5 Ways to Create More Time to Perform Value Analysis

Of all the challenges that hospital value analysis practitioners are facing, the lack of time to perform value analysis appears to be on top of their list. With this said, here are five ways how to create more time to perform value analysis at your healthcare organization:

  1. Adopt Team-Based Project Management™ Model: Too often, value analysis teams are structured like committees, which requires little or no work from their committee members.  Instead, you want to adopt the Team-Based Project Management™ Model where all your team members are project management thereby sharing the workload of their VA team.
  2. Prioritize Your VA Savings Opportunities Annually: No value analysis project should be assigned without first estimating your saving opportunities. This way you can prioritize from the highest to the lowest saving opportunity to be worked on first. This will create more time for bigger projects.
  3. Separate Your New and Renewal GPO Contract Evaluations: There will always be new and renewal GPO contracts to be evaluated, however, most will have a small return on investment. Therefore, they should be dealt with quickly and efficiently to give your VA teams more time for your bigger VA projects.  You might even want to establish a separate VA team to deal exclusively with them.
  4. Establish Policy That Only Requests > $25,000 Will Be Reviewed: One of the best ways we have found to make more time for value analysis is to establish a policy that your VA teams will only review a new request that has a greater than $25,000 spend annually.  Your buyers then can evaluate all requests under $25,000 spend annually for their appropriateness.
  5. Only Review Requests That Improvements are > 5% Annualized: In addition to a policy of not reviewing requests for under $25,000 annual spend, you should also have a policy not to review a request that doesn’t yield savings or quality improvements by at least five to eight percent annually. The reason for this policy is that five to eight percent is about the cost of change at any healthcare organization.  If you don’t exceed this cost of change per VA project, you are losing money on every VA study you perform.

Healthcare Value analysis is a powerful savings and quality tool, but you need time to deploy it in your healthcare organization.  If you continue to get bogged down with an undisciplined approach to value analysis there will be no time left over for the big projects that bring about big results.  For example, we have a past value analysis client that only performs three or four value analysis studies annually, but they are high profile, with high engagement from their clinicians and bring about a high return on investment for their healthcare organization.  So, it’s not how many VA projects you do annually, but the quality and impact they have on your healthcare organization that really matters.