Most healthcare supply chain organizations have only scratched the surface of what’s possible when you take an analytical, data-drive approach to value analysis. It means spending less time trying to obtain better prices and standardizing on anything that moves and isn’t alive and more time uncovering those hidden patterns, trends and anomalies in your healthcare organization’s supply streams. Here’s three value analysis analytics insights you need to leverage to save more in less time with less effort:
Leverage #1: Actionable, Not Transactional Results
Did you know that many healthcare organizations do little or no managing of their reprocessed medical devices? So much so, that most hospitals, systems and IDNs could save an extra 23% to 46% in new reprocessed savings (if they disregard their vendors incomplete transactional reprocessing reports ) and utilize value analysis analytics to manage them. For you see, the number of medical devices processed for a given period, isn’t the total picture of your total reprocessing activity at your healthcare organization. Only by establishing your own customized medical devices reprocessing analytics model with your own data can you be sure you are squeezing the last unnecessary dollar out of your reprocessing budget.
Leverage #2: Understanding Your Outliers
Don’t kid yourself, your healthcare organization has outliers or something that sets you apart from your peer group, such as utilizing 4.2 more bath kits per patient day than your peers that you need to know about. Again, you won’t know about these anomalies based on transactions that can be hidden in your purchasing statistics and then easily be talked away by your customers as being caused by a high-volume period (“We were busy then”). Don’t let this happen to you, get your value analysis analytics in line before you jump to the wrong conclusions or buy into questionable lip service.
Leverage #3: Identifying New Savings Opportunities
Your price and standardization savings are slowly disappearing. The typical hospital, system or IDN saves 1% to 3% of their supply budget annually. This isn’t enough savings to move the needle if you consider inflation ( 2.44% in 1918) in any given year. Therefore, supply chain leaders must have other savings sources (i.e., utilization) to bridge their healthcare organizations ever-widening budget gap. Utilization (wasteful, inefficient consumption, misuse, misapplication and value mismatches in your supply streams) savings can only be identified with value analysis analytics. I can say this with confidence, since we have been applying this value analysis technology for over 12-years with great success for our clients.
The time for back of the envelope calculations has ended, if your hospital, system or IDN is serious about double-digit supply savings for your healthcare organization. If so, you need to jump on the value analysis analytics bandwagon. If you do, you will make your saving job much, much, much easier in 2019 and beyond.
If you are looking for innovative Value Analysis or Supply Utilization Tools, please sign up for a no cost no obligation demonstration to see how you can take your purchase service program to a whole new level.