What is measured, happens! There’s a tremendous amount of activity taking place within Value Analysis (VA) programs across health systems nationwide, but how much of that work is actually captured in a way that delivers meaningful insights for you and your leadership? While tracking everything can feel overwhelming, the reality is you don’t need to measure every detail, just the metrics that truly matter. This article outlines key areas you should be tracking and why they are essential for both your VA program and the leaders responsible for overseeing it.
Number of New Product Requests by Type
A significant portion of VA work revolves around new product requests (NPRs), making it critical to monitor them closely. While this may seem basic, it reflects the core of your team’s daily efforts and meeting discussions. Go beyond simple counts — break these requests down by categories such as team, VA coordinator, fiscal year, and other meaningful segments to gain deeper insight into trends and workload distribution.
Savings Tracking
Tracking savings is foundational to any VA program. It’s important to capture all sources of savings, including those from new product requests, contract conversions, increased rebates, and retrospective value analysis initiatives. If your program generates savings in any form, it should be documented and measured consistently.
Tracking Cost Increases
Although it may feel counterintuitive, tracking cost increases is just as important as tracking savings. Whether increases stem from new product requests, upgraded product features, contract changes, or recalls, maintaining visibility into these costs provides a more complete financial picture. Even if it may seem unfavorable, understanding where and why costs rise is essential for transparency and informed decision-making.
Revenue Associated with New Product Requests
While many new products introduce higher costs, some also generate revenue that offsets or exceeds those expenses. It’s important to distinguish between products that contribute to revenue and those that do not. This distinction allows for more accurate evaluation of overall financial impact and supports better decision-making.
Net Cost Impact
When you are tracking savings, increases, and revenue, the next logical step is to evaluate the net effect. This comprehensive view — essentially savings minus increases, with revenue considered — provides a clear and concise metric that resonates strongly with executive leadership, especially CFOs. It demonstrates a balanced and strategic approach to cost management.
Utilization and Consumption Management
VA is often viewed as a key driver of cost management, but identifying where to focus requires the right data. Utilization and consumption analysis helps pinpoint areas of opportunity by evaluating product use relative to patient volume, rather than just spend. This approach offers a more accurate, patient-centered view of performance and highlights both inefficiencies and opportunities that may otherwise go unnoticed. In many ways, it allows savings opportunities to surface organically.
Implementing more advanced tracking within your VA program may initially seem like added effort, but it ultimately becomes a significant strategic advantage. Many health systems do not yet operate at this level of insight, and by doing so, you position your program — and your organization — with greater clarity, confidence, and control over outcomes.
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