Strategic Value Analysis in Healthcare

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Total Hospital Supply Chain Cost/Expense Management Software and Service Solutions Guaranteed to Give You 7% to 15% Savings Results from Total Budget Beyond Contracting, Standardization and Price Saving


Did You Know...?

That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.



If You Want to be Left Standing When the Winds of Change Hit Your Healthcare Organization You Need to Master Change…NOW!


Isn’t it time for you to Re-invent and Re-tool what your’re doing with your own Strategic Supply Chain Operations Plan (SSCOP) so you can master change -- Forevermore?

Material management (or supply chain management as it is now called) has been red hot for 27 years now in healthcare, yet very few healthcare organizations have taken the time to develop a Strategic Supply Chain Operations Plan (SSCOP) to fine tune their multi-million dollar business operations.  Few healthcare organizations ever take the time to refresh their SSCOP’s plan to compensate for the winds of change that take place yearly and will affect their healthcare organization.

Winds Of Change: One big change that is right around the corner is the new Medicare reimbursement regulations that go into effect in October and that will surely cost your hospital, system or IDN hundreds of thousands of dollars, or in many cases millions of dollars in lost revenues and will also drastically affect your bottom line.

Master Change: We in supply chain management always seem to be herky--jerky when it comes to strategic operational planning, when planning is the little known secret you desperately need to stay on top of your game.  By looking at where you have been, where you are now and where you want (or need) to be in 1, 2, 3 or 5 years with you supply chain management program, you can manage these unpredictable winds of change more effectively.

Anticipate Change: This is the case with one of our clients whose management is telling him he needs to do more with less. He has responded to this challenge by developing a Supply Chain Operations Plan, with our assistance that includes re-inventing and re-tooling his purchasing operations and supply value analysis program to be leaner, meaner and more productive.  At the same time our client is proactively increasing his supply saving yield by 11.4 times over the next few years. 

If you want to be left standing when the winds of change hit your healthcare organization, you need to master change by anticipating change with your own Strategic Supply Chain Operations Plan that will keep you afloat in good times and bad.


"Nothing is More Terrible Than Activity Without Insight"

 Thomas Carlyle

The term "strategic planning" is not a new term in management's lexicon.  It is derived from military usage and the need for on-going assessment and self-appraisal of an organization's strengths and weaknesses.  It's a systematic and defined planning process leading ultimately to the appropriate strategies and tactics necessary to enable an organization to adapt to change in an ever changing marketplace.  The end result of such a planning process is a clear vision for management of where it should focus its energies and resources in the short, intermediate and long term to meet their stated vision, mission and objectives.


“(I was impressed with Strategic Supply Savings Analysis™ because of its) thoroughness and detailed (reporting). (It) gave (me) some good ideas for concentration and implementation (of the savings identified)."

Jim Jurgitis, Director of Material Management, United Hospital System, Kanosha, Wisconsin


SSCOP Is Similar To A Strategic Long-Range Plan

A Strategic Supply Chain Operational Plan has many similarities to the strategic long-range planning process in that it is a systematic and defined planning process.  This plan will, enable a healthcare organization to appraise the strengths and weaknesses or GAPS in its Supply Chain Management Program. It will devise new strategies and tactics for reducing and controlling their supply related expenses by employing the value methodology.  It begins with defining their vision, mission and objectives for their new or refined Supply Chain Management Program, in terms of what their aspirations are:

·      Being one, two and five years out

·      What savings and quality goals are real and achievable

·      What policies and procedures are required to align them with their new or reinvented Supply Chain Management Program

·      What steps are needed to develop strategies and tactics that will be creative enough to meet the challenges of this new or refined program

·       What problems or hurdles can be anticipated that would threaten the success of a new or refined Supply Chain Management Program, and where do we get started?

A Mission Critical Planning Process

This mission critical planning process, which will be facilitated by Strategic Value Analysis® In Healthcare (SVAH), will position your hospital, system or IDN’s new or refined Supply Chain Management Program to be successful, as opposed to just letting it happen in an unplanned and disorganized manner.  When developed properly, it will provide you with a blueprint for your Supply Chain Management Program and give you a plan to follow over the next few years, thereby, increasing your probability of success.

Thank you for the wealth of information provided by your Fast Target Savings Assessment. The benchmarking information is priceless. It will give our Value Analysis Team detailed information to work with for many months to come. The fact that you provide benchmark data for Consorta contracts, as well as your own national database doubles the value of either of them viewed separately.

Knowing that our supply utilization is greater than many of our peers will hopefully provide the incentive needed to start managers looking at not only what we pay for supplies, but also and more importantly how we're using them.  Should we be using them at all? Could another product do the job as effectively, but for lower cost?   The Assessment will be the stimulus for many hours of discussion.

Tim Folk , Director Materials Management, St Joseph's Medical Center,
Brainerd, MN

16 Distinct SSCOP Advantages You Need To Know About

By creating a SSCOP you will bring 16 distinct and powerful advantages to your healthcare organization:

ü     Enable you to influence the future of your supply chain operations by anticipating the winds of change then preparing for them.

ü     Provide a new and powerful vision to break through the barriers that have been holding back “big” savings for you.

ü     Focus on the important things (time, talent, money and materials) so that they are properly allocated and aligned to those activities that provide the most benefits.

ü     Provide awareness to your management of the changing healthcare environment as a foundation for needed change in your supply chain operations.

ü     Provide analyze your supply chain internal operations and evaluate their impact on your current performance.

ü     Recognize the impact the changing healthcare environment is having on your hospital, system or IDN that will affect the need for a change in strategic direction.

ü      Provide awareness of your supply chain’s potential in light of its strengths and weaknesses.

ü      Identify and analyze available opportunities and potential threats

ü      Bring up strategic issues for your top management review.

ü     Make possible for you to set more realistic goals and objectives that are demanding, yet attainable

ü     Provide more and better information for decision making

ü     Identify areas of poor performance that can eliminated.

ü     Gain control over all of your current operational challenges.

ü     Develop better communications with your management team.

ü     Provide a road map to show where your supply chain operation is going and how you are going to get there.

ü     Develop a frame of reference for budgets and short and long range financial planning

Beyond these 16 distinct advantages that I have listed above a SSCOP will put greater supply chain control in your hands because through the SSCOP process you will have better information, better focus for better decision making and control.

“You and your staff exhibited a high degree of professionalism in presenting recommendations to our staff in a very positive and effective manner. (And) your consulting staff worked very well in developing a teamwork environment…”

John E. Markle, Vice President Administration Community Medical Center, Toms River, NJ

It All Starts With A SWOT Analysis To Create Your Supply Chain Of The Future!

To prepare your Strategic Supply Chain Operational Plan SVAH will conduct a SWOT (strengths, weaknesses, opportunities and threats) Analysis of your supply chain management’s current state (political, cultural, operational, attitudinal and transformational), which shall include the following categories:




Identify current state and devise future state of supply chain management mission


Identify current state and devise future state of supply chain management vision


Identify current state and devise future state of supply  management values


Identify current objectives and devise new objectives for supply chain management


Document successes to date and devise new outcomes for supply chain management


Quantify current supply chain management measures and devise or refine measurement tools


Determine current supply chain management baselines and devise or refine baseline measurements


Finalize supply chain expense management savings targets based on Supply Chain Performance Assessment

Strategies & Tactics

Understand current supply chain cost management strategies and tactics and revise, or devise new strategies and tactics that are performance focused


Prioritize tasks and activities for the deployment of new supply chain management initiative

Evaluation System

Identify current evaluation system and refine, revise or devise new system to integrate with new supply chain management program

Based on our findings and recommendations of your SWOT Analysis, SVAH will facilitate planning workshops with your supply chain management and executive management team to develop and finalize your SSCOP.

“I especially like the hands-on nature of SVAH’s consultants which was a key ingredient in changing our culture.”

David Hoff, President/CEO, Wayne Memorial Hospital, Homesdale, PA

3%, 6% or Even 9% Supply Savings And Dramatic Operational Improvements in Less Than 9 Weeks

It has been our SSCOP client’s experience to save a minimum of 3%, 6%, or even 9% on their supply spend and to dramatically improve their operations by building their own customized supply chain of the future utilizing the SSCOP’s methodology.

More importantly, our clients have seen their management team connected to this SSCOP planning process which enabled them to have their new strategies, tactics and ideas heard (without a filter), evaluated and quickly approved.

The end result of our SSCOP process for hospitals, systems and IDNs just like yours has been the development of a defined plan with a new and powerful vision to break through the barriers that have been holding back “big” savings for you.


To Learn More About How a SSCOP can dramatically improve your organizations Can Re-invent Your Supply Savings Program by filling out the attached information request form.

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