplifyasc.com/hubfs/facebook-icon.png)](http://www.facebook.com/share.php?u=https://blog.simplifyasc.com/find-sanity-by-optimizing-asc-inventory-management&utm_medium=social&utm_source=facebook) [![Share on twitter](https://blog.simplifyasc.com/hubfs/twitter-icon.png)](https://twitter.com/intent/tweet?original_referer=https://blog.simplifyasc.com/find-sanity-by-optimizing-asc-inventory-management&utm_medium=social&utm_source=twitter&url=https://blog.simplifyasc.com/find-sanity-by-optimizing-asc-inventory-management&utm_medium=social&utm_source=twitter&source=tweetbutton&text=) --- [Back to Blog](https://blog.simplifyasc.com/) Twitter Feed [Tweets by SimplifyASC](https://twitter.com/SimplifyASC?ref_src=twsrc%5Etfw) Related Posts - Educational / Industry [5 Insider Tips to Buying the Best Software for Your ASC](https://blog.simplifyasc.com/5-insider-tips-to-buying-the-best-software-for-your-asc) [EMR Software](https://blog.simplifyasc.com/tag/emr-software), [ASC Software](https://blog.simplifyasc.com/tag/asc-software), [Instructional](https://blog.simplifyasc.com/tag/instructional), [Thought Leadership](https://blog.simplifyasc.com/tag/thought-leadership), [Practice Management Systems](https://blog.simplifyasc.com/tag/practice-management-systems), [ASC Technology](https://blog.simplifyasc.com/tag/asc-technology), [ASC Operations](https://blog.simplifyasc.com/tag/asc-operations), [Nursing Leadership](https://blog.simplifyasc.com/tag/nursing-leadership), [ASC Reporting](https://blog.simplifyasc.com/tag/asc-reporting) Jan 12, 2022 One of the most important decisions you will make on behalf of your surgery center is deciding which software to implement in order to improve your business. To many folks, just the thought of implementing software beckons an onse \[...\] [Read](https://blog.simplifyasc.com/5-insider-tips-to-buying-the-best-software-for-your-asc) - Self-Promotional [Top 5 Questions We Get Asked](https://blog.simplifyasc.com/top-5-questions-we-get-asked) [EMR Software](https://blog.simplifyasc.com/tag/emr-software), [ASC Software](https://blog.simplifyasc.com/tag/asc-software), [Practice Management Systems](https://blog.simplifyasc.com/tag/practice-management-systems), [ASC Technology](https://blog.simplifyasc.com/tag/asc-technology), [Simplify ASC Platform](https://blog.simplifyasc.com/tag/simplify-asc-platform), [Digital Patient Chart (EHR)](https://blog.simplifyasc.com/tag/digital-patient-chart-ehr), [EHR Software](https://blog.simplifyasc.com/tag/ehr-software), [ASC Billing](https://blog.simplifyasc.com/tag/asc-billing), [Revenue Cycle Management](https://blog.simplifyasc.com/tag/revenue-cycle-management) Nov 10, 2021 Here are the most popular questions we field about Simplify’s complete, all-in-one solution helping ASCs improve their efficiency and profitability. 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Companies across the globe are at a constant risk of a breach due to backdoors, bad cybersecurity protocols, poor training, and overall lack of awareness \[...\] [Read](https://blog.simplifyasc.com/cybersecurity-in-the-asc-phishing) ```json { "@context" : "http://schema.org", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Brentwood", "addressRegion" : "TN", "postalCode" : "37027", "streetAddress" : "100 Westwood Place, Suite 120, " }, "alternateName" : "Simplify ASC", "areaServed" : { "@type" : "GeoCircle", "geoMidpoint" : { "@type" : "GeoCoordinates", "latitude" : "36.0338472", "longitude" : "-86.7986264" }, "geoRadius" : "150 m" }, "description" : "Simplify ASC is the only ASC management platform designed from the ground up to work just the way you do.", "email" : "", "image" : "https://simplifyasc.com/wp-content/themes/simplify/img/favicon/mstile-310x310.png", "logo" : "", "mainEntityOfPage" : { "@id" : "https://blog.simplifyasc.com/find-sanity-by-optimizing-asc-inventory-management", "@type" : "WebPage", "description" : "How ASCs can guide their own search for the best EMR software for their business." }, "naics" : "", "name" : "Simplify ASC", "sameAs" : [ "https://www.facebook.com/simplifyasc/", "https://twitter.com/simplifyasc", "https://www.linkedin.com/company/simplifyasc/" ], "telephone" : "(800) 595-9373", "url" : "http://www.simplifyasc.com" } ```