5 Savings Strategies You Need to Know Right Now Value Analysis

After talking to scores of value analysis leaders over the last few years it’s still surprises me that their definition of value analysis is always linked to price, standardization, contract compliance and GPO offerings.

This is like describing an apple as being the same as an orange! They both are in the fruit family, but they have nothing in common except their shape and size. It’s the same with value analysis! VA does have a cost (not price) component in its six-step methodology, but this is the last thing (not the first thing) to be evaluated before deciding on the “best value” options for your hospital. More importantly, VA has nothing to do with price, standardization, contract compliance or GPO offerings.

VA is all about the study of function and the search for lower cost alternatives to meet those identified functions reliably. Its sole purpose is to re-define, re-invent, and reformulate the products, services, and technologies you are buying and their associated processes. Rather than just searching for a better price, VA practitioners should instead be focused on understanding how the commodities that their hospitals are buying are being utilized. Then, and only then, will value analysis practitioners uncover savings beyond price™ and increase their savings yield by 3X, 5X or even 9X over what they are currently saving.

With these facts in mind, isn’t it time we redefine value analysis to mean ONLY those things that relate to a product, service or technologies’ function or utilization, so we can start to refocus our VA efforts on those things that don’t have a price implication at all!

P.S. I have some good news for you! We are releasing today our new Value Analysis Leader Resource Web that will give you all of the resources you have been looking for in one website! Yes, you heard right! We will be giving you ALL of our million dollar savings ideas, tools and educational resources that you need, thus making it possible for you to generate new savings quickly and easily. Just click on to our website at www.valueanalysisweb.com to sign up for a charter subscription (limited to 100 subscribers) to start your savings flowing today!

P.S.S. The best part about the Value Analysis Leader Resource Web's information, resources, tools and training is that it works and it has been proven to work in Hospitals, IDN's and Systems throughout the country!

The inflation rate looks like it will end up about 6.8% this year! Energy alone hit 43.6% last year (and is still out of control), which is what is fueling most of this inflation. So as you can see, inflation is eating away at most of the price savings gains that you have achieved over the last few years. Now, what can you do about it?

Here are 5 savings beyond price™ strategies you need right now to counteract the negative effects of price inflation on your supply chain expenses:

The purchase service spend at most hospitals is equal to or greater then their supply spend, so this is where you need to refocus your cost management efforts in order to rein in theses huge expenditures.

79% of all of your new savings opportunities are hidden in the utilizations of the products, services and technologies you are buying. That’s why you need to look beyond price and start paying attention to your utilization savings that are just waiting to be harvested.

There is still more double digit savings available in your PPIs if you look at the patterns, trends, and the variations in your surgeons’ practices. To put it another way, just have your surgeons actually conform to the medical requirements of their patients. This is something which isn’t happening in most hospitals today.

Bad things happen when inventory levels are too high. Or worse yet, left to your department heads’ discretion. Hundreds of thousand of dollars can be saved when supply chain management controls ALL inventories in a healthcare organization.

Buying by brand name and product number is the fastest way to have a bloated supply budget. A much more scientific and cost-effective way is to actually write functional specifications for what your customers absolutely, positively require. Then bid these requirements out to your GPO, manufacturers or distributors to dramatically reduce your supply chain expenses that now won’t be feature rich or over or under specified.

These 5 savings strategies will propel you in a new direction that will save money, but isn’t affected by current or future inflationary factors. This enables you to continue to significantly reduce your supply chain expenses, while everybody else is just trying to stay afloat in these inflationary times.

For Immediate Release

Contact: R.W. Yokl - 800-220-4271

New Value Analysis Leader Resource Web Gives all the Wherewithal Value Analysis Leaders Have Been Looking for, But Can Never Find!

Think of the “Value Analysis Leader Resource Web” as a giant safe that’s loaded with millions of dollars of savings ideas, tools, and educational resources. Value analysis leaders, their team(s) or committee(s) members simply access our website where they will discover the right clicks on the dial…and presto…the safe opens and all of the supply savings are now theirs.

Skippack, PA March 26, 2008 – Robert T. Yokl, President of Strategic Value Analysis® In Healthcare (SVAH), announced today a new on-line resource for savings ideas, tools, and education called the “Value Analysis Leader Resource Web”. This resource gives all the wherewithal value analysis leaders, their teams and committees have been looking for, in one easy to access on-line resource.

Yokl says, “Think of the “Value Analysis Leader Resource Web” as a giant safe that’s loaded with millions of dollars of savings ideas, tools, and educational resources. Value analysis leaders, team(s) or committee(s) members simply access our website and they will discover the right clicks on the dial…and presto…the safe opens and all of the supply savings are now theirs. That’s what the Value Analysis Leader Resource Web can do for any hospital, system or IDN.”

It’s SVAH’s goal, with every monthly update of Value Analysis Leader Resource Web, to be very aggressive in helping our subscribers find all of the savings that could and should be theirs and not left on the table untouched. With these new money-savings ideas, tools and educational resources that SVAH will give its subscribers every month, it will be as easy as saying 1…2…3. SVAH guarantees that subscribers will be able to instantly transform these ideas into gigantic implementable savings for their healthcare organizations.

“The Value Analysis Leader Resource Web will be offered by SVAH as an annual subscription service”, Yokl states, “but more importantly, we will be updating this resource monthly with new, fresh, not to be found elsewhere, savings ideas”. All interested parties are welcome to visit SVAH’s website at www.strategicva.com/va/ to obtain more information on this offering.

About The Company: Strategic Value Analysis® In Healthcare, (SVAH) Skippack, Pennsylvania, is a software, training and consulting firm specializing in supply chain performance management. SVAH’s mission is to give our clients greater control over their supply chain by providing them with better information, better focus, and better systems so they can make better decisions on their second biggest expenditure.

For More Information Contact:

Robert W. Yokl

Vice President

Strategic Value Analysis® In Healthcare

800-220-4271

ryokl@strategicva.com

www.SavingsBeyondPrice.com

3-Days to Achieve the Highest Level of Supply Savings and Value Analysis Leadership and Performance!