With very few exceptions, every hospital, system, and IDN has an active value analysis program to evaluate new purchase requests, review and approve new and renewal group purchasing contracts, and trouble shoot and problem solve product, service, and technology issues. Yet, how many of us have reassessed our healthcare organization’s value analysis program for efficiency and effectiveness lately?
Here are five not-so-obvious ways to reassess your value analysis program without too much work on your part:
- Are your new purchases costing your hospital, system, or IDN more money than you are saving? This isn’t a trick question. If you are approving more new purchases annually than you are saving annually in purchase dollars, then you are heading for a lot of red ink on your healthcare organization’s balance sheet. If you track both of these numbers (new purchases and new savings) your VA team will have a tendency not to approve more new purchases than you are saving.
- What is the average attendance at your value analysis meetings? If your team meeting attendance has fallen below 80%, then you aren’t getting the input you need to make the best decisions. I would suggest that you post the attendance with your minutes to raise your VA team members’ consciousness on this issue.
- Do you have an annual savings goal that you have budgeted every year? There is no better motivation to concentrate your VA team’s efforts than having a savings goal posted, tracked, and published on a monthly basis.
- Is it taking your VA team more than 90 days to complete 80% of your value analysis studies? If so, this is a tip-off that something is wrong with your value analysis process. Generally, this symptom means you need a new rule that if any VA project goes beyond 90 days, it needs to be re-approved by your VA steering committees. This usually solves this tardiness problem!
- Do you have a defined value analysis process that your team members follow on each study? If you don’t have repeatable steps in your value analysis process, then you are reinventing your process on every VA study. Is this what you want to do?
Value analysis is a powerful technique to save money, maintain and improve quality, and remove waste and inefficiency from your healthcare organization’s supply streams. However, if it isn’t a well-oiled machine it will cost your hospital, system, or IDN time, money, and resources because of its inefficiencies. Take this quick test to see if your value analysis program is meeting the highest standards possible.