Most hospitals, systems, and IDNs have a value analysis program, but what is holding them back from having a Total Value Analysis Program that is sustainable, evidenced-based, and organization-wide with a repeatable VA process? That’s the question we recently asked scores of supply chain and value analysis professionals this summer. Here are the answers (in descending importance) to this mission critical question and my reaction to them:
- Time: Not having the time to construct a more comprehensive, complete, and far-reaching Total Value Analysis Program seems to be the primary reason for hospitals, systems, and IDNs not moving to the next level of VA performance. However, through delegation to your team members and automation of your VA process, much more can be done to improve your value analysis program. Don’t let time constraints keep your VA program from being the best that is possible under constrained conditions.
- Organization Inertia: No organization likes changes; therefore, you will find that changing behaviors through your VA process will always be a challenge. The good news is that you can chip away at your organization’s inertia every day until you have a breakthrough that opens the door to recognition, approval, and support for your VA efforts.
- Staffing/Resources: More staffing and resources will always be an issue for supply chain and value analysis professionals. That’s why I harp on delegation, automation, and systematizing of your VA process to squeeze even more productivity out of your current staffing and resources. That’s how you supercharge your Total Value Analysis Program to be better than just good.
- Management Buy-In: The secret to management buy-in for your value analysis program is to have your senior management chair and sit on your healthcare organization’s VA steering committee and teams. Through engagement (not lip service), you will finally receive management buy-in to your VA initiatives.
- Other: Not knowing the exact reasons that are holding back these value analysis programs, it is impossible to comment on them. However, it’s my guess that these reasons are unique to each hospital, system, or IDN that we polled and therefore need to be settled at their own facilities and can’t be generalized.
There could be other reasons that are holding back your healthcare organization’s Total Value Analysis Program, but I would make a bet that the above reasons represent 80% of your challenges. If you can think of any others, please e-mail me at [email protected] and I will share them with our readers.
Total Value Analysis Program: The Ultimate Supply Chain Savings Strategy
Value analysis is now an integral part of almost every healthcare organization’s savings strategy going forward; therefore, it needs to have as comprehensive and far-reaching impact as possible to be truly successful. Remember, “There are only two options in value analysis: Make progress or make excuses.”