healthcare value analysis
By Circe Munson , MSN , RN , CVAHP ; Kacey Wear , MSN , RN , CEN , CVAHP ; and Barbara Strain , MA , SM ( ASCP ), CVAHP
Value Analysis is Making the Clinical Connection to Supply Chain
In the current climate of healthcare workplace shortage , the return on investment in recruiting clinicians to supply chain is an intentional decision to assure streamlining processes , reducing variation through product standardization and utilization to ease stresses on workflow while assuring quality .”
The Association of Healthcare Value Analysis ( AHVAP ) held its annual conference the last week in October and offered a glimpse of how value analysis is being practiced today and how important imbedded value analysis professionals are to provider organizations . Circe Munson and Kacey Wear , nurse value analysis leaders within supply chain , teamed up with a conference presentation titled “ You Work Where ?: The Importance of Clinicians in Supply Chain ,” and provided these key highlights in an interview .
What Clinicians Think vs . Supply Chain
Supply chain is a system of organizations , people , activities , information , and resources involved in procurement and movement of product or services from source to consumption while the clinicians think of supply chain as how they get the “ stuff ” to care for patients — instruments , medication , dressings , durable medical equipment ( DME ), surgical implants , etc . You probably have your own perception about supply chain and how it is providing clinical integration through your organization but by the time you read this you ’ ll have a clearer understanding of the connectivity of it all .
The term supply chain management is often used to describe the business professionals whose training may be in engineering , supply chain finance or accounting with the overall goal to improve value to the health system . Circe and Kacey use the equation V = Q + S / C to sum up total value as the quality and services divided by the cost to provide that standard to their organizations . An article in Clinical Key 1 illustrates the roles supply chain and value analysis play in total value stating 15 percent of savings comes from negotiating contracts for improved pricing and the remaining 85 percent comes from influencing standardization and product utilization by physicians .
In the current climate of healthcare workplace shortage , the return on investment in recruiting clinicians to supply chain is an intentional decision to assure streamlining processes , reducing variation through product standardization and utilization to ease stresses on workflow while assuring quality .
Recruitment of clinicians is foundational to the successful build-out of the clinically integrated supply chain and includes such qualifications as clinical experience , licensure and certifications , degree requirements , proficiency in software such as Microsoft Office as basics . Other attributes were borne out in an audience participation text survey during their
presentation with responses varying from adaptable , commitment , handling chaos , critical care experience and overall leadership qualities .
Earning Trust with Service Line Leaders
A major factor to success is earning the trust of the organization by keeping the patient at the center of the process is to avoid the “ Command & Control Model ” of rigid leadership — one that is hierarchical , where managers gave orders , enforced inflexible policies , and didn ’ t welcome input from employees or adopt a decision-making model with appropriate clinical expertise . Time spent with clinicians in various environments where they work builds trust as well as regular communication to engage and re-engage promotes understanding .
Through their firsthand experience , Circe and Kacey were able to emphasize the value of clinical engagement by :
● Creating a voice for clinicians and physicians to have a clinical connection to supplies and implants
● Decrease risks by reducing variation
● Clinicians active review of product issues and finding alternatives
● Ability to engage in the clinical environment to understand opportunities for waste reduction and optimization of work practice
A real-world example : In 2015 , St . Luke ’ s observed that four different suppliers for non-absorbable hernia mesh were used by surgeons doing the same procedures . Was this preference ? Were four suppliers necessary ? What were the potential risks due to complexity and variation that ultimately can lead to increase costs ? A standardization initiative to reduce hernia mesh to one primary supplier with a carve out to one type of mesh with no alternatives was agreed to move forward based on the identified shared benefits :
● Standard mesh used across the health system for the same procedures reducing variation from hospital to hospital
● Less inventory
● Savings of more than $ 250,000
Why is a Clinically Integrated Supply Chain Important ?
The Institute for Healthcare Improvement ( IHI ) reported that healthcare has an estimated defect rate of 1 / 10 2 . Looking at how other industries who do not accept a rate over 1 / 1000 and in the ultimate Six