Strategic Value Analysis In Healthcare

I just got done listening to the first part of the four part AHRMM Value Analysis Tele-Conference, what an outstanding presentation! I will also be a presenter/speaker on Part III of the program (August), as well as a member of the expert mastermind panel in Part IV of the program.

This is a great program and I hope all of you take advantage of this opportunity to get a firm grounding in the concepts of value analysis. Plus you get to learn from three different experts and get our unique and different perspectives on the art and science of value analysis in healthcare. Please support AHRMM!

I am happy that AHRMM is stepping up to the plate with this ground breaking program and in my opinion we need a lot more like it. Here’s why!

As you may or may not know, our programs are very much about planning, education and training as the keys to a successful value analysis program. I may sound crazy but I believe that healthcare organization’s need to invest heavily in value analysis training and education for anyone who purchases and controls a supply budget inside your healthcare organization.

I see many client organization’s implementing quality based initiatives such as Six Sigma, CQI, Lean Management and alike on an organization-wide effort to improve quality and better outcomes for their patients. Why not train everyone who buys and/or has a supply budget responsibility in the art and science of value analysis?

Who really spends the money in healthcare organizations? Most would think the supply chain department (NO-they are the chief sourcing agents)—the real spenders are the department heads and manager who hold the line supply budget responsibilities (they specify the products they need purchased).

When you think about all the complexities of the healthcare supply chain world in any organization, you realize that we are dealing with over 15,000 products, services and technologies and millions of dollars in purchases that must be systematically analyzed to produce supply chain savings and better outcomes for our patients.

My challenge to all of you for the remainder of this year (Happy Fourth by the way!) is to get as much value analysis training under your belt as possible. And start to plan and implement how you are going to train your department heads and managers (and senior management too!) in value analysis strategies and techniques. Education is the key to value analysis success!

Your Partner in Supply Chain Savings,

P.S. If you are looking for a way to fast track your value analysis education, methodologies and tool box, you may want to take a look at the Value Analysis Insider Newsletter and over $2500 in special bonus materials, tools and training!

How Incentives For Your Employees Will Mean More Savings For You And More Cash, Fun And Rewards For Them.

“Saving Money Is The Art Of Finding Out What’s In It For Your Customers, Stakeholders And Experts”

Hospitals are “risk adverse” organizations by their non-profit nature, but their employees on the other hand are really gamblers when you look at how many play the lottery, go to casinos and play “Texas holdem” poker just for the fun of it.

My point here is that you need to use this quirk of human nature to your advantage in your supply value analysis programs. Researchers have found that having fun with games at work improve your chances of motivating your employees to save money and improve quality by reinforcing their positive behaviors. This positive behavior occurs since games give your employees instant and relevant rewards and recognition. It’s all based on the premise that “people like to gamble” – and they do!

For example, there is a new game called “Snowfly” that works like a slot machine that enables employees to win tokens (or points) that they wager to win prizes for saving money, improving productivity, cutting inventory or meeting specific business goals per week, month or quarter.

Now how could this work at your healthcare organization? As I see it, you could give 5 points (worth $1 dollar) every time an employee gave a suggestion for saving money or improving quality to your value team. 500 points would be won if the idea is adopted by your team and 500 additional points would be given to the employee if the idea is implemented. The project manager for the project would also receive 500 points when the project is successfully implemented. All participants could then redeem their points for prizes (you need a catalog of prizes that each employee can dream about for this to work) when they have enough points to buy that perfect prize for them or their family.

It’s all about your employees loving to gamble. Gamble that their idea will be adopted, gamble that it will be implemented and gamble that they can win that big prize they have their eye on but don’t have the money to buy for themselves.