Optimizing the Overlooked: The SPD Revolution

What will it take to get the C-suite to pay attention to the one department that is most often overlooked, yet has a profound impact on revenue, surgical throughput, quality, surgeon and nurse satisfaction, and outcomes???

For decades, hospitals have relied on the same playbook to cut expenses. But there is one area that has almost always been ignored: the Sterile Processing Department (SPD). It is time to modernize our approach and recognize the significant savings and benefits that come from optimizing this crucial department.?

The Hidden Costs of Neglect?

Neglecting the SPD can lead to a cascade of issues that significantly impact hospital operations and finances. Here are some of the hidden costs:?

• Surgical Delays and Cancellations: When the SPD fails to process instruments quickly enough to meet operating room (OR) demand, surgeries can be delayed or even canceled. This not only disrupts the surgical schedule but also leads to significant financial losses. Delays in surgical procedures due to SPD errors can result in lost billable OR time, which can amount to millions of dollars annually.?

• Excess Inventory Costs: To compensate for inefficiencies in the SPD, hospitals often maintain an excess inventory of surgical instruments. This approach hides the process inefficiency but results in a substantial financial investment in extra instruments. This excess inventory ties up capital that could be better spent on other critical areas.?

• Instrument Breakage and Repair Costs: The average breakage rate of surgical instruments due to sterile processing errors is around 5-10% per month. This results in substantial repair costs, averaging between $0.34 to $0.84 per instrument. Over time, these costs add up, draining resources that could be better utilized elsewhere.?

• Legal and Malpractice Costs: Errors in the SPD can lead to serious patient harm, resulting in legal and malpractice costs. Contaminated instruments can cause infections, leading to lawsuits and settlements that can be extremely costly. These legal costs, combined with the potential damage to the hospital's reputation, can have long-lasting financial implications.?

• Staff Morale and Turnover: Poor performance in the SPD can lead to frustration and dissatisfaction among surgical staff. Nurses and surgeons rely on the timely and accurate processing of instruments to perform their jobs effectively. When this doesn't happen, it can lead to decreased morale and increased turnover, which in turn leads to higher recruitment and training costs.?

• Patient Outcomes and Satisfaction: Neglecting the SPD can directly impact patient outcomes. Improperly sterilized instruments increase the risk of surgical site infections, which can cost up to $30,000 per incident. Additionally, poor patient outcomes can lead to decreased patient satisfaction and lower hospital ratings, which can affect future revenue and funding.?

The Benefits of Paying Attention?

When you invest in optimizing the SPD, the returns are substantial:?

• Improved Outcomes: Properly sterilized instruments reduce the risk of surgical site infections, which can cost up to $30,000 per incident.?

• Enhanced Quality: Consistent, high-quality sterilization processes ensure that surgical instruments are always ready for use, reducing delays and improving surgical outcomes.?

• Increased Retention: Nurses and surgeons are more likely to stay in an environment where they can rely on the quality and availability of their tools.?

• Boosted Throughput: Efficient SPD operations mean quicker turnaround times for surgical instruments, allowing for more surgeries to be performed each day.?

• Revenue Stabilization: By minimizing errors and delays, hospitals can stabilize and even increase their revenue. One additional surgical procedure per day can generate over $2 million annually.?

It is time to give the Sterile Processing Department the attention it deserves. By optimizing this often-overlooked area, hospitals can achieve better outcomes, improve staff retention, increase surgical throughput, and stabilize revenue. At Moab Healthcare, we help health systems boost operational performance, improve financial performance, and elevate quality and outcomes, all while solidifying culture in the OR.? If you are ready to break away from the old playbook and embrace a new strategy that recognizes the true value of the SPD, contact our team at [email protected] or call 1-833-773-8324.?