Most health systems now have designated value analysis (VA) teams and VA managers along with supply chain analysts and contract managers that predominantly do the work on new product requests and value analysis projects. This has become the norm for healthcare value analysis but that does not mean that only those chosen few who work on VA projects and sit on the VA teams are responsible for value analysis at health systems.
Value analysis is really everyone’s job at a health system, but many think it is “Supply Chain’s job” or that they only need to engage when a new product request is put in. This could not be further from the truth. In fact, when you really step back and frame out everyone’s role in your organization, you have a true understanding of VA being everyone’s job.
Department Heads and Managers – Many of your department heads and managers sit on your VA teams to offer their insights and assist with facilitating value analysis studies and reviews. Whether they are on a VA team or not, they are budget holders who are responsible for their department’s dollars. They request new products, solve problems, and work with Supply Chain in procurement. Department heads and managers are some of the key beneficiaries of value analysis outcomes as they are affecting their departments and employees’ everyday duties and responsibilities. Although it can be challenging, it is essential that department heads and managers not only engage in the VA process but also ensure their respective business units operate in alignment with VA practices. Everyday departmental operations are the foundation for cost control, quality improvement, and better outcomes, making it essential to embed VA principles within departmental teams.
C-Suite and VPs – Those at the top of multiple departments and high-level decision making play a key role in value analysis as well as holding the line on costs and quality. Let’s face it, they do have the power to circumvent the VA process, if need be, but the majority realize that these processes are vital to the life blood of the organization from a cost, quality, and performance perspective. It is important to remind C-Suite and VPs of their responsibilities in the VA process as they are high level stakeholders who set the tone for how value analysis is performed in their departments.
Line Staff and Employees – They may not have a say in the VA process but they are users and sometimes stakeholders, and let’s face it, they know what is going well, bad, or just okay with the products and services being utilized every day. It is important to train your employees to not only take care of their patients and perform their duties but to also report waste, inefficiencies, and problems with products before they cause major issues. Imagine if health systems created systems for the line employees to call out issues before they become major problems or worse, major cost overruns. Keep in mind, this is going to take some thoughtful training (not a lot, but thoughtful) to let them know they are part of the VA process and to help them understand what they need to call out if the case ever arises.
Physicians – Doctors don’t mince words on anything, and they will call out issues more than most which is really something we want in health systems. However, it is important to recognize that they are performing procedures in operating rooms, cath labs, and other high-intensity settings, working within tightly scheduled time blocks. As a result, they have limited capacity to actively participate in value analysis beyond advocating for new product approvals. That said, it is essential to reinforce that physicians are a critical part of the VA process. Health systems should establish efficient, streamlined channels for physicians to quickly communicate product concerns, performance issues, or opportunities for improvement to Supply Chain and Value Analysis Teams. For example, if a surgeon consistently needs to use two RF ablation instruments for a procedure that should require only one, this feedback should be captured and addressed. Encouraging this type of input benefits the surgeon, improves patient care, and supports the organization’s financial performance. In many cases, physicians would prefer that resources be allocated toward innovative products rather than lost to inefficiencies in existing practices.
While health systems routinely act on patient feedback collected through post-visit surveys, there is often no comparable feedback mechanism following contract conversions or new product implementations. Instead, these changes are frequently absorbed into routine operations without structured evaluation. However, organizations already have a comprehensive, end-to-end perspective — from the C-suite to physicians, department leaders, and frontline staff — that can be leveraged to identify both challenges and successes in value analysis.
With targeted training and engagement of key stakeholders, health systems can continuously monitor and respond to the “pulse” of their value analysis efforts. Most importantly, fostering a culture where “value analysis is everyone’s responsibility” requires minimal investment but can yield significant, ongoing improvements in cost management, quality, and patient outcomes.
***If you are interested, email me at ryokl@svahsolutions.com and I can share a “VA is Everyone’s Job” slide deck for you to customize!
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