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  Click Here to Access the NO Obligation Free Non-Salary Survey to find out what your savings opportunities are for your organization.

November 13, 2003         

5 Mission Critical Value Analysis Elements That Move You To The Next Level Of Non-Salary Savings Performance

by Robert T. Yokl, President

“Most Health Care Organizations Are “WINGING IT” With Their Value Analysis Programs And Are Therefore Missing HUGE Savings Opportunities”

(Part 1 of 6)

It should be a mission critical goal of every healthcare organization to develop a RELIABLE, PREDICTABLE, CONSISTENT, EFFICIENT and AUDITABLE non-salary cost management SYSTEM. This system will provide in good times and bad ABUNDANT AND QUANTIFIABLE non-salary savings to meet their profitability objectives in any given year.

Unfortunately, meeting this goal is a rare occurrence at our nations’ healthcare organizations today. HCP’s informal surveys (figure 1) have shown that 53% of our nation’s healthcare organizations have NO value analysis program whatsoever and a WHOPPING 31% have NO PROGRAM OF ANY KIND to manage and control their non-salary expenses.

Figure 1: Percentage & Categories of Non-Salary Programs In Healthcare Today

The fact of the matter is that MOST healthcare organizations don’t have value analysis programs and if they do they are “Winging It” (improvising, experimenting, making do, ad-libbing or noodling around). They are, therefore, missing HUGE savings opportunities in the range of 6% to 9% for their healthcare organization, because they don’t have a value analysis SYSTEM! 

A SYSTEM by definition is a combination of related elements organized into a complex whole to provide a desired outcome. From HCP’s empirical experience there are FIVE mission critical elements necessary to develop a RELIABLE, PREDICTABLE, CONSISTENT, EFFICIENT and AUDITABLE value analysis SYSTEM (figure 2). It starts off with being Strategic Planning

Figure 2: Value Analysis Mission Critical Elements

driven, Team-Based, Value-Based, Customer Centric and ends by being Technology Driven.  These five mission critical elements, when combined into a complex whole, will provide your healthcare organization in GOOD TIMES AND BAD with abundant and quantifiable non-salary savings to meet your healthcare organization’s profitability goals year in and year out.

Over the next five weeks, I will share with you the what, when and why of these FIVE MISSION CRITICAL ELEMENTS so that you can: (i) plan to start-up your own value analysis program vs. doing nothing!, or (ii) move from a products evaluation savings model to value analysis savings model or, (iii) reinvent your current value analysis or ad-hoc program into a SAVINGS SYSTEM, thereby, MOVING TO THE NEXT LEVEL OF NON-SALARY SAVINGS PERFORMANCE for you healthcare organization!  Stay tuned -- there are more exciting ideas for you to move toward over the next few weeks… 

Click Here to Access the NO Obligation Free Non-Salary Survey to find out what your savings opportunities are for your organization.

About the Author

Robert T. Yokl, President, The HCP Group, Ltd., has over 35 years of experience as a consultant and manager in the field of Supply Value Chain Management and is one of the country's leading healthcare experts in value analysis, value engineering, Non Salary Expense Reduction and materials management. He is the developer and program leader of the award winning Certified Value Analysis Practitioner Training Program™. Mr. Yokl is also the developer of the healthcare industry's leading ValueNetCentral™ Value Analysis Software. Over the past two decades he has trained thousands of healthcare managers in his patented Strategic Value Analysis™ and Team-Based Project Management™ processes and has assisted scores of organizations in developing their own value management programs. He has published six books, videos and audios on supply/value chain management. His latest book being, “ Strategic Value Analysis™: The #1 Smart Strategy for Taking Cost Out of a Healthcare Organizations’ Healthcare Supply Value Chain”.

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