Four Things to Help You Lead the Next Wave of Value Analysis Transformation

Warren Bennis advises us that, “The manager accepts the status quo; the leader challenges it.” Therefore, we can never be satisfied as value analysis leaders. We must always be looking for new and better ways to improve our value analysis program to enable our healthcare organizations to remain competitive. With this said, here are four things that will help you lead the next wave of value analysis transformation at your healthcare organization:

  1. Utilization Benchmarks: If you aren’t benchmarking (*) to identify your utilization misalignments, you are losing millions of dollars every year in waste and inefficiencies in your supply streams. Remember, this is where your new and better supply expense savings reside, as much as 7% to 15%.
  2. Best Value Formulary: It’s not enough to standardize on the products, services, and technologies that have the lowest pricing for your healthcare organization to remain competitive. You will now need to standardize on the products, services, and technologies that are the best value or the best in-use total cost.
  3. Value Analysis Software: If you are still employing multiple spreadsheets, listservs, or home-grown tools to manage your value analysis program, you are missing the opportunity to hyper-organize all your value analysis activities (meeting minutes, agendas, project reports, savings reports, etc.) in one repository. By doing so, you will improve your VA’s productivity and performance three-fold.
  4. Evidenced-Based Library: If you are relying on your vendors, or worse yet, Google to provide evidence for your value analysis evaluation, you are shortchanging your value analysis team members and clinicians of the vital unbiased evidence they need to do their job. Don’t look for shortcuts when it comes to evidence. Secure the best evidenced-based library (data), meaning, more than one evidence service provider that is available to you.

Value analysis is a maturing discipline, but there is always room for improvement. That’s why these four things will help you to transform your value analysis program from good to great, almost overnight.

(*) If you would be interested in hearing more about our new Clinical Supply Utilization Benchmarking Network™ please e-mail us at ryokl@SVAHSolutions.com.