Value Analysis: Going from Good to Great in a Healthcare Value-Based World

More and more healthcare organizations have entered into value-based contracts with third-party payers in 2017. As the Studer Group predicts, “CMS continues to raise the bar on quality and patient perception of care, making it critical for (healthcare) organizations to have a foundation in place that can withstand the even tougher ones waiting in the future. Simply maintaining results is not enough.”

Going from Good to Great in a Value-Based World

Simply put, value analysis leaders must move their value analysis programs from good to great in 2018 to meet this challenge. Here are the critical elements of Value-Based Purchasing that you need to know to up your VA game that will enable your healthcare organization to compete in this new Value-Based Purchasing world:

  • Clinical Care: U.S. patient outcomes are no better than other developed countries, yet our costs are the highest at $9,024 per capita vs. an average of $3,620 per capita. There is something wrong with this picture! That’s why every facet of our healthcare organization’s delivery model must be value justified to reduce this unattainable per capita cost, while maintaining or improving quality. Your value analysis teams can be a major contributor for your organization’s search for lower cost and better quality in this value-based world.
  • Patient Experience: Patients generally can’t measure their medical care very easily, but they do know if the hospital’s halls are noisy, or when products are damaged and dirty or not available when needed. Make sure that your patient supply system considers these important factors in providing this service to each of your clinical departments and units. This too should be a value analysis job as your teams look for better ways to deliver improved patient experiences.
  • Efficiency and Cost Reduction: Your clinical staff is only as good as the tools they have to measure, monitor, and manage their supply costs, variation, and efficiency. Therefore, make sure in 2018 your value analysis program provides the analytical tools necessary for your clinical staff to wring the towel dry of their savings.
  • Patient Safety: If there is a quality issue with a product, service, or technology that has been evaluated by your value analysis teams that was not handled properly, it could lead to a patient safety issue. As a multi-hospital system administrator stated recently, we can’t control everything that happens to a patient during their stay, but their safety must be paramount. Be mindful of this fact when your VA team evaluates everything your hospital, system, or IDN buys this year.

Too Much Wasted Spending and Continuing Quality Issues

If we are honest with ourselves, we know that there is still too much spending and continuing quality issues at our healthcare organizations that will greatly affect our value-based reimbursement from CMS and other third-party payers this year. That’s why going from good to great with your value analysis program is mission critical in 2018 and beyond.