I just recently viewed two value analysis program presentations given at a national supply chain conference by two seasoned value analysis practitioners. These presentations had nothing in common, except both presented their VA program’s highlights on PowerPoint slides. As was once said, “If you have seen one healthcare value analysis program, you’ve seen one healthcare value analysis program.” Meaning, no two value analysis programs are alike.
Most Value Analysis Programs are Home Grown
Most value analysis programs that we have observed are home grown which ignores 78 years of value analysis philosophy, principles, and practices developed by Larry Miles, the father of value analysis, and then refined by VA practitioners worldwide. That’s why no healthcare value analysis program looks alike or has the same value analysis methodology. For instance, it is rare to find a value analysis team defining the functions (i.e., primary, secondary, and aesthetic, as espoused by Larry Miles), of a product, service, or technology under investigation. Most value analysis teams’ primary interest is to determine if a product, service, or technology has a group purchasing contract. This isn’t value analysis; it is price shopping.
It’s Impossible to Learn Much from Another Value Analysis Program
Every healthcare value analysis program is different in almost every respect. No new product requisition is the same. Therefore, it is impossible to learn much from another value analysis program. Yes, you can learn some tricks of the trade from other value analysis programs, like how to organize your value analysis teams to be clinically integrated. However, these are nuances to help you get organized to save, not defining philosophies, principles, and practices to repeatedly follow to evaluate a new or current product, service, or technology to ensure you are getting the “best value” for your healthcare organization.
What to Do About it
First, you need to research the philosophy, principles, and practices taught by Larry Miles and employed by tens-of-thousands of value analysis practitioners domestically and internationally. You can find all of Larry Milles’ philosophy, principles, and practices in our courses that we teach at our Value Analysis Academy.
The reason I’m suggesting you research Larry Miles’ work is because he provides a repeatable, audible, and trainable value analysis methodology that has passed the test of time. Even the U.S. Government mandates that Larry Miles’ value analysis system be employed within every government department, because it is a uniform methodology that can easily be understood by anyone who has a need to use it to save money and improve quality. Why reinvent the wheel?
This way you can benchmark other organizations who, just like you, are using Larry Miles’ system to see if there are better ways to utilize your value analysis methodology, instead of searching for answers from other healthcare organizations whose value analysis program is much different from yours.