Value Analysis Teams Q & A's
How Do You "Sell" The Concept of Value Analysis Internally?
Supply Chain Initiative MUST become a top priority of senior leadership
You MUST have Internal Champions
You MUST involve Physicians up front
You MUST have a fully-dedicated Value Analysis project manager
You MUST seek out & obtain adequate resources (time & money) to get the job done correctly (NOTE: Something about spending $ to save $)
You MUST use your External & Internal Consultants (i.e.,
, Internal Auditors, Resource Team Members, etc.)
You can tie annual Performance Evaluations to the success (or lack thereof) of Chairs and/or specific Members of the individual Value Analysis Teams
The Value Analysis process can identify proven results obtained at other organizations
It just makes sense!
How Can You Typically Get the Docs to "Play"?
Get (and keep) key physician champions
Go out to the MDs: One - on - One
Communice, Communicate, Communicate
Show them the $; Show them the data
Make 'em think like the decision to switch products to save Big Bucks was their idea!
Involve them in the data; identify the mutual benefits for themselves & the Hospital
Use whatever works best; tailor specific products or services to the specific physician or Physician's Group
Have early morning meetings; meet the Docs on their own turf
Identify & pursue incentives for the Docs, just make sure they're legal
p.s. - The old concept of "Feed the Docs if you want them to come to a meeting" is so very-1980's, reflects immature thinking & just doesn't apply anymore
I know that once Value Analysis Teams are established, some staff will find a million ways to get around the Process.
What ways & methods have you seen staff use to bypass Value Analysis?
Avoiding attending any Value Analysis meetings and therefore, pleading dumb on product usage or standardization issues discussed at last month's meeting
Trying to save $ by not renewing a service or maintenance contract - becoming selectively self-insured when not called for or the effort is not coordinated
Delaying a planned purchase or the utilization of some supplies in a valiant effort to "save money"
Pretending like nothing has changed: Using the Hospital's local vendor charge card indiscriminately, booking First Class tickets for that upcoming Seminar, etc.
Borrowing supplies from other user areas
Bundling consumables into the cost of capital equipment, thereby confusing what each of the 2 components actually costs
Hitting up Sales Reps for more sample products
Increasing your commitment of consignment products, thereby decreasing your up-front expense but potentially increasing your usage costs over time
We recognize that there are quite a few questions which you need to answer for yourselves as soon as you get your Value Analysis Teams organized.
Some of these questions are:
How will we handle new Technology or products which either:
Cost more, but lower the patient's length of stay (i.e., silver-tipped urinary catheters)?
Cost less, but increase a patient's length of stay (i.e., poor quality plastic bedpans, the seam of which caused a cut on a user patient)?
How will you handle select Medical Staff members and/or heavy admitters or High Roller Surgeons who have strong product/Sales Representative preferences?
How will you handle Emergency requests & how will they bypass the process (if at all)?
How will you handle Time-sensitive decisions (i.e., "If this product contract isn't signed by this afternoon, your pricing reverts to list price")?
How will you handle individual Hospital-specific decisions which run contrary to the Corporate directions of the System (i.e., outliers)?
How will you involve all Hospital staff?
How can you provide legal incentives to all levels in the organization?
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