In healthcare, conversations around cost saving measures in value analysis, contracting, or supply chain meetings often default to “price at the pump” strategies that include chasing the lowest cost or best tier. On the surface, this makes sense — price is tangible, easy to measure, and contractually negotiated. But when price becomes the only driver of savings, organizations risk creating a cycle of short-lived savings that fail to deliver lasting impact.
First, prices can only go so low. Raw material costs, manufacturing constraints, tariffs, in addition to the research and development that drive medical technology all place a floor on pricing. Chasing the lowest price doesn’t eliminate those realities. Contracts also evolve as do tier thresholds, purchasing requirements, and pricing structures that experience reset every few years. What looks like a win today can easily shift at renewal.
Second, there is also the human factor. Staff fatigue is real. This includes value analysis, supply chain, providers, clinical staff, end-users, and our industry partners. Constantly switching products to capture the lowest cost introduces workflow disruption, frustration, and inconsistency. Not to mention the constant education and re-education that must occur with each change.
Third, and arguably the most important, while a lower price may reduce spend on paper, it doesn’t always translate into better outcomes for patients or positively for the organization’s bottom line. As reimbursements become lower and patients become sicker, we must be able to better align the right products to the right patients using evidence-based decisions.
So, how do we break free from a price-focused mindset? Value analysis serves as the structured process that bridges supply chain and clinical practice. It brings clinicians, supply chain leaders, and other stakeholders together to evaluate products not just on price, but on safety, efficacy, outcomes, and alignment with organizational goals.
The processes embedded in value analysis — such as evidence appraisal, utilization review, stakeholder engagement, and product lifecycle evaluation — create a framework for decision-making that outlasts any single contract cycle. Often, we find that facilities do not have a price issue or a product issue, it is often a practice issue. By standardizing how new products are introduced, how existing ones are monitored, and how utilization is tracked, value analysis ensures consistency and accountability across the system.
Within the broader healthcare supply chain, value analysis provides the “why” behind purchasing decisions. Supply chain negotiates the contract, but value analysis determines whether a product belongs in the organization at all, how it will be used, and how its performance will be measured. This dual lens helps protect against short-term decisions that prioritize cost over quality, reinforcing that the goal is patient-centered, evidence-based care. This is where clinical value analysis changes the conversation. Instead of asking, “What’s the lowest price we can get?” we need to ask, “How are we using this product, and does it add measurable value to patient care?”
True savings come not just from what we buy, but how we use it. By evaluating protocols, utilization practices, and product alignment with evidence-based standards, organizations can uncover opportunities for sustained impact beyond the contract cycle. A strategy that integrates clinical practice with supply chain discipline ensures that every product decision supports both patient outcomes and financial stewardship and it becomes a catalyst for long-term, value-driven transformation.
Article by:
Anne Marie Orlando, MBA, BS, RN, RCIS, CVAHPTM, CMRP, FACHDM, PNAP, FAHVAP, Vice President, Clinical Services at Yankee Alliance; President-Elect, Association of Healthcare Value Analysis Professionals
Anne Marie has been a critical care nurse for over 21 years with a leadership foundation in the Interventional Cardiology and Interventional Radiology space. During her supply chain tenure, Anne Marie held a dual role of Supply Chain and Clinical Resource Director where she operationalized many clinical initiatives while maintaining fiscal accountability. At the GPO level, Anne Marie served as the Director of Clinical Services for Yankee Alliance supporting member value analysis teams and their work with clinical utilization. Anne Marie is currently the Vice President of Clinical Services at Yankee Alliance and President-Elect of AHVAP.
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