Are your Value Analysis Arteries Clogged?
Savings Beyond Price -Weekly eNewsletter – October 23, 2008
Robert T. Yokl
President & Chief Value Strategist
Greetings!
Are your Value Analysis Arteries Clogged?
I have identified a new disease called Grouppurchasingsclerosis that most healthcare organizations that have supply value analysis programs are at risk of developing or are already experiencing serious symptoms. This new disease is clogging or narrowing hospitals, systems and IDNs vital saving arteries with big fat GPO contracts and could be fatal to your healthcare organization’s financial health.
You heard me right, if your healthcare organization has Grouppurchasingsclerosis then very little savings is moving through your Value Analysis funnel® because it’s clogged up with new or renewal GPO contract evaluations. This disease can be silent and deadly for those hospitals, systems and IDNs that don’t pay attention to the warning signs.
Just recently a MM told me that his hospital had several symptoms of this fatal disease. He has personally observed that his two value analysis teams (clinical and surgical) spend 70% of their time evaluating new and renewal GPO contracts and spend very little time investigating the waste and inefficiency in his hospital’s products, services and technology’s value streams where the greatest savings opportunities reside.
I then gave this MM a prescription to stop the pain and suffering he was experiencing. This called for his hospital to establish a new GPO contract team that would be dedicated to evaluating and selecting new and renewal GPO contracts, so that his present two value analysis teams could get down to their real work of performing value analysis studies without being bogged down with their artery clogging GPO contracts.
This is not to say that your GPO contracts aren’t a vital and essential element of your supply chain expense management program. What I am saying is that your GPO contract due diligence process shouldn’t supplant your value analysis efforts if you don’t want to develop this dreaded and hideous disease that I call Grouppurchasingsclerosis.
If you don’t heed this warning you will be putting your hospital, system or IDN at risk of never wringing the towel dry of ALL of your best supply chain savings opportunities since you will be clogging your VA arteries with your GPO contracts that should be analyzed with a separate and distinct contract team. With this said, isn’t it time that you check if you have any symptoms of Grouppurchasingsclerosis at your healthcare organization?
Your Partner In Savings Beyond Price™,
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
800-220-4274
P..S. Legally, we cannot say our Utilizer™ Dashboard is the worlds best savings finding tool in healthcare today, but our clients thinks so which is all that matters to us.
P.P.S. Don’t forget to check out my new blog article, “Supporting Multiple Projects Doesn’t Need to Give You a Big Fat Headache”. This blog will show you how to get more done in less time with less hassle.
