Let’s face it, in the rough and tumble world of the Healthcare Supply Chain we are forced to make split second decisions and move faster than we need to for just about everything. Why? Because nothing stands still in Supply Chain and neither does value analysis or cost optimization. This is tough, as Supply Chain and Value Analysis Professionals are some of the most careful and deliberate decision makers in healthcare. But, when push comes to shove, decisions need to be made for good or for bad and we must push ahead with the evidence, analysis, and data that we have at hand. Unfortunately, we tend to wing it or shoot from the hip more often than we like – and that needs to stop.
The most effective way to gain more time and make smarter decisions that improve both quality and cost is to proactively plan your key areas and establish clear strategies for how you and your Supply Chain organization will manage them. Below is my simple list that will start you down that road.
1. Recalls – As you may have seen in a recent interview with Recall Management Interest Group in our Healthcare Value Analysis and Utilization Management Magazine, recalls are the wild west of data, evidence, and optimal decision making. If you are experiencing this, take a step back and ask your leaders if you could form a strategic Recall Management VA Team (if you don’t already have one) and start a comprehensive planning process to cover all your bases in Recall Management. Make sure you include all your current challenges, bottlenecks, and look to automate your process with software and even cost tracking.
2. The Worst Number is One with Cost Optimization – Most organizations depend on their Group Purchasing Organizations to offer up their latest and greatest contract savings, which you should continue to do. But GPO price savings at the pump are not what they used to be and thus you need to have more areas like consumption and utilization management that will give you savings beyond price. The worse number of cost optimization strategies you could have is one – such as price only savings, which leaves all the other areas virtually untouched. Implement Utilization Software that incorporates your patient volume centric metrics in conjunction with actual supply spending in all your categories. That is the only way you will truly be able to gain buy-in from your department heads and managers on all the waste, inefficient use, and feature-rich products that this process will uncover with double-digit savings. But remember, you need to plan this out as it is more involved than you think.
3. Value Analysis Strategic Planning – VA Programs can easily get caught in a rut and become boring and repetitive – and may ultimately fail to deliver the results you want. To prevent this from happening, you will need to engage in a Value Analysis Strategic Planning Process which will help you keep your VA Program on advanced track – and of course all the great results and outcomes you will improve will also be nice. Don’t be one of those VA Professionals who think your program is the greatest thing since sliced bread, only to find out you are getting left behind by the rest of the field who does engage in VA Strategic Planning. Process, Training, Alignment, Best Practices, Benchmarking, and Workflow are only part of a solid VA Program.
4. Knowledge is Power with Cohort Benchmarking – For over 25 years, one of the most impactful tools our company has successfully leveraged for our customers is cohort benchmarking. It is great to be your own measuring stick, but it is much better to know where you stand compared to other like-sized hospitals or health systems in any and all categories of spending. You may think that you are doing great because you reduced your wound care spend by 40%, but with benchmarking you may realize you are still running 20% higher than your cohort best. Not only could you be leaving money on the table, but the overuse of wound care dressings may not be good for patient care. Start benchmarking and get ahold of this powerful element of your supply chain.
The adage, “You are either moving forward or moving backward, there is no in-between,” applies to the Healthcare Supply Chain and Value Analysis world. Take a step back and look in the mirror as objectively as possible and start evaluating where you are and where you want to be – then incorporate your goals and objectives into your planning process. Rarely do you hear of solid planning and execution failing when they have been planned out properly and with solid customer and stakeholder feedback.
Below are some similar articles that you may find interesting.
4 Steps to Go Back to Basics and Onward to Big Results with Your Healthcare Value Analysis Program
Trust but Verify in Healthcare Supply Chain and Value Analysis Optimization
Podcast 95 – Speed to Safety – Special Recall Best Practices Interview with RMIG