Professional Documents
Culture Documents
Objectives
Identify which value analysis models are
being utilized on a national level.
Explore the various components of
several value analysis models.
Identify what value analysis models are
the most successful.
Value Analysis
What is it.
VATs
(Review &
Evaluation)
PRODUCT
USERS
(Product
knowledge &
evaluation)
Supply Chain
FINANCE
(Cost-benefit
knowledge)
Decision-making platform
VHAs Clinical Quality Value AnalysisTM
An organized approach to decisions about products and
services in the context of cost effective, safe and quality
patient care that includes:
Interdisciplinary involvement
Support by executives
Involved physicians
Applied consistently across the organization
Definition
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n
exceed, the
patient care.
Source: Premier
Consistent Attributes
Value Analysis
Why do it?
Benefits of
VHAs Clinical Quality Value AnalysisTM
Takes product and service evaluation from subjective
to objective
Provides a formal, customized, collaborative approach
to reduce and manage expenses
Involves interdisciplinary teams
Includes all supplies and services
Ensures optimal benefits because of staff buy-in
Integrates the Medical Staff into the ongoing process
Supported by clinical documentation which maintains
and/or improves quality and customer satisfaction
10
Value Analysis:
Hospitals Rising to the Challenges
Advances in
Technology
Lack of Data
Drive for
Standardization
Financial Pressures
Bias in
Decision-Making
Source: Premier
Minimal
Transparency
Duplication
of Efforts
Source: MedAssets
12
Value Analysis
Comparison of a few
National Models
88Step
StepProcess
Process
Product Opportunities
New Technology
Change in Vendor or Market Place
Standardization Opportunity
Change in Practice or Regulatory Issues
Contract Price Change
Gather Data/Structure
Opportunity
Preliminary Negotiations
Review Data
Engage Contract Agent
Maintain Good Business Relationship with Vendors
Identify GPO Affiliation
Identify Distribution Relationship
Plan In-service
Correlate Evaluation Data
Present Options
Substitute Product
Selection
Final Negotiations
Contract Agent Completion Contract
and/or Pricing Agreement Language
Include Product Support during and
after Conversion
Shipping and Payment Terms
Implementation
Assign Accountabilities
Communication Plan
Implementation Plan
Pre-conversion Meeting
Training Plan
Audit Process
Measure Success!
Periodic Audit
Report to Stakeholders
Ongoing Vendor Alliance and Support
Initiative goals
Project plan(s)
Identifies &
supports
additional
stakeholders
Finance
Bio-Med
Other Depts
Develop
objective criteria
Support
processes?
Detail review of
book of business
Develop
implementation
plan
Metrics
Perspective
Best Patient
outcomes &
experience
Product performance
requirements &
practice protocols
Service line
optimization
Sourcing, contracting,
logistics decisions
Infrastructure
Stakeholder Involvement
Clinical Performance
Comparative
Effectiveness
Evidence-Based
Medicine
Resource
Utilization
Harm Avoidance
Reimbursement
Implications
Physician & Clinician
Engagement
Market Intelligence
GPO
Portfolio
Contract Optimization
Clinical Data
Source: Premier
Charge Master/
Item Master Linkage
Spend Data
Premier: ValueAdvisor
Automating Value Analysis
TRIAGE
TRIAGE
Alerts
REQUEST
REQUEST
New items
Decision
Routing
ValueAdvisor
TM
Savings
Opportunity
Facilitates Collaboration
Promotes Informed Decision Making
Tracks / Measures Results
ANALYZE
ANALYZE
Promotes Accountability
Drives Standardization
MONITOR
MONITOR
Did we achieve
our goals?
What was the
actual impact
Source: Premier
DECIDE
DECIDE
What did the
Value Analysis
Committee decide?
Source: Premier
Aspen
Healthcare
Metrics
Clinical Preference
Items
Clinical
Value
Analysis
Difficulty
Physician Preference
Items
Commodities
Standardization
Easier
Source: MedAssets
29
Extract data
Analyze data
Prepare analytics in
rational format
Present to stakeholders
Discuss criteria for NOT
implementing opportunity
Source: MedAssets
A1
MedAssets:
Processes Depend on Data Connectivity
INFO
Physician/surgeon approaches
New Product
INFO
Physician/surgeon approaches
New Product
INFO
Team/Committee Review
INFO
INFO
Approved
Decision forward to
team/committee
Yes
Tentative Yes
No
Determination made if
a trial is needed
Yes
Trial
Decision Decline
INFO
Refer to Form Entitled,
technology
Trial/Investigation
Request
Physician feedback
obtained
No
Successful
trial
INFO
Yes
INFO
Source: MedAssets
Decision
communicated to
impacted physicians
/item stocked on shelf
Training Coordinated
INFO
Stock
on shelf
No
Declined
Source: MedAssets
Optimal
OptimalSupply
Supply
Expense
ExpenseManagement
Management
34
Source: MedAssets
Premier
OverallTop
Performer
Peer
Dalteparin
Cases
TotalVariableCost/Case
PharmacyAverageVariable
Cost/Case
LabAverageVariableCost/Case
BloodBankUtilizationRate
BloodBankAverageVariable
Cost/Case
ALOS
BleedingComplications
BleedingComplicationRate
PE/DVT's
PE/DVTRate
MortalityRate
2637
$4,187
94,333
$5,850
124
$8,073
1903
$10,744
0
$0
5974
$7,872
$864
$179
20.5%
$910
$257
25.6%
$841
$196
49.9%
$1,511
$284
60.3%
$0
$0
0.0%
$616
$273
23.6%
$147
5.7
91.0
3.5%
19
0.7%
1.5%
$96
5.9
8102.0
8.6%
672
0.7%
2.2%
$248
5.9
14.0
11.3%
4
3.2%
1.6%
$228
6.8
638.0
33.5%
30
1.6%
2.7%
$0
0.0
0.0
0.0%
0
0.0%
0.0%
$48
5.5
0.0
0.0%
0
0.0%
3.0%
%ofTotalLMWHCases
95.5%
92.0%
4.5%
1.9%
0.0%
6.1%
Source: Premier
Definition
Process
Executive
Stakeholder
39
Organizational Current
State Summary
Organizational Current State Survey Results
78%
75%
73%
40
41
Source: Premier
Clinical Outcome
Innovators
Financial Impact
Laggards
Conflict of
Interest
Lack of
Adminstrative
Support
Group Purchasing
Commitment
Physician
Satisfation and
Recruitment
Clinical
Marketing
Preference
Perceived
Complexity
ome
Clinical Outc
pa
Financial Im
ct
OR.Create Balance
Clinical Outcome
Financial Impact
Pain/Gain
Pain
High
Pain/High
Gain
Low
Pain/Low
Gain
Gain
Difficulty
Changing Culture
Organizational
Culture Change
Individual
Behavior Change
Individual
Attitude Change
Education
&
Knowledge
Time
Thank You
Melanie Miller, RN, Past President, AHVAP
Peg Tinker, Sr. Director, VHA Performance
Services
Gina Thomas MBA,RN, CMRP, FAHRRM
Regional Vice President South Central
MedAssets Inc.
Dale Newman, RRT, MBA, Product Director,
Premier, Inc.