Episode Overview
In this episode of Value-Based Care Insights, host Daniel Marino explores the evolving role of operating room (OR) nurse leaders within the perioperative service line. As perioperative services become an increasingly important strategic and financial focus for hospitals and health systems, the demand is growing for leaders who can combine clinical expertise with business and operational acumen.
Joining the conversation is Cheryl Barratt, a seasoned healthcare consultant with over 30 years of experience in surgical services operations, system integration, and performance improvement. Cheryl discusses how perioperative nurse leaders, while strong clinically, frequently lack the training needed to manage the broader responsibilities of these roles. She shares practical insights into how organizations can support their development with leadership, financial, and strategic competencies that enable them to lead more effectively and drive long-term performance.
LISTEN TO THE EPISODE:
Daniel Marino:
Welcome to Value-Based Care Insights. I am your host, Daniel Marino. Many hospitals, of course, are focused on trying to increase their revenue, trying to increase their efficiencies. All of them have been focusing for a long time on reducing costs, and a big area that impacts certainly hospital financial performance is the activities that are done in the operating room. And whether it's the main operating room or it's the ASCs, the number of cases, the volume of cases being performed within a day, the efficiencies of that case, and everything from the pre-evaluation or preoperative services to post-operative care, all of that affects the financial performance of the hospital or the health system. And what we're seeing is because there's such a focus on that, and rightly so, many hospitals have expanded their strategic focus on the OR, and expanded that to really include it as a service line. Perioperative medicine service line is what we are beginning to see. Which is really kind of exciting for the hospitals, because again, it's a focus on how you think about it from a continuum of care perspective.
But also, if you're going to do it well, you need to partner with your surgeons. So surgeons in particular are excited about this because it allows them an opportunity to potentially do more cases or improve their own efficiencies and so forth.
But while doing this, even though the strategic focus is there, the infrastructure is something that remains a challenge for hospitals today as they start to expand their focus. And what I mean by that is the leadership, the organizational structure that's important to drive the success of a perioperative service line if you will.
Well, someone here to talk about this, I'm really excited today to have Cheryl Barrett join us. Cheryl is an RN and a seasoned healthcare executive. She's been in consulting for over 30 years, helped numerous hundreds of organizations across the country with improving their or and perioperative service line. As mentioned, she's an RN, and she also has acted as a vice president of perioperative services. So welcome to the program Cheryl.
Cheryl Barratt:
Thank you, Dan. Nice to be here.
Daniel Marino:
So, Cheryl, as we see these hospitals expand their service line focus, what are you seeing as the major gaps in the leadership particularly, say the OR managers?
Cheryl Barratt:
Well, where I see the gaps is basically, you know, learning to work in a new environment and basically not having some of the skill sets that make it more of a service line direction rather than kind of a siloed OR or periop direction. Basically the operative support areas. So I see that as an opportunity for nurses to learn more about business and have kind of a business acumen skill set that they bring to the table. That is not something that's easy to pick up. Right? I mean, it takes some dedicated work, and often involves going back to school, and you may be in a master's program in nursing that offers some of those courses. But I have found that actually concentrating in business, administration or hospital administration, really going kind of outside of nursing to get that additional education is really helpful.
Daniel Marino:
Well, absolutely, I mean, and you see it, because you know a good OR director is very clinical, right? He or she knows the clinical side of surgical services, knows, you know, maybe the efficiencies of the OR knows how to support their surgeon, their surgeons, and so forth. But the part that is meeting that's missing. And you touched on this, is taking a business perspective of what's current, not only in the OR but across that continuum of perioperative services, and many of the nurses have not been trained to do this right. So to build, to develop that business acumen, I think, to a certain extent is a challenge. But also it's an opportunity that's out there.
Cheryl Barratt:
Absolutely, absolutely. So. I remember when I made that decision a long time ago to go back to school, I knew I was going to be in classes with people who had never been in an operating room, and possibly would never be in an operating room until their old age. Right? So I was surrounded by people who were like business school candidates, right? And it was really different, really, really different in terms of the schooling, the education, the camaraderie with your fellow students and the expectations. There was no clinical part.
Daniel Marino:
No, it's all the business.
Cheryl Barratt:
Right? Yeah, yeah. And you know the challenges of accounting and finance, were definitely big hurdles for me to overcome. But has served me very, very well over the years to have that basic background and then be able to go toe, to toe with finance and really understand what they're trying to do and what you're trying to do, and collaborate together to meet the business objectives of the organization. Even to the point of trying to learn a little bit about coding. Coding is pretty important, right?
Daniel Marino:
It is.
Cheryl Barratt:
And you have to understand some of those basics to be able to be effective as a leader. You also, I think, another thing that's really changed within the surgical services is the whole idea of a dyad or a triad. So it's not just on the back of the OR director. Right? You're now in a dyad or a triad, either with your chief of surgery and chief of anesthesia, or one of the other right? It depends if you have a dyad or a triad. And working collaboratively to really help and steer the organization towards the goals of the organization. So no longer is the nurse taking a back seat as an administrator, but really is in the forefront with those two other really clinical people, and the nurse may bring more business acumen relative to the operating room to the table than the surgeons. But I can say that there is a huge push these days with both the surgeon and the anesthesiologist, who are in that active role as chiefs and as triad members, to also get some of that business education.
Daniel Marino:
Absolutely. Well there's such a right now as organizations are focusing on really enhancing a lot of their financial performance of the OR there's a major push to upscale all of the business acumen related to perioperative services. Right? So you can see that as the organization starts to evolve, that business focus has to come into play, you know. A couple of months ago we were doing an assessment at a hospital where we were looking at O services, and you know we had talked with them about what a high performing perioperative service line would look like. And one oof the questions that came down is, well, you know talk about the structure. Well, the 1st thing I talked about was the dyad model, as you said right, having, say, a vice President of perioperative services that works closely with a you know the chief of surgery or the anesthesiologist, or in some cases both. But it's also important to have a strong business manager there, because the perioperative, the vice president perioperative services is really a strategic role, right? I mean, he or she needs to know operations, and they need to do it well. But they also strategically have to think about how to grow the service line, how to grow the performance of the OR. And in order to do that, you need to have a strong business partner or somebody there that basically knows the ins and outs of the numbers.
Cheryl Barratt:
Right, right. So you know, I always advocate that the OR director have a strong sense of those numbers, really know what they are, but you know you don't want to spend your life doing Power Point Excel spreadsheets. Right? That's not your role. Right? So you're more of an executive. So you have to have that business manager. But, as I said, you have to know the data also because you do not want egg on your face relative to the data when it comes up, because it's going to be discussed. You have to be transparent. You have to know it. And if someone asks you what the formula for this is, what's the algorithm, you absolutely have to know. And not only do you have to know that, but you have to know within your own system what are the inclusion and exclusion criteria. So that you are, when a physician asks you well, let's say, for turnover time, you know, if it goes past 60 min is that included or excluded? You need to know that.
Daniel Marino:
Yeah, yeah, absolutely. Well, if you're just tuning in, I'm Daniel Marino, you’re listening to Value-Based Care Insights. We're having a fascinating discussion on enhancing the OR and perioperative services, and in particular, you know, upscaling the OR director to more of a service line, Vice President of Perioperative services leader. So Cheryll, one of the questions as you were talking, I thought about is, it's got to be a pretty difficult paradigm shift for many of the nurses who've just been used to managing clinical operations, serving the physicians and so forth.
And a lot of times the ones that do a good job, you know they take care of their surgeons. But when you're moving into more of a vice president or a service line leader, you really need to do what's best with the organization. So there's a bit of a you know, maybe a battle there, right? I mean serving the physician or serving the organization through advancing the perioperative service line when you were working in the OR, and you clearly made that leap. How did you manage through that.
Cheryl Barratt:
Well, one of the things I did was really work very closely with my CEO. So I found out what the needs were from their perspective and then translated those and involved my chief of surgery and chief of anesthesia. We didn't always agree.
Daniel Marino:
Sure.
Cheryl Barratt:
You know, that's the, actually, that's the best part of an organization is to have collaboration between these 3 people and serve the organization. And you know you win some. You lose some. You don't always win right? You don't always get your way, but it's not about getting your way. It's about advancing perioperative services within the organization and giving the best product to your client. The patient.
Daniel Marino:
Right? And yeah, serving the patients. And it's got such a huge opportunity around it, right?
Because if you know, these leaders in perioperative services now have a real opportunity to make a difference within the organization. They can make a difference by reducing costs, and probably have the ability to work directly with the purchasing folks, or certainly with the surgeons, to streamline some of the supplies, and so forth, which they probably couldn't otherwise do as the OR director.
I think there's also an opportunity to think about growth. Right? How do you really bring in additional surgeons that's going to expand the financial performance of the OR is what. As well as then, you know, all of those things that are important around say block utilization, or the things that really drive the efficiencies of the OR so I think it's I mean, it's a great role, as you know, on paper. I think the challenge is how we get, or how we get the leader to kind of upscale themselves and take advantage of those opportunities.
Cheryl Barratt:
Absolutely, and the key is education, and the key is experience right? The more you do it the better you get at it right. And the more you're surrounded by great partners in your chief of anesthesia and your chief of surgery, the better you all progress together towards meeting the goals of the organization and serving the clients. And that's exactly what every nurse, every anesthesiologist and every surgeon wants to do, is serve the client and the patient and their families and support them through. You know, surgery is traumatic, right, no matter what it's traumatic, and we need to have that empathy as well as that knowledge base to provide what is necessary for the patient at a cost that is reasonable.
Daniel Marino:
Right? Right? Absolutely. So. You know, when, when we're working with organizations, one of the philosophies that we put in place is, you need to have a strong governance model, right? So the governance model should include the senior say, surgical leaders, clinical leaders, operational leaders that could drive a lot of the performance of the OR right, and that governance becomes really important. How does the role of the perioperative service line leader change as you start to evolve that governance model.
Cheryl Barratt:
Well, I think one of the ways it changes is, you don't just follow a script of what the policy says. Right? So let's say. For example, 10 years ago, the policy said “We are going to have a 1 day release time.” Well, a 1 day release time may have worked for everyone back then, or possibly didn't. And you had a lot of disagreement about it. But today you have to look at it kind of globally. What does it mean for every single service?
Daniel Marino:
Yeah.
Cheryl Barratt:
It means something different if you have all of your patients basically scheduling within a 2 week period of you doing the surgery versus months out like, if you're an ophthalmologist, right? So you have to take into account all those needs and tailor, the governance and the policies to meet the needs of those surgeons and their patients.
Daniel Marino:
Yeah, I think you're right. I mean, you know, the service line leader, the Vice President of Perioperative services does really need to think more at the 10,000 or 20,000 foot level, right, as opposed to in the weeds. When he or she was running the operations of the OR they were in the weeds. Right? And it was all about, how do we create direct efficiencies, room by room, or, you know, for the supplies or for the individuals. But when you're placed in this leadership role, when you're thinking about it at a higher level. You really do need to think more strategically.
Cheryl Barratt:
Yes.
Daniel Marino:
I keep going back to the fact that it's a real paradigm shift for folks. It has to be.
Cheryl Barratt:
Yeah. And I think the thing, the challenge is keeping up. So keeping up with the literature, keeping up with what's going on at conferences. You have to stay engaged. You absolutely have to stay engaged. You don't want a new service coming in, or a service line coming in, specialty, and you don't know anything about it. So trying to keep up, even if you don't have that service at your hospital right? You have to keep up, and it means not only going to conference, you have to read the literature, you absolutely have to see what is best practice out there, or leading practice and work towards that leading practice. You know. One of the things that I really took to heart in my nursing education was the difference between when a best practice is introduced, and when it's implemented widely, and you know it can be a 13 to 15 year gap. We don't have 13 or 15 years anymore to get to best practice right? So keeping up with the literature and then doing performance improvement to reach those levels with the collaboration of your surgeons and anesthesiologists and leveraging your surgeon and anesthesia partners to help you in that endeavor.
Daniel Marino:
So when, when hospitals are thinking about upscaling their surgical services, their or services into more of a perioperative service line, should there be a very focused strategic initiative around developing that OR leader into a perioperative service leader? Or in your experience? Is it better to maybe go out into to recruit a seasoned individual that could really drive it. I mean, I guess it comes down to do you build it within, or do you go out and sort of buy it.
Cheryl Barratt:
I think it really depends on the organization as well as who's in place at the time. Right? And if you don't have somebody who has business acumen. What resources do you have within the organization? Some places have really great management training within their organizations. I would say, that's probably lesser what I see than more right. There may be some, but there's typically not. It's not like going to school, right? It just like isn't like going back to school, and that can be kind of an intro. But I do see more and more organizations recruiting for the best talent. But the best talent is hard to come by. And you know the typical OR director position is open for a very long time. If you're recruiting from the outside, so there's always at least 100 positions open across the country always. So you have to come up with the money right, to pay them well, and if you don't have the internal talent, perhaps giving them a mentor is helpful, and some education, or really encouraging that they get that education. Not every place can have, you know, somebody with experience. So we have to grow our own also.
Daniel Marino:
We have to grow our own, I mean, especially in rural areas. I mean, it's, you know, the need for human capital is probably the biggest challenge that they have. But I think for all organizations, as you're starting to really create this position, groom this position for success, having the right education in place. And you know I totally agree with your perspective on having a mentor. I think that's the best way for folks to be able to learn. But you have to invest in your people right? You have to be able to grow it. So as we're thinking about this and the value of the perioperative service line. Do the typical or do the evolving role, he vice President of perioperative services? Are their roles typically just confined to what occurs in the OR or do you see this role also expanding to say the ambulatory surgery center, or even having some influence in the surgeon's offices? Right? Because what happens is the surgeon's office with consults directly impacts what occurs in filling their block schedules and their block utilization. Thoughts on that?
Cheryl Barratt:
Yeah. So actually, I've seen kind of two different ways to approach this. One is to really kind of have. Or actually, there's three. One is still kind of very periop oriented, pre-op you know, ambulatory surgery, the OR, pacu and phase two recovery. That's kind of old school, right? Because the continuum starts well before that. The continuum starts all the way back in the physician's office. So I see some organizations linking the office management with the periop director. So that's 1 movement. I also see other organizations linking the post-op on the floor to the periop manager. So it really depends on kind of the philosophy within the organization. But I've seen both of those and I personally favor the pre-op because there's so much that can be done from a prehabilitation perspective with the patient, so that we truly do impact the length of stay and outcomes.
Daniel Marino:
Yeah, I agree with you. I think the you know, the Vice President peroperative services, you know. If preoperative services, preoperative valuation is not reporting to him or her frankly, I think that's a bit of a mistake. I think they have to have an influence, because what they do preoperatively directly impacts what happens post-operatively right. And when you look at readmissions, when you look at even influences in length of stay or transitions of care, you know it all goes back. It's really not what happens in the operating room. It's what happens prior to that. So I think that influence really becomes key. But I find it fascinating with the evolving reach and responsibilities that these roles are going to start to undertake. And I think to your point, I could see a lot of these roles, maybe not directly responsible for, say the surgeon, the ambulatory clinic, surgical offices, but influencing what goes on there because there is such a strong connection.
Cheryl Barratt:
Absolutely, absolutely. As I said, especially with the whole concept of prehabilitation, right? Not putting the patient on the schedule until they're in shape for the surgery. Right? So that's a paradigm shift that's definitely a paradigm shift. And to learn more about that in periop medicine is imperative. So even if you're not responsible for that as the director, knowing about what should be happening relative to prehabilitation is really powerful information that you can work with your chief of surgery and chief of anesthesia, and have a risk stratification model in place, so that you're putting patients on the schedule when they're ready to go to surgery.
Daniel Marino:
Yeah, absolutely, absolutely. Well, Cheryl, this has been great, and I know, you know, for many of our listeners who have given a lot of thought in expanding their surgical services to more of a perioperative service line having the right individual in place to drive this, I mean, is is absolutely. critical for success. And I really appreciate you know, you coming on and talking about this. For any of our listeners who may want more resources or have some questions, are there any sites or any resources out there that you can direct them to? And if you're comfortable, I would even love for you to share your contact information.
Cheryl Barratt:
Sure. So I think if you're thinking about expanding your skill, set to really do a good in-depth, look at if you're a nurse right? Not everybody that runs an operating room is a nurse. But if you're a nurse to look at programs within your area, either online or you know traditional schools to expand your knowledge within nursing. There are schools that concentrate on both the business aspects as well as the nursing aspects in master's programs. So that would be one resource to look at. But also explore joining organizations outside of nursing like ACHE, HFMA. And there's one organization that I really love because it's truly collaborative. It's nurses, it's physicians, it's surgeons, it's anesthesiologists who get together every year the American College of Perioperative Medicine. Anybody who is clinical or non-clinical, would really benefit from joining that organization and going to their annual conference.
Daniel Marino:
Yeah, I couldn't agree with you more. And I think if folks can begin to look at that, even those that are outside the clinical focus. You know that that support the business acumen would be great. Real quick, any of our listeners want to get a hold of you, any thoughts on how they can connect?
Cheryl Barratt:
Yeah, Cherylbarratt@cbarrattassociates.com.
Daniel Marino:
Wonderful. Well, Cheryl, thanks for coming on. Wonderful, you have a clearly, a huge breadth of experience. Really appreciate your insights. Thank you very much.
Cheryl Barratt:
Thank you.
Daniel Marino:
And for our listeners, of you want to learn more about this topic or any of the resources that Lumina Health Partners has related to perioperative services, service line development, OR efficiencies, or any of our topics we cover on Value-Based Care Insights. Please reach out to dmarino@luminahp.com or visit luminahp.com. And want to thank all of our listeners today for tuning in until our next insight. I am Daniel Marino, bringing you 30 min of value to your day. Take care.