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 - September 27, 2010
Robert T. Yokl
President & Chief Value Strategist
How Relevant is Price Savings Today?
Greetings,
I have been asked by several clients recently this question, “Is price savings still relevant in the healthcare marketplace?”. My answer was that there is still some price savings to be achieve by hospitals, systems and IDNs who haven’t reigned in all of their price opportunities (i.e. physician preference items), but my overall perspective is that these price outliers are quickly being trimmed down by healthcare organizations to almost nothing.
More importantly, inflation is raising its ugly head again with many commodities (cotton, aluminum, steel, iron, and rubber) that are going to necessitate suppliers to raise their prices to healthcare organizations. Further, I predict that regional GPOs and alliances will put a small dent in the rate of inflation on many commodity groups in the short-term, but won’t hold back the tide of inflation in healthcare supply chain expenditures over the long-term.
However, this doesn’t mean that there aren’t huge supply savings still to be achieved in healthcare supply spends. We just did a study for a client that identified 8.6 times more savings in value analysis opportunities than in their price outlook, and seven to 15% savings available for all healthcare organizations in their utilization management savings.
Another client of ours just reported to us that their utilization management savings is in the range of $1.5 million dollars or 52% of their total savings for the period they reported to us. This makes my point: There is still price savings available for healthcare organizations, although utilization management is actually outpacing price savings today.
So while healthcare organizations new price savings may be waning, on the whole, supply chain savings are on the upswing for hospitals, systems and IDNs who look beyond price for even deeper and broader savings that are ready to be harvested.
That’s why foresighted supply chain professionals are expending even more time on savings beyond price initiatives, than their price savings projects since their savings yield is much much better in this area of their responsibility. Isn’t it time you consider this same strategy to reign in your total cost from acquisition to disposition?
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 want to read more about how to reign in your total cost, you might want to read my new blog article on the Journal of Healthcare Contracting’s website this week.
JUST ANNOUNCED -
Breakthrough Game Changing Book is Yours for FREE!
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.
The Savings Beyond Price Blog Is Back and Better than ever!
Supply Chain ValueNet
Proven Strategies, Resources and Tools You Can Count On!
- Benchmarking
- Best Practices
- Resources
- And More...!
|
Sign Up for Our FREE Weekly Savings Beyond Price eNewsletter to Receive Exclusive Content Not Found Anywhere Else
PLUS as an added Bonus, we'll
also send you our SPECIAL REPORT "Your
Targeted Blueprint for Supply Savings Success!"
Subscribe Today! |
© 2008 - The Strategic Value Analysis in Healthcare, P.O. Box 939, 3887 Skippack, Pike, Skippack, PA 1-800-220-4271
About SVAH - Blog - Press Releases - Technology Value Analysis - Clinical Value Analysis - Events & Speaking Engagements - Case Studies and Success Stories - General Hospital Consulting and Supply Chain Management - Value Analysis Bookstore -Value Analysis University Supply Best Price Analysis - Supply Chain Scorecard and Dashboard - Supply Six Sigma - Strategic Supply Chain Management Planning - Value Analysis Software - Value Analysis Services - Healthcare Supply Expense Reduction and Analysis - Value Analysis Team Training Programs - Supply Chain Best Practice Series TeleSeminars Savings Beyond Price Newsletter - Strategic Value Analysis in Healthcare White Papers - Supply Chain Benchmarking - FREE Savings Beyond Price Weekly Newsletter - Archived Weekly Value Analysis Articles -Hospital Consulting Clients - Contact Us