Every hospital, system, and IDN is expanding beyond their healthcare organization’s walls to include physicians’ offices, home care, hospice, surgicenters, urgicenters, skilled nursing facilities, etc. to provide for a continuum of care in their community. What does this new healthcare model mean for value analysis professionals? How should these entities be treated under value analysis and why does it matter?
Move from Inpatient Care to Population Care
Due to the reduction in reimbursement for inpatient procedures, competition, and patient preference, most hospitals have moved their patients out of this high-priced care into outpatient settings. This has led to the buying of thousands of products, services, and technologies for these outpatient entities.
How Should This New Healthcare Model Fit Into Your Value Analysis Program?
First off, every new outpatient product, service, and technology should come through your value analysis program. The only question is how to do it. What we recommend to our clients is to establish an outpatient value analysis team (with its members representing outpatient entities) to review and approve all new outpatient commodities and investigate new savings opportunities in their area of responsibility. We recommend this outpatient value analysis protocol because your outpatient facility’s requirements can be different than your hospital’s requirements. Meaning, what works in your hospital might not work in an outpatient setting.
Worst Mistake Made by an Outpatient Value Analysis Team
Based on experience, the worst mistake that can be made by an outpatient value analysis team is to insist that your physicians’ offices, urgicenters, surgicenters, etc. standardize on the products, services, and technologies your hospital uses. The reason for this statement is that some of your hospital’s standardized commodities could be too costly, too elaborate, or a value mismatch for your outpatient entities. To avoid this from happening, make sure you understand the functions that your outpatient facilities are trying to meet before ever standardizing on your hospital’s commodities. For example, maybe they don’t need the quality of floor gloves your hospitals are buying now or maybe they need a higher quality. This is the type of decision your outpatient value analysis team would be charged to make.
Value Analysis Law: One Size Doesn’t Fit All Situations
We would like to leave you with one Value Analysis Law to ponder: One size doesn’t fit all situations. That’s why you need an outpatient value analysis team to ensure that the requirements of your outpatient entities, which are different from your hospital, are carefully evaluated, weighed, and decided upon. Warning! Treating your outpatient entities just like another hospital department could be a fatal mistake.