VALUE ANALYSIS TOOLS

10 Best Practices to Selecting Value Analysis & Utilization Management Tools

Robert W. Yokl, Sr. VP, Operation—SVAH Solutions

Attaining the Most Value Out of Your Tools

The value analysis (VA) and supply utilization management (SUM) world is becoming more challenging day after day. The biggest challenge for supply chain and VA professionals is to find the true tools to free up valuable time to focus on the tough areas in our value analysis programs. With over 16 years of providing such software systems to the healthcare marketplace, I thought I would share a few rules that would assist you in acquiring the best tools to aid in your challenge.

Get Over the Shiny Things –Marketing materials, “over the top” PowerPoint slides and glitzy charting does not make a good or even great software tool. When you are paying good money for these tools, it has to be software that is functional and easy for the end-user. Look for tools that give you the competitive edge in supporting your VA Program’s goals & objectives. Audit Yourself and Your Program –What is chewing up most of your time in working with your value analysis projects and teams? For example, if you are spending most of your time on detailed value analysis analytics using spreadsheets, then look for tools to automate these processes for you. If you are spending the majority of time in managing meetings, then look for features that will help you manage your agenda, minutes and action items. Don’t Be a One Feature Buyer –Sometimes software systems do just one thing but in the case of value analysis and utilization management systems there are multiple functionalities that you should be looking for in your software selection criteria. Remember, if you buy software for just one feature, you will eventually end up buying multiple solutions for all the VA tasks you need to manage. The result is that you pay more money and must log into 5-7 different systems. To top it off, none of these “solutions” talk to one another and you end up spending more time piecing together data to just get through one value analysis study. What else do you get with the software? –What other benefits does that software company provide you beyond the implementation of the system? What value added knowledge, features, coaching and/or support can they provide as part of their contracted software. Easy way to find this out, ask.

Figure Out What You Need Not What You Want –Psychology books related to “why people do what they do” often conclude that people do not buy what they need but in many cases they buy what they want. This is great in our personal lives where we can get leather seats with seat warmers in our upgraded SUV’s. Unfortunately, when it comes to healthcare, every dollar is a challenge to get approved. Take a moment to step back and determine “what is a value added spend that will result in short/long-term outcomes resulting in sustainability”? What are your absolute “must haves”? –Don’t bother looking at software systems on the marketplace that don’t meet all of your functional requirements---Must Haves. Would you buy a car without wheels or a steering column? The same applies to your requirements for a software system to achieve your goals. Don’t waste money on a system that only meets 2 of your 5 required functions. If you fail to plan, then you plan to fail.

Don’t Worry About Software Replacing What You Do, There is Always More in VA–A Senior Level VA Professional from a large IDN approached me after a recent regional educational program about integrating several advanced modalities into the VA programs at their hospitals. We talked about all the modalities that I presented but the ongoing theme was, “oh that’s my job to do that, and that is my job to do this, etc.” I got the impression that this person came to the presentation to chart out the areas where they could protect their turf instead of trying to implement new forward-thinking strategies. Enlist a Subject Matter Expert (e.g., “Techie Guru”) to Assist in the Selection–Many value analysis and supply chain professionals do not have a technical background in order to efficiently and adequately assess software vendors. What sort ofdatabase does this system run on? What is the programming platform you are using? Do you program this from scratch or use a purchased tool? How is our data protected? Do all the users have to log onto the system to put in a new product request? Can your system be customized and if so in what way? Again, enlist a colleague who can help you navigate these “technical” waters.

Envision the Pot of Gold at the end of the Rainbow –Step back and visualize the perfect tool(s) that you have chosen - what will they be doing for you? How much time will they be saving you? Will the system fast-track savings opportunities for supply utilization? Visualize using these tools every day to automate and enhance value analysis and supply chain evaluations. 10. What are your Stretch Goals & Objectives for the Tools? –It is always good to have stretch goals for any initiative, such as a module or reports that can find price savings for you compared to the marketplace. Once your minimum requirements in a software tool have been met, then broaden your requirements to all aspects of value analysis and supply utilization to find the perfect software tools for you.

These are just a few key areas that you should be thinking about as your leaders want you to improve your programs to enhance your analysis and improve the quality and bottom-line savings at your hospitals and health systems. To do this, you must start to think about the areas where you can automate your VA program to easily identify new and better areas for savings and quality improvement. Would you rather walk to your destination or would you rather drive or even fly to that destination? Automation is the path to take to improve value analysis and easily find supply chain savings. Remember, you must have the right tools to launch you to a new level. Why continue to be limited by the world of manual spreadsheets and word documents? Others have found that pot of gold at the end of rainbow –why not you?

FREE VALUE ANALYSIS SOFTWARE?

Finally a System for Hospitals with Little or No Budget to Have a Total VA System in Place

As a VA solutions leader, it is frustrating to see high quality VA professionals around the country toiling with multitudes of spreadsheets and word documents. Their talents, time and resources should be focused on working with the clinicians and key stakeholders at their organizations. This is the reason why I decided to start this totally free option for those out there who want to take the next step for their value analysis programs but have little or no budget to make this happen. Robert W. Yokl, Sr. VP, Operations—SVAH Solutions