Sponsored: HealthTrust; August 2023- The Journal of Healthcare Contracting
Healthcare providers nationwide continue to face a host of financial headwinds such as ongoing supply chain disruptions, staffing shortages and inflation. The unparalleled challenges while caring for millions of COVID-19 patients have only fueled these substantial increased costs required to care for patients – putting hospital’s financial steadiness at risk. According to a recent report from Kaufman Hall, the median operating margin for hospitals was 0% in April, leaving hospitals with little to no financial flexibility. While many hospitals and health systems are taking steps to identify opportunities for savings, many are also under the impression that they have run out of options.
Value analysis is a comprehensive solution for hospitals to combat these challenges as it identifies the right places to look for cost savings through evidence-based, standardized, and qualitative practices. A value analysis program reviews the quality, utilization, and overall cost of a product, practice, or procedure across categories. This guarantees that the organization delivers the best patient care while also creating value for the hospital or health system. However, hospitals need collaborative input from across their organization and external partnerships to achieve their program goals and objectives.
Integration and collaboration as the key to success
A successful value analysis program should mitigate supply expense growth, accelerate and drive value, standardize operating models and processes, and enhance clinician and patient experiences – but these goals are more seamlessly accomplished when there is clinical integration across a supply chain process. This clinical integration occurs when healthcare systems engage clinicians in choosing and committing to certain suppliers – leading to improved quality control, efficiency and cost savings.
A strong value analysis program will ensure a healthcare system’s stakeholders, including clinicians, are working in lockstep to achieve their goals and objectives, but this can only be accomplished with the right governance and structure in place. HealthTrust leverages its operational expertise to build this structure with clearly defined roles and responsibilities so a value analysis program can be advanced or adopted across an organization. From there, HealthTrust helps teams make optimal decisions around cost effective products while assuring that hospitals never compromise on care.
Working with experts at HealthTrust
HealthTrust takes a holistic approach to the value analysis process and offers more than just a playbook for execution. From start to finish, HealthTrust partners with hospitals and health systems to cross challenges they face by using its operational expertise, contract familiarity and strong network, which helps leaders effectively develop strategies for supplies and foresee shortages or barriers.
Want to begin a value analysis program at your facility? Reach out to our Advisory Services team at solutions@healthtrustpg.com to get started.