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Home > Archive > January 2003
Editor's Page
Cost-Cutting at Whose Expense
Dan O'Connor

Dan O'Connor, Editor Cost-Cutting at Whose Expense?
Answer: If the Centers for Medicare & Medicaid Services (CMS) uses a cost survey to rebase ambulatory surgery center reimbursement rates in a manner similar to the hospital outpatient prospective payment system.

Question: When is cost-cutting not such a good thing?
It flies in the face of logic, but your cost-cutting efforts of today could drive down the reimbursement rates of tomorrow. Let's take as an example cataract cases. Whether it's the hunt for the cheapest supplies or the practice of using "re-sposables" (a friend defined this for me as a disposable instrument/article which is used repeatedly), slashing supply costs is an art form.

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