Too many healthcare value analysis practitioners believe that they are saving as much as they can with their value analysis program, yet from our observations most are only touching the tip of the iceberg.
How can I make this claim?
Well, we see the results of value analysis initiatives at hundreds of hospitals, systems and IDNs annually that show us that more double-digit value analysis savings are available for those value analysis practitioners who use two new ways with their data and analytics to close the gap in their value analysis savings as follows:
1. Track, trend and then monitor the in-use cost (i.e. utilization) regularly of all the products, services and technologies you are buying, which will identify hundreds of utilization misalignments averaging 26% in additional savings.
2. Identify new standardization opportunities that have been missed, not based on best price, but on recognizing lowest cost functional alternatives in your supply streams. For you see, maximizing your standardization in the new millennium isn’t about searching for better pricing through standardization, but using your data and analytics to remove variation in your supply streams.
Improving your value analysis savings will require you to embrace data-driven decisions like never before, since the biggest savings opportunities in value analysis can’t be seen with the naked eye. Only by employing time tested value analysis analytics will you be able to optimize your supply savings opportunities.