What is a Materials Manager?

The Materials Manager of an ASC is usually in charge of multi-million dollar equipment as well as the supply budget. For the most part, the Materials Managers within our organization are clinical staff members that "inherited" the job. It is a job where there is usually very little recognition, but comes with great responsibilities.

When you think about increasing revenue and profitability, things such as surgeon recruitment, reimbursement and increasing patient volume may come to mind...but there is one area of untapped potential that can make a great impact on the financials of your ASC: Materials Management.

 A good Materials Manger is crucial to the Supply Chain and the the ASC. They know the importance of controlling and reducing costs and are aware of how important this is to the health of the company. They also know that this is an ongoing, continuous process. Inflated expenses can eat up profits quickly and wipe out any prospect of profit gains. 

Your center can increase profits without increasing or changing patient volume. You do this by reducing some of your major operating expenses, one of them being your supply costs. Lower costs may be obtained by some of the following methods: contract tier movement of supplies you may already be ordering, through corporate standardization and by maximizing contract utilization, by eliminating shipping costs/minimum order fees and by improving efficiencies when it comes to storing and retrieving supplies. All of this combined is known as the Supply Chain.

You can keep Supply Chain expenses down by working closely with your Corporate Supply Chain Team. We have dedicated resources on a variety of specialties that will educate, guide and help you gain control over all Materials Management operations in your center. Please know that you are not alone in this process. Let us help.

Ultimately, reducing supply and inventory costs can't be left to just one person at the facility or one department. To keep costs to a minimum, it takes everyone at your facility working together, including management, staff and physicians alike. It takes an overall shift on how we view Materials Management. Materials Management is a crucial part of operations and more attention and time should be allocated to it. 

     

Some of the responsibilities of a Materials Manager are:

  • Working with the Corporate Supply Chain to enforce cost saving initiatives and corporate-wide standardization efforts.
  • Daily management of all inventory, as well as all processes related to par levels, purchasing, backorder management, conversions, consignment management, receiving, returns, credits, stocking as well as working through any invoicing problems.
  • Maintaining the integrity of purchasing data through proper checks and balances. This includes tracking supplies by capturing all items ordered on PO's, confirming and managing PO prices, receiving properly and in a timely manner (creating one receipt in ENVI per delivery/using correct receipt date) in order to expedite the invoice payment process and avoid late fees, to prevent accounts from going on credit hold and in order to produce accurate accruals.
  • Responsible for leading and processing physical inventories and for the accuracy of inventory counts. Takes corrective action against inconsistencies and prevents them in the future.
  • Maintains preference cards to ensure accurate case costing and billing. In some ASC's, Materials Mangers are also responsible for proper billing of implants and are in charge of implant reimbursement through third party billing (IPG).
  • Leads by example and motivates staff to create a collaborative working environment.

We look forward to working with you!

Jessica Rodriguez | SUPPLY CHAIN MANAGER
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