Strategic Value Analysis In Healthcare
|
Strategic Value Analysis In Healthcare |
|
|
|
|
STRATEGIC VALUE ANALYSIS NEWSLETTER |
|
Home Weekly Strategic Value Analysis Newsletter ValueNet Central TM Value Analysis Software
|
 |
SPANNING THREE DECADES OF VALUE MANAGEMENT LEADERSHIP May 15, 2002
VALUE-BASED EVALUATION/SELECTION SYSTEMS AREN’T BEING EMPLOYED IN HEALTHCARE TODAY! ____________________________________________________ We Just Say They Are To Make Our Bosses Happy! ____________________________________________________
Robert T. Yokl, President- The HCP Group, Ltd.
If you now have a Products Evaluation Committee, Value Analysis Committee or Value Team(s) that is evaluating and selecting your products, services and technologies on gut feel, limited information, outdated history, emotions or consensus --- you are going in the wrong direction. It’s time to stop, look, and listen, then re-invent your committee or team into a value-based system. You and your bosses will then be really happy with the results!
Stop Thinking You Have All The Right Answers What’s holding back the development of value-based evaluation/selection systems at most hospitals and systems is that everyone believes that they have the right answers. They’ve been evaluating and selecting products, services and technologies for many years now, so what’s so new about a value-based system?
What’s new about a value-based system is that: (i) it doesn’t consider price until value has been determined, (ii) it doesn’t involve trials of any kind, (iii) it is driven by customer functional requirements only, (iv) its goal is customization vs. standardization of all products, services and technologies, (v) it will increase your savings and customer satisfaction by a factor of ten and (vi) materials managements’ role is to facilitate, coach and mentor, rather than being the driving force in the process.
Look At How Your Committee or Team(s) Is Performing If you have the same old faces on your committee or team(s), if 50% of your members don’t even show up for meetings, if it takes months to make most decisions, if 80% of your savings are GPO related, if senior management rarely attend your meetings, and your chairperson or team leader is from your material management or administrative staff, then you are looking at a committee or team that’s performance is degrading, not improving over time. Listen To What Your Committee or Team Members Are Saying How much time does your committee or team talk about price? Do they frequently debate over quality issues? How much time do they talk about GPO contracts? How much time is spent talking about customer’s functional requirements? Do two or three people do most of the talking? How much time is spent talking to customers, stakeholders and experts? How much time is spent talking to sales representatives? If the answer to these questions is that 80% of our committee or team members’ time is spent talking about price, quality, GPO contracts or with sales representatives vs. talking about functions, customers and processes, then determining best value is not in your decision-making equation.
Re-invent Your “PST” Evaluation/Selection System to be Value-Based If you want to continue to get the same results on your product, service and technology evaluation and selection process that you have been experiencing over the last few years, then keep right on doing what you have been doing and maybe you will continue to make your bosses happy. However, if you want to move to the next level of maturity with a value-based system, you will need to re-invent your evaluation/selection system (purpose, people, and process) to enable you to determine the best value products, services and technologies for your hospital or system as opposed to price driven decisions that you are making now.
Copyright © 2002 The HCP Group, Ltd. Robert T. Yokl, President, The HCP Group, Ltd., has over 35 years of experience as a consultant and manager in the field of Supply/Value Chain Management and is one of the country's leading healthcare experts in value analysis, value engineering and materials management. He is the developer and program leader of the award winning Certified Value Analysis Practitioner Training Program™. Mr. Yokl is also the developer of the healthcare industry's leading ValueNetCentral™ Value Analysis Software. Over the past two decades he has trained thousands of healthcare managers in his patented Strategic Value Analysis™ and Team-Based Project Management™ processes and has assisted scores of organizations in developing their own value management programs. He has published six books, videos and audios on supply/value chain management. His latest book being, “ Strategic Value Analysis™: The #1 Smart Strategy for Taking Cost Out of a Healthcare Organizations’ Supply/Value Chain”.
|
|
 |
|
|
|