The Evolution of Value Analysis
As we continue the shift from volume to value, the healthcare industry leans more heavily on lower costs and higher patient quality care than ever before. The rise of value analysis committees runs in parallel with attempts to cut costs and improve the quality of new medical supplies simultaneously. However, one of the major pain points that we consistently find at GreenLight Medical is the necessity to eradicate supply utilization misalignments within the challenges of organizing the value analysis process. How can this be fixed? The need for better transparency is clearly common throughout healthcare and value analysis committees. Yet, the lack of tools and collaboration among all key stakeholders has a detrimental effect on any cost containment success and value justifications.
While hospitals are plagued by uncontrolled spend and analysis paralysis, there are ample opportunities to reduce these rising problems by implementing and standardizing a collective and efficient value analysis process. Collaboration is key to any process success. By segmenting management into teams, hospitals have a better understanding of which departments are increasing supply costs and receiving more product requests. This will create better tracking across all departments as hospitals are better able to pinpoint certain inefficiencies and take action immediately. In a majority of hospitals and health systems, 80% or more of the supply costs arise from 6 departments, which indicates that hospitals should focus their value analysis on these areas to maximize impact. By having this data readily available to all key stakeholders, the value analysis committee can promote greater accountability and efficiency, ultimately lowering costs and improving the bottom line. In addition, having essential new product information available to decision makers in a timely manner is important to avoid repetitive and inconclusive product evaluation efforts. Previously, we’ve seen hospitals use tools such as Microsoft SharePoint or shared folders to allow for information sharing across departments. However, we find that these remedies fail to simplify workflow and communication, especially in regards to each stage of product evaluation and approval.
The last step in centralizing the value analysis process is physician engagement. Physicians want their PPI’s, supply chain managers want their costs reduced. This expanding rift between physicians and supply chain management needs to be mended in order to achieve value analysis best practice. Physicians collaboration and participation in the value analysis committee is considered by many as the fundamental reason for value analysis committee success or failure. By building better relationships, value analysis committees avoid inertia and offer both sides a different perspective of the goals they’re trying to achieve. By leveraging the insights and experiences of others, value analysis teams can successfully drive innovation in cost management. Our team at GreenLight Medical bridges the gap through our seamless portal that standardizes the introduction, evaluation, and collaborative decision-making needed for new medical technology purchase.
Recently, implementing GreenLight Medical’s software has become a powerful method to improve the value analysis process through enhanced organization, transparency, and ease of collaboration. Our software standardizes the intake of all new product requests, which are digitally organized and downloadable, in one sharable place. Concurrently, we deliver a comprehensive business case analysis including clinical, quality, cost, and outcomes data. All of this allows GreenLight to provide real-time insight and the actionable data you need to enable outcomes-based decisions.