Value Analysis in Healthcare Non-Salary Expense Reduction Supply Chain Management Savings Hospital Consulting and Software

Case Study - 3-Hospital University Teaching IDN Saves $7 Million

WHY - Due to drastic reductions in state funding and the need to further invest in new technologies that are expected of university institutions. 3-Hospital University Teaching IDN contracted SVAH to employ all aspects of our Strategic Value Analysis System and e-Value Analysis Software.

GOAL- to deploy 8-Teams System-Wide to systematically attack (documented by SVAH) utilization opportunities and high value targets.

METHOD - SVAH first performed an initial 360 Degree Supply Savings Analysis that provided the necessary "Fuel for the Savings Fires," by listing out all the relevant savings opportunities for the IDN's Value Analysis System. SVAH then provided Strategic Value Analysis, planning, training and hands-on support. e-Value Analysis Software was utilized to further plan, organize, document, guide and monitor the system wide value analysis program.

RESULTS - in less that one year the IDN was able to achieve their savings goals ($7 Million) and complete over 120-value analysis studies in the process.

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Case Study - 400 Bed Community Medical Center Saves $4 Million and Wins GPO National Leadership Award

WHY - 400-bed California not-for-profit community medical center, noticed that its supply, services and technologies cost had been escalating in recent years and wanted to be more proactive in attacking these increases.

GOAL- To develop and sustain a data driven process focused on products, services and technology whereby purchasing and utilization decisions are based on meeting the functional requirements of customers most efficiently. Utilize Strategic Value Analysis's methods to systematically analyze all of the millions of dollars of products services and technologies that they purchase on an annual basis.

METHOD - Adopt SVAH's scientific, customer driven and function-oriented approach known as Strategic Value Analysis. Organize, train document, guide and monitor the four value analysis teams (Steering, Surgical, Med/Surg and Support Services) system wide value analysis program.

RESULTS - in less that 18-Month the medical center was able to exceed their their savings goals and were also recognized by their National GPO as a Supply Chain Best Practice Leader in 2003 with their successful Value Analysis Model.

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Case Study - 153- Bed Community Medical Center in Oklahoma Saves $1 Million in 12-Months

WHY - 153-bed Medical Center in Oklahoma, was searching for a non-salary saving and quality system that was measurable, manageable and customer-centered, yet focused on bottom line results. The Medical Center had recently installed a labor management system, which their CEO was very satisfied with its results. Their CEO now wanted to ratchet down and control his non-salary expenses in the same fashion.

GOAL- Have a proven and reliable management system in place to continuously manage and control their non-salary expenses, without having a time consuming and costly major non-salary cost management initiatives every few years.

METHOD - The SVA starting point was the development of the Medical Center' SVA strategic plan, which was facilitated by SVAH to determine the savings opportunities available to the Medical Center and to appraise the strengths, weaknesses and gaps in their current non-salary strategies and tactics. From this assessment it was estimated that $750,000 to $1 million dollars in savings would be achieved with the Strategic Value Analysis System initiative. Next, a SVA strategic planning session was held with the Medical Center's management team to determine the newly established value team’s policies and procedures, strategies and tactics that would govern their new Strategic Value Analysis Program. This was followed up with three-days advanced value management training for the Medical Center's Value Team Leaders and Team Members conducted by SVAH. At the same time, the Medical Center appointed their director of material management as their Value Management Coordinator (VMC) to manage the many details of the program. The VMC also received extensive train-the-trainer and value analysis coordinator training in all the necessary aspects of managing a value analysis hospital wide system.

RESULTS - in less that 12-Month the medical center was able to reach their savings goal ($1 million) and were also recognized by their National GPO as a Supply Chain Best Practice and were asked by their GPO to present their savings model and results to their peer hospitals a their annual conference.

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Case Study - 4 Hospital Health Network Saves $2.3 Million in First 3-Months

WHY - 4 Hospital & Health Network in Pennsylvania had been “looking for the right solution” to reduce their non salary expenses for some time when SVAH introduced our Strategic Value Analysis™ solutions. After some false starts and lost confidence in other service providers challenged SVAH to assess their four hospital system to determine if there were any non-salary opportunities for their system hidden from their view.

GOAL- The Health Network had a long history of “doing it themselves”, even before SVAH arrived on the scene. This was a good fit with SVAH’s mission of “teaching healthcare organizations (and giving them advanced tools, training, strategies and tactics), so that they can more successfully manage and control their non-salary expenses.”

METHOD - Initially SVAH was engaged to "Find The Savings" utilizing SVAH's low cost-high yield 360 Degree Supply Savings Analysis which SVAH was able to identify over $6 million in in various utilization, inventory and drug areas. Upon validation that "there is significant savings to move dictate a better system," the Health Network then moved implement SVAH's Strategic Value Analysis System and e-Value Analysis Software.

With the green light from the Health Network's executive management, HCP installed our Strategic Value Analysis System. This system is of a sequential nature starting with development of the Health Network’s strategic plan, training of the Health Network's value team leaders, team members and coordinator in SVAH’s value methodology and installing e-Value Analysis™ software to manage the team process. Lastly, HCP provided the Health Network with three months of consulting, coaching and facilitation services to support the Health Network’s value management initiative.

RESULTS - The positive outcome of the Health Network’s value management program was the saving of $2.3 million dollars in non-salary expenses in just three months. The Health Network’s value teams are now on the way to their next milestone — the saving of an additional $3.5 million dollars in 12 to 18 months or less.

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