Envision the Future of Your Value Analysis Program
It is incredible the progress that value analysis has made in our healthcare industry as an accepted methodology for optimizing costs, quality, and functionality of the products, services, technologies, and even processes we use. Value analysis, using the classic functional approach, is the perfect process for breaking down any problem or challenge that you may be having at your healthcare organization.
Interestingly, value analysis has evolved somewhat, especially in how it’s commonly used by Supply Chain teams. This shift isn’t surprising, as the classic functional approach still delivers results — even though it may not be as complex or structured as methodologies like Lean or Six Sigma. While some attempt to make value analysis more sophisticated, doing so isn’t necessary to achieve meaningful outcomes. Its flexibility is actually one of its greatest strengths, allowing it to be applied across a wider range of areas within your healthcare organization. However, to fully realize its potential, you need a clear vision for how value analysis fits into your organization’s future — one that aligns with your unique goals and challenges.
It Wasn’t Raining When Noah Built his Ark
One of our company’s favorite sayings is, “It wasn’t raining when Noah built his Ark,” which is true about many of the challenges that we have in our healthcare supply chain world. My father, Robert T. Yokl — who was a Value Analysis Practitioner for over 50 years — often reminded me, “Don’t wait for your boss to tell you what the next step in your Value Analysis Program should be. Do your research and be prepared, so when a challenge arises, you’re ready to present your next-level ideas.” He frequently shared stories from his time as a Director of Supply Chain, when his CFO was too caught up leading multiple departments and had no time for Supply Chain. Anticipating that opportunities would eventually arise to offer solutions, reduce costs, or tackle pressing issues, he always had a plan ready. Back then, before the rise of national GPOs and other modern tools, value analysis was one of those forward-thinking plans.
SWOT Analysis Works
It’s tough to take a step back and look at your program in the mirror to try to envision where you can take it in the future. Keep in mind, VA programs will lose momentum on major initiatives if you don’t refresh them and add new advanced elements. Without new elements, your VA Program can lose its importance or even relevance if you are only doing the same old things over and over again. The best way for that not to happen is to take a step back and look in the mirror with a SWOT analysis (strengths, weaknesses, opportunities, and threats). See an example below:
| Strengths | Weaknesses |
|
Strong Clinical Representation Solid Leadership Evidence-Based Approach Ongoing Monthly Meetings Full Agendas Solid VA Process Handling Recalls, New Product Requests, Contract Conversions, Resilience |
Long Meetings (2 hours plus) Adding More Costs than Savings Attendance Below 80% Not Much Room to Do Other Things Vendors End Runs on VA Process Plate Appears Full, Not Sure We Could Do More |
| Opportunities | Threats |
| Validate Further into Reimbursement on New Product Requests to Not Only Validate but Ensure Payer Mix Works Every Time
Add Benchmarking to Find Out Where We Stand on All Categories Add Clinical Supply Utilization for a True Cost Management Element Create a New VA Team to Work on Utilization Only (may need new FTE) |
Change – Many Leaders Only See VA for What it is Now, Not What it Could Become No Budget for New Tools, Training, or Resources Time and People Power – Stretched Thin Now, How Can We Take More On? |
Value Analysis Resides in Health System’s Circle of Trust
The key for you is to realize that you need to keep moving forward with your Value Analysis Program to keep it fresh and advance it to the next level of cost and quality optimization for your organization. VA is embedded in the circle of trust at your healthcare organization so why not use it more to get more results? Unfortunately, you can’t just pull next-level ideas out of a hat – you need forethought, planning, education, and tools to go to the next level.
The Time is Now for Next Level Value Analysis
The good news for value analysis is that it is just scratching the surface as to the full potential of your Value Analysis Program at your hospital and/or health system. Because VA has been framed as “just new products” or “nurses doing contract conversions” it can easily get painted into the corner when it shouldn’t be. The time for VA is now to break out and handle more mission critical steps like savings beyond price which is right up VA’s alley. Take the plunge and start planning for your VA future now!
| About Robert W. Yokl, President of SVAH Solutions |
|---|
| Robert is the President of SVAH Solutions which provides value analysis, clinical supply utilization, and savings validation tools to help healthcare organizations gain the next level of savings beyond price and standardization. https://www.SVAH-Solutions.com https://www.SavingsValidation.com |
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