Is Your Hospital’s Value Analysis Program Current, Relevant, and of Value?

Sometimes we do things over and over again, often for decades, without asking this question: Is what we are doing current, relevant, and of value?

We have been called in dozens of times to hospitals, systems, and IDNs to answer that exact question about their healthcare organization’s value analysis program. Here are four categories you can use to rate your own VA program:

  1. Is the VA program employing best practices? For instance:
  • Employing software to manage VA program details
  • Reporting savings to management on a monthly basis
  • Only reviewing products with values over $5,000 annually
  1. Is the VA program organized to save? For instance:
  • Is there a steering committee to guide the VA program?
  • Are they using a project management approach?
  • Is a department head assigned as a team leader?
  1. Is the VA program making savings happen? For instance:
  • Are you saving 3% to 5% of your annual spend?
  • Are you spending most of your time on GPO contracts?
  • Are you saving more than you are approving?
  1. Is the VA program of value for time invested? For instance:
  • Are you expending more labor costs than you are saving?
  • Do you have too many meetings where no savings are reported?
  • Do you have no annual savings goal to measure value?

These four categories are the starting point for you to ensure that what you are doing is current, relevant, and of value within your own value analysis program.