“The key to most organizations moving into Advanced Value Analysis (AVA) strategies like Clinical Supply Utilization Management (CSUM) is to gain the buy-in of your Senior Leadership and key department heads and managers.”
Advanced Value Analysis Strategies
Twenty years ago, Value Analysis was thought of as a nuisance to the healthcare supply chain who just wanted to implement their contracts and the lowest cost products which they felt were the best value. It is almost unbelievable to look back and realize how Value Analysis was thought of in our industry. Fast forward and it is impossible to believe an organization could operate and handle all the contracting, new products, and recalls without it. This just goes to show how far we have come with our thinking and Value Analysis altogether. But there is so much more that Value Analysis can do that is even more advanced, like Clinical Supply Utilization Management (CSUM). Once again, we are at a crossroads where we must gain the trust of our senior leaders and Supply Chain Directors that this is the right direction to go to continue to move the needle with major savings and quality improvements.
Saves Money and Makes Sense
The key to most organizations moving into Advanced Value Analysis (AVA) strategies like CSUM is to gain the buy-in of your Senior Leadership and key department heads and managers. Without their buy-in, you’re not going anywhere with any program. The good news is that the strategies and outcomes are sound with CSUM and budget friendly. That is because CSUM employs evidence-based key performance indicators, benchmarks, accounting principles like activity-based costing, as well as the value analysis team-based functional approach to drive out savings while maintaining/improving quality. CSUM is a rock-solid next AVA step that saves money and makes sense.
1. Start with a Well-Defined Plan and Vision – If you want a successful program, you must have a plan and vision. No organization is the same and that goes for your organization which will require a customized plan that takes into consideration how you do business now and how you will do business incorporating CSUM and Advanced VA. Remember, this is not something that we can just discuss like a product or service and click our fingers and succeed. You must have a plan that outlines all the key elements and most importantly the goals/objectives as well as the who, what, where, when, why, and how.
2. Find Your Champions – This may sound like a no brainer, but you may find that your Supply Chain Director, CFO, CNO, or whoever you report to may not be ready or even want to engage in AVA/CSUM when you choose to. That does not mean that you cannot find other Champions to start educating and enlisting to assist you in your due diligence towards planning out your CSUM/AVA next steps. Remember, you must gain the buy-in first of the Champions before you ever think you will do the same for your Senior Leadership.
3. Recruit an Expert – AVA/CSUM is not as straightforward as you may think, so it is good to enlist a coach/expert to assist you in working through all the hoops that you need to jump through to be successful. We actually do this all the time in our pre-planning for organizations who are looking to take the next step with AVA/CSUM. Some organizations are more ready and can move ahead in 30-90 days and others take 1, 2, or even 3 years to develop their programs. The most important thing to remember is that you don’t want to be a Lone Ranger with a new program that you know rudimentary aspects of but not all the ins and outs. It is better to get a coach that can easily guide you through than to take a hit on a missed element that could stall your program for months or even years.
Advanced Value Analysis/Clinical Supply Utilization Management Will Uncover New Savings
If you accomplish these, you will be well on your path to taking your organization to the next level of major supply chain savings that you will not be able to get anywhere else. It won’t come from contracting or GPO contracts because those are all price based. AVA/CSUM is an unstoppable tandem that will uncover savings that will be virtually untouched because no one has implemented these types of programs before at your organization, just like VA in the old days compared to now.
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