Tag: "commodity"

How to Integrate Utilization into Your Hospital's Contracting and Price Processes

How to Integrate Utilization into Your Hospital’s Contracting and Price Processes

Robert W. Yokl, Sr. Vice President/COO, SVAH Solutions What if you knew that your overall supply utilization (total cost per operating metric) was at best practice levels for the commodity and/or product group you are about to enter into contract negotiations on. Would this change your mindset on how you go about negotiating the terms of […]

Who Should Be Your Value Analysis Team Leaders?

Who Should Be Your Value Analysis Team Leaders?

Individuals need to be selected for their expertise and leadership qualities. We are seeing more and more healthcare organizations that are selecting their department heads and managers to lead their value analysis teams. Why? Because these individuals bring the expertise and leadership qualities to maximize your hospital’s value analysis goals and objectives in any given […]

Where Are You Getting Your Benchmarks?

Where Are You Getting Your Benchmarks?

Multiple benchmarking sources ensure that you are getting them right the first time. Benchmarking is an art and a science, but there are some hard and fast rules that need to be followed to ensure the best results possible. One hard and fast rule is that multiple benchmarking sources ensure that you are getting them […]

Are You Focusing on What Matters Most?

Are You Focusing on What Matters Most?

Price and standardization are important up to a point, but if you aren’t focusing your supply chain expense management efforts on utilization management — where it matters most —  you are losing the opportunity to save 7% to 15% on your total spend…period! Slippery Slope We often talk about utilization management in these terms: If […]

How To Avoid “Group Think”!

How To Avoid “Group Think”!

You need to diversify your VA team’s membership to energize your team. When selecting or replacing your value analysis team membership, you need to consider the diversity of your team’s members. Do they look alike, dress alike, and think alike (i.e., homogeneous) or are they edgy, rebels, and free thinkers (i.e., heterogeneous)? The reason I […]

Reduce, Control and Eliminate Wasteful and Unnecessary Supply Utilization Practices

Reduce, Control and Eliminate Wasteful and Unnecessary Supply Utilization Practices

Go beyond price and standardization to save more in less time Traditionally, healthcare organizations have focused their value analysis efforts on lowering the price and standardizing on the products, services and technologies that they are purchasing.  This attitude has carried over to the evaluation of group purchasing contracts where price, standardization and suitability are the […]

The Seven-Percent Savings Solution

The Seven-Percent Savings Solution

Why do we continue to pursue 1%, 2% or 3% savings solutions (i.e., price), when a 7% savings solution (i.e., utilization) is just as easily obtainable? For instance, I know of healthcare organizations that have spent months to achieve a 3% savings on their cardiac rhythm management products, when a 7% to 15% savings was […]