I have been using the term value analytics as shorthand for value analysis analytics for some time now, but I was reminded recently by our Vice President of Operations that value analytics is really all about value analysis. So why was I still calling what we do value analytics?
It was such a good question that I thought I would talk about the origin of the term value (analysis) analytics to set the record straight and to take a pledge today not to use the term value analytics any longer, since I can now see it is a misnomer.
Seventeen years ago we were hunting for value analysis opportunities for our clients when we realized there must be an easier, better, and faster way. Just as important, we needed a full-proof system that our clients could employ themselves to uncover all of their value analysis savings opportunities for both supplies and purchased services, as well as generate savings yields that were much higher than previously obtained.
That’s when we implemented the use of the Activity-Based Costing Model (i.e. every product, service, technology or activity has a conforming and non-conforming total cost that can be measured, monitored, and controlled) to root out all waste, inefficiencies, and value-mismatches in a healthcare organization’s supply streams.
By further enhancing the Activity-Based Costing Model with our own methodologies and technologies, we have found that any and all value analysis opportunities in a healthcare organization can be quickly and easily uncovered and tightly controlled over time.
Why was I using the term value analytics? I thought it was an attractive label to describe what we do, but I now realize that the term was inaccurate. However, I’m not mistaken when I tell you that the key to long-term success with your value analysis program is the employment of value analysis analytics to guide you and your VA teams to savings success.
Why take the hilly, bumpy, and less traveled road, when you can take the smooth, even, and well-traveled road to value analysis success?