Sep 17, 2015
In recent years, healthcare has become increasingly focused on simultaneously improving cost, quality, and outcomes. With these important objectives top-of-mind for providers, it’s not surprising that smart organizations are pursuing initiatives that can impact not just one of the goals, but rather all three. One of these key strategies, which is often underutilized, is optimizing clinical product spend.
Clinical product spend, including the selection and purchasing of Physician Preference Items (PPI), frequently falls under the domain of the supply chain’s Value Analysis Team (VAT). They are responsible for executing on this strategy—and achieving results. Since PPI spend is one of the fastest growing cost segments for hospitals nationwide, it represents a significant opportunity for savings.
However, VATs typically face an uphill battle because despite the importance of a robust value analysis program, the team’s role is not widely understood. VATs often struggle to engage the physicians and operational leaders whose support is crucial to their success. To increase visibility and drive results, experts recommend creating a Value Analysis Team Dashboard that measures key performance indicators (KPIs).
This dashboard is mission critical to not only to monitor progress towards clinical, financial, and operational targets, but also to help improve efficiency and promote accountability within the team. By measuring trends, VATs can evaluate which approaches yield the greatest ROI. Most importantly, VATs that demonstrate impact are more likely to garner additional investment and backing from leadership.
Below is a 3 step quick-start guide for creating an effective VAT dashboard:
Step 1: Revisit the objectives of the value analysis program: Does your program have a mission statement? If so, has it been reviewed recently? If not, it’s worth updating because value analysis programs now have a broader set of objectives to align with the mandates of value-based care. The team’s mission is no longer simply about approving new product requests as it had been in the past. Also, take the time to review job descriptions for value analysis team members. These descriptions should be both well-defined and clearly communicated to the staff tasked with fulfilling these expectations.
Step 2: Define key performance indicators (KPIs) and set goals: Below are the recommended basic metrics:
As the dashboard evolves, it can be leveraged to track more advanced KPIs as well.
Step 3: Determine a regular cadence to review performance as a team: Assign a team member to prepare monthly or quarterly reports. But rather than just distributing, schedule time to discuss performance. Then, collaborate to develop action plans that address red flags, as well as to celebrate small wins. Some health systems choose to dedicate the first 10 minutes of committee meetings to discuss metrics. Discussing progress holds the team accountable for efficiency metrics and promotes a customer service mentality that keeps physician “customers” satisfied with the value analysis program.
To see an automated dashboard report available from Lumere, contact us at email@example.com.
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