Value Analysis Analytics
Audio Bonus
What You Can’t See Will Hurt You Most of your new saving opportunities are below the water line
We like to equate supply chain expense savings to an iceberg! Above the waterline are your price and standardization savings, which are easily identified. However, your robust savings opportunities (67% to 79%) are below the water line where they are hidden from your view. More importantly, these hidden utilization savings can and will hurt your healthcare organization’s bottom line if not eliminated, rectified, and controlled. Scientific Approach That’s why a more scientific approach is called for to root out your utilization misalignments before they damage your healthcare organization’s bottom line. This approach is called value analysis analytics or the new science of savings. With this said, I’m sure you realize that your hospital, system or IDN’s senior management is looking to its supply chain professionals for even more savings to help them meet this unprecedented and unanticipated challenge in the healthcare marketplace that we are facing; lower revenues, demand of higher quality, and more patients. Unfortunately, these new supply chain savings won’t be achieved with price and standardization alone. New sources of savings must be discovered to bridge the savings gap that you will experience with the erosion (if you haven’t already) Spring 2013
Healthcare Value Analysis Magazine
37
