April
15, 2003
Value Analysis Is A Discipline, But You Wouldn’t Know It By The Current
Practices In Healthcare Today!
“Without A Unique Subject Matter As Well As A (Proven)
Methodology, There Is No Discipline (, But Only Activities)”
Spindler and Spindler
A discipline is a universally accepted system of instructions, rules,
regulations and learning that together form a defined body of knowledge
that is religiously adhered to and adopted by its practitioners. As
Alexander Massey tells us, “…while the strength of (a) discipline must
depend partly on its flexibility and openness to diverse way of working,
there must be some common threads – technical and philosophical – which
enable us to say, yes, we all belong (to this discipline).” This is not
the high standard whereby healthcare organizations are measuring their
value analysis programs in the U.S. today, even though this tried and true
system is universally accepted as a discipline in all other industries.
The Value Analysis Discipline: What It Isn’t!
As opposed to the conventional wisdom, value analysis isn’t a committee of
20+ members meeting to review and approve group purchasing contracts.
It’s not negotiating, bidding or doing something else to reduce a
supplier’s costs. Nor is it standardization, new product, service,
technology conversions or introductions or approving new product, service
or technology requests. Value analysis isn’t any of these things that most
healthcare organizations call value analysis.
What Value Analysis is is a powerful savings tool that, if not practiced
scientifically or NOT PRACTICED AT ALL, will generate only meager
savings. Conversely, if the right people have the right tools, training
and a proven value analysis system, and if value practitioners are
deployed by a healthcare organization to look at the right things, then
millions of dollars can be saved for your healthcare organization
annually.
Moving To The Next Level Of Savings With Value Analysis
HCP’s studies show that only 1 in 10 healthcare organizations are really
practicing and applying the classic tenets of value analysis, thereby
missing the opportunity to slash 5% to 15% off of their non-salary/supply
chain expenses annually. This is because they think they are practicing
value analysis, but they are really doing something else, such as,
bidding, comparison-shopping, group purchasing or negotiations.
Now that “the ripe fruit” has been picked in healthcare organizations
through group purchasing, re-negotiation of contracts, standardization and
prime vendor contracts, thereby obtaining the lowest price for the
commodities you purchase, now is the time to drive out all of the hidden
costs in your products, services and technologies by having value analysis
become a true discipline at your healthcare organization.
