Savings Beyond Price™
Innovative Supply Savings and Quality Solutions That Work
by Strategic Value Analysis® in Healthcare
Did You Know...?
That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.
Savings Beyond Price -Weekly eNewsletter - July 14, 2010
Robert T. Yokl
President & Chief Value Strategist
Always see the Big Picture
Greetings,
It’s easy to see what’s in front of you, but it’s much harder to see the big picture (total cost of ownership) when you are evaluating, investigating or analyzing supply chain savings opportunities for your healthcare organization.
Your total cost of ownership can be interpreted as “the sum of the purchase price plus the subsequent costs of ownership over the life of you product, service or technology.” It’s the hidden costs that can easily exceed your upfront investment on any commodity that you are purchasing.
This formula can easily be visualized by looking at the total cost of ownership over five years of just one IV pump (initial capital investment, IV sets, preventive maintenance, electric, repairs and parts, and salvage value). Based on our studies the initial investment for the pump of $3,500 might be considered reasonable. However, we have found that the total cost of ownership over five years could be as high as $246,929 when you factor in all of the running costs I just talked about over the useful life of just one pump.
Understanding, internalizing and then employing the total cost of ownership concept when you are evaluating your purchases (and analyzing your utilization cost) can place you in a better position to identify huge savings opportunities for your hospital, system or IDN.
To do so effectively you will need to: (i) ask the right questions of your staff, clinicians and vendors, (ii) start collecting data on your actual utilization cost of the products, services and technology you are buying and, (iii) always look at the big picture vs. what’s in front of you now in making your value-based decisions.
Your Partner In Savings Beyond Price™,
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
1-800-220-4274
P.S. If you would like to learn more about how to reduce your savings beyond price you might want to read my article “ Price is the Smallest Factor in the Savings Equation” selected from our library of 400+ need-to-know articles.
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Healthcare Supply Utilization Revolution
Read this book and in a few weeks save more money than you have in years. Sounds unbelievable? Robert T. Yokl and Robert W. Yokl, healthcare’s leading authorities in Supply Utilization Management, have helped hundreds of hospitals, healthcare systems and integrated delivery networks to saved close to a half billion dollars by employing the same utilization management strategies, tactics and techniques that they will teach you in this book.
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