Healthcare Value Analysis Balanced Scorecard Can Up Your VA Performance

Healthcare Value Analysis Balanced Scorecard Can Up Your VA Performance

A Value Analysis Balanced Scorecard is a tool used to measure financial, customer, processes, and learning and growth data by value analysis leaders to improve their value analysis teams’ results. It was developed by Robert S. Kaplin and Dave P. Norton to give a balanced view of what should be important to managers financially and operationally. “The Balanced Scorecard allows managers to look at (their operations) from four important perspectives (see the exhibit).” Just as important, the Balanced Scorecard links performance to measurement. Lastly, “The Balanced Scorecard forces managers to focus on the handful of measures that are most critical,” organized in a single concise report. Just as important, it provides answers to the most important VA questions that need to be answered.

Value Analysis Balanced Scorecard

Categories Objectives Measures Targets Initiatives
Financial Increase Savings New Approved Purchases/ Annual Savings 7% increase in net savings Reduce Number Of New Purchase Requests Or Increase Savings
Customer Reduce The Time Of New Request Approvals Number Of Days To Approve 45 Days Automate New Product Request Process
Processes Increase Time For VA Study Completion Number Of Days To Complete 90 Days Automate VA Study Workflow
Learning & Growth Increase Value Analysis Team Certification Number of VA Certified Team Members 80% Certified Hire Trainers For VA Certification

Provides Answers To Most Important Questions

If the Balanced Scorecard is designed properly, it will give you answers to the questions you require to succeed in your profession such as:

How do our customers see us? Do they see value analysis professionals as partners in saving money; an impediment in getting their new products, services, or technologies approved; or, a resource to help them source the most appropriate products, services, and technologies for their intended use?

What must we excel at? Quicker turnaround of new product, service, and technology requests; saving twice as much as new product, service, and technology approvals annually; or being a go-to resource for your supply chain and clinical staff?

How do we look to finance? Are we implementing bottom-line improvements? Are our savings growing every year? Are we controlling the growth of new product, service, or technology requests?

How can we continue to learn and grow more? Do our value analysis teams have the skills and training to be proficient in value analysis? Do they have project manager training? Are they ready to lead VA teams?

Naturally, you can add your own questions and answers to this list as it relates to your own healthcare organization’s situation. The key is that you think through this development process so that you can continue to improve and create value for your hospital, system, or IDN.

Focusing On The Right Performance Measures In Value Analysis

Traditionally, performance measures were skewed towards a healthcare organization’s financial performance (e.g., revenues, ROI, liquidity, etc.), not its operations, thereby leaving a big performance measurement gap in other areas of your healthcare organization. As you can see, this challenge can be solved with a Balanced Scorecard that considers not only your financial performance, but also operational issues that you should be focusing on to succeed. Thus, ensuring that you are focusing on the right performance measures for your VA program. That’s how a Balanced Scorecard can up your value analysis performance.

About Robert T. Yokl, Founder & Chief Value Strategist for SVAH Solutions
Robert T. Yokl is President and Chief Value Strategist at SVAH Solutions. He has four decades of experience as a healthcare supply chain manager and consultant, and also is the co-creator of the Clinitrack Value Analysis Software and Utilizer Clinical Utilization Management Dashboard that moves beyond price for even deeper and broader clinical supply utilization savings. Yokl is a member of Bellwether League’s Bellwether Class of 2018.

Articles you may like:

Clinical Supply Utilization Management: It’s Easy with the Right Analytics

Clinical Integration for Your Value Analysis Program and Supply Chain

Benchmarking is Essential for Your Value Analysis and Utilization Management Success