Recent Case Study
In addition to operating up to four corporately owned clinics, Sleep Management Services of America (SMSA) entered into a management agreement that manages the daily operation of three clinics that are owned by a large hospital in Northeast Florida.
The hospital was experiencing less than satisfactory results within the clinics with internal staff and practices. The management agreement that was developed addresses the following scope of services.
- Scheduling: SMSA provided the staffing and advised the patient as well as scheduled the patient at the appropriate clinic.
- Technical Management: SMSA employed, coordinated and managed the technologists that conducted and scored all studies within the clinics.
- Diagnostic Equipment: SMSA coordinated with the clients IT staff to install diagnostic hardware and software and necessary upgrades for conducting sleep studies.
- Medical Director: SMSA assisted the client with the selection of medical directors for each facility.
- Licensure and Regulatory Compliance: SMSA complied with all internal requirements to conduct sleep studies and assist the client with keeping clinics in compliance with any regulatory groups (AASM, Joint Commission).
The results of the relationship have been excellent. A synopsis of key operating statistics is as follows:
- Studies increased 20% between 2013 and 2015 at one site and 34% at the other location during the same time.
- The client has since added an additional four-bed clinic within a new suburban hospital. The pace of studies within this startup will exceed 650 within the first year of operation.
- Tech to patient ratios has been improved to an average of 2 patients per 1 tech. The client had been operating on a one to one basis.
- Facility utilization has grown from 22% to 60% within the original two clinics.
- The client was experiencing fluctuating expenses per study which had a detrimental impact on operating margins. SMSA proposed a fixed fee per study contract to the hospital which resulted in a 15% decrease in operating costs.
- SMSA offered an employment opportunity to the client’s staff at a lower base pay rate and a limited benefit package.
- The results of this relationship have produced an operating margin increase of over $370,000.00 annually within the original two clinics.
- The third clinic has produced more than $520,000.00 in operating margin which represents a $215,000.00 gain from what the client projected using internal sources.
Sleep Management Services of America has the staff and experience to expand their managing and consulting relationships locally, regionally and nationally. By entering into a contractual relationship the client will gain financially and professionally from the relationship.
The different fields of medicine are constantly expanding and the field of Sleep Medicine has appreciated a tremendous amount of growth over the past few decades. The American Sleep Association has helped to not only educate the medical field but also the millions of people on the importance of sleep health and the recognition of sleep disorders.
To see how Sleep Management Services of America can help your sleep practice, feel free to contact one of our Sleep Professionals for a complimentary evaluation of your sleep center or go to our Contact Us page for more information.