Savings Beyond Price™

Innovative Supply Savings and Quality Solutions That Work

Strategic Value Analysis® in Healthcare

 

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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.

Podcast Healthcare supply consulting

PURCHASE COST IS JUST  

THE TIP OF THE ICEBERG!

Listen to a Special Audio Podcast About:

Purchase Cost Is Just the Tip of the Iceberg 


MP3 File

25% of Your Supply Costs Are Above The Water Line And Can Be Reduced By Price Cutting. While 75% Are Hidden Under The Water Line And Can Only Be Attacked With New Advanced Strategies, Tactics and Techniques You Need To Know About

The honest truth is that “price” savings are quickly disappearing because most healthcare organizations now belong to two group purchasing organizations (GPO) and their compliance is at the highest levels in years. In fact, our own studies show that there is less than .005% left in price savings annually for any hospital, system or IDN in their supply expenses.  In fact, when you factor the 2.6% annual medical commodities inflation rate there is no actual savings to be achieved on price savings.  In effect, you are always fighting a losing battle with price!

"The Strategic Value Analysis System created a supply chain awareness throughout our hospital and got people to start talking about other ways to save money.   In fact, our supply expenses are now under budget for the first time in years."

Bill Baecker, CFO, Clinton Memorial Hospital, Wilmington, Ohio

The Cost Of Change Compounds This Problem

To make matters worst it is even harder to change products, services and technologies today to get a better price because the cost of “switching” vendors is so high. For example, if you wanted to switch your IVs to another vendor you will need to change your solutions, IV pumps, administration sets, bags, compounders and other components that make it very expenses to retrain your nurses. Even changing a routine product like your compression selves can cause mass confusion and actually cost you more money than the change is worth.

 

A Much Better Way Is To Attack Your Utilization Cost

Below The Water Line Where 75% of Your Supply Chain Cost Reside

Utilization or the way you make use of (or misuse, misapply or waste) your products, services and technologies when aligned can quickly generate 3%, 6% or even 9% savings in your supply expenses.  For example, a simple admission form that cost you $1.96 to purchase could have an total utilization cost as high as $245,000 (25:1 ratio).  If this form is misused, misapplied or wasted by your administrative and clinical staff it can be costing you as much 26% ($63,700) more than it needs to be.

We have seen this same misuse, misapplication and waste in every category of purchase from pacemakers to trash can liners that have gone undetected because no one has ownership over them.   Even your material manager can’t be everywhere to manage your utilization misalignments!

Fortunately, SVAH has developed a suite of proven advance strategies, tactics, tools and techniques you should know about to capture these illusive savings.  These include, but not limited to, our 360 Degree Supply Benchmarking Program, Supply Six Sigma™ System, UTILIZER™ Utilization Management software, and Strategic Value Analysis® Program

 

FREE Supply Savings Scorecard 

Could Answer All Of Your Questions

If you have been searching for a new innovative savings solutions – beyond price, then your next step is to complete our “no cost – no obligation” Supply Savings Scorecard to be found at www.strategicvalueanalysis.com or call 800-220-4274 or fax to 610-489-2505.

This scorecard will enable you to know with CERTAINTY where you new savings reside

General Information
Organization Name
Address
City
State
Zip Code

Key Contact Information
Key Contact Name  
Title
Phone Number
Email Address to return results
Worksheet Prepared by

Affiliation Information
Reporting Period   From___   To____
   
GPO Affiliation
   
System Affiliation
   
Facility Type (check all that apply)
Community
University
Teaching (Have Residents)
Trauma Center
Urban
Rural
State or County Owned

Services (check all that apply)
Bariatric
Dialysis
Infusion Chemo Therapy
Oncology
Invasive Cardiology
Invasive Interventional Cardiology
Open Heart Surgery
Organ Transplant
Neonatal ICU
Obstetrics
Pediatric Services
Orthopedic Surgery - Joint Replace.
Orthopedic Surgery - Spinal
Psych/Substance Abuse
Neurosurgery
PACS Digital Imaging System
PACS Digital Mammography Sys.
Other (Please specify)
Contract Services (check all that apply)
Biomedical Engineering
Food Service
Housekeeping-Environmental Svcs
Laboratory
Laundry Services
Pharmacy
   

Census Information
Beds, Licensed  
Beds, Occupied  
  - Number of Occupied Psych Beds  
  - Number of Occupied Long Term    Care Beds  

Case Mix Indexes
Case, Mix Index - Medicare  
Case, Mix Index - Overall  

Operating Statistics
Patient Days  
Adjusted Patient Days  
Adjusted Discharges  
Surgical Services Cases  
Laboratory Tests (billable)  
Radiology/Imaging Procedures  

Financial Information
Net Patient Revenues $
Operating Expenses $
Supply Expenses $
Purchased Services Expenses (i.e., insurances, equipment maintenance contracts, rentals, dues, subscriptions, leases,  professional services contracts, outsourcing contracts, advertising, temporary help, accounting fees, snow & trash removal, telecommunications, consultants, etc.) $

Departmental Supply Expenses
Surgical Services Supply Expenses $
Laboratory Supply Expenses $
Radiology/Imaging Supply Expenses $
Pharmacy Supply Expense (including drugs) $

Comments
Comments
After Survey is completed

                                                                                      

 

If you should have any questions please contact Robert W. Yokl ryokl@strategicvalueanalysis.com 1-800-220-4271
    
 

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