Most healthcare organizations measure their value analysis team’s success in dollars and cents. Meaning, how much they are saving year-to-year. However, this isn’t the only criteria for success that you should be measuring. Below are four companion measurements that can dramatically improve your hospital’s value analysis team’s performance:
- Projects Completed: This is a number that often differs from your agenda of items being reviewed, since they drop off your project schedule for various reasons (e.g., inertia, neglect, rejection, or omission), which needs to be tracked to ensure the integrity of your value analysis process.
- Time to Complete: This is critical to the speed, agility, and timeliness of your value analysis program. If it is taking your team members more than 90 days to complete their projects, this could be a symptom that they have lost their motivation or have too many other duties that are conflicting with your hospital value analysis program.
- Rejected Projects: This is a key indicator of the effectiveness of your hospital value analysis program. If you have more rejections than approvals, it is time to reevaluate what is causing these denials.
- Projected vs. Actual Savings: It’s one thing to project savings, it’s another to have actually saved them. That is why there must be follow up by your project managers to verify the savings and document that the savings have in fact been achieved. You will find that there will be a big difference between these two numbers.
If you are looking to move your value analysis teams to the next level of performance, then you will need to measure, manage, and control your outcomes differently. These four new measurements will go a long way to achieving that goal. Remember: What is measured happens!
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