New product requests (NPRs) are a normal part of any value analysis program’s way of doing business. Things only seem to be getting more complex as organizations handle even more of these NPRs every year. Let’s face it though, the majority of these new product requests end up costing our health systems more money so we must add in more scrutiny into our value analysis process to ensure that no money is left on the table.
Below is a list of questions that every value analysis team should be asking in 2025 and beyond to ensure that all bases are covered with costs and quality.
Questions to Ask When Analyzing New Product Requests
1. Do You Even Need It at All? This question could really liven up your value analysis team meetings as it is contrary to what most VA teams focus on which is to jump right into evaluating and analyzing the NPR at hand. This is not to say that the product that is being requested will not make the cut, but the first question should always be, why do we need this now?
2. Does It Meet Your Customers’ Functional Requirements? First and foremost, this is what we are really trying to ascertain with any value analysis study because all else does not matter if the product cannot meet the end function reliably in the eyes of the customer. It does not matter if the vendor is offering a major discount or added features that you don’t have now. You must know the required function(s) and first validate that.
3. Is it Contract Friendly? End customers and stakeholders do not like to hear that this product is not contract formulary friendly and thus will throw off costs, rebates, or other contract related aspects of your supply chain. I get it, they want what they want and just want Supply Chain to procure it for them. If this happens to you often, then you need to educate your customers about the fact that there is a structure in place that has been built and must be maintained.
4. What Are the Alternatives to the Product Being Requested? If a Surgeon requests a specific instrument or implant to be approved by a VA team, the last thing they want to have happen is for the VA team to come back with an alternative for them. But you want to truly perform value analysis correctly, which is the study of a product’s function in the eyes of the customer. If a true functional alternative is available at an equal or lower cost with the same reliability and quality as the product being requested, it too should be considered and brought to the end customers’ attention. Yes, they may get a bit upset but at this point you are just running it by them and making them aware of other possibilities. Worst case scenario is that they only want what they want (most do) but there are those occasions where the alternative is acceptable, and the health system saves big, and the Surgeon gets their new instrument/implant.
5. Who Else is Using This Product in Our State or Region? This is a more important question than you think because who really wants to be one of the first ones to use a product in a region or state or even the entire country? Leave that to other organizations to be the path finder on those products. All else need good references in our state or region to possibly call on to find out their experience with this product.
6. Why Not Give the References a Call/Email on this NPR? It always amazes me that VA teams do not ask for reference details of their peer organizations when they ask for who is using the product in their region or state. Or if they do ask for references, they do not contact them. You could save a lot of time if you pick up the phone or email the reference that the sales rep gave you to find out everything you want to know. I know it is difficult to get references in these busy times but in many cases, you should make this part of your VA process. There is nothing better than hearing the true results from a true user of a product.
7. What’s the True Return on Investment? There is more to looking at the costs of the product and validating that there is in fact reimbursement for the new product being requested. There is the overhead cost of the case, turnaround times, central sterile, etc. Just because the reimbursement may cover the $7,755 cost of the implant does not mean that it can cover the entire cost of the case altogether. Plus, there are many varying reimbursements between Medicare, Medicaid, and the private payers. You need to hone in on these numbers before you make a final decision.
8. Have You Checked the FDA MAUDE Search? The FDA MAUDE database contains the reported adverse events from the cases of medical devices used by surgeons and clinicians in healthcare. These give thorough details as to exactly what happened during the case and the outcome of the product. If you are performing a value analysis review on this, you should consult the FDA MAUDE database and know the results. Just the other week we saw over 300 adverse events with an implant that was being proposed as a new product request at a community hospital. When they found out how many events were reported in just 12 months, they quickly declined to evaluate this any further.
Go Into Detail with New Product Requests
For those of you who are already asking these questions, my hat is off to you, but you are an exception to the rule as most health systems do not get to this level of detail. The good news is that you can easily start incorporating these questions into your value analysis studies and instantly make your value analysis program better and more effective. Go ahead, make your program better today!
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