Greetings!
In talking with my
fellow supply chain executives around the country I
sense a level of confusion and frustration going on in
the healthcare supply chain world with strategies that
appear to be in the mainstream today may not actually be
effective for tomorrow or the next day (or was it a
good marketing push with little substance behind it?
Like that Never Happens!). What is a supply
chain executive to do to find the right strategies to
employ that inevitably will give long term sustainable
bottom line results to their unique and highly
specialized organizations?
Lets face it,
there is no one "GO TO" Strategy! But there is
an answer to that question which is simple to see when I
look at my own operations of my consulting firm.
As my SVAH teams work with customers all over the
country I find that we are not a one dimensional
consulting firm that only employs one or two of the
supply chain worlds best savings strategies. We
employ the best of the best elements from many different
disciplines, systems and techniques with the ultimate
goal to save as much as we can possibly save for each
customer on each respective engagement. And we
have to deliver!
An Eclectic
Approach is Key! Now you have heard me write
about this before and probably will get tired of me
writing about his but we need to employ an Eclectic
Approach or I as call it a best of the best strategies
based around a strong Value Analysis Team Structure and
Program. Now don't get me wrong, Value Analysis by
far is the BEST strategy out in the healthcare supply
chain today, but we need to employ other best of the
best strategies in order to feed our value analysis
savings fires!
Remember, SYNERGY is the key to employing a successful
Eclectic approach or best of the best approach!
Your Partner in Supply Chain Savings,
Robert T. Yokl, President and CEO
P.S. You have everything to win and nothing to lose!
Today
I am pleased to announce the roll out a brand new service
offering that I believe will take my customers to a whole
new level of supply chain savings. This program is the
pinnacle of supply savings success that will give you the
Eclectic Approach - the Best of The Best strategies.
Are
You Winning The War On Your Utilization Savings?
“Hospitals That Are Facing Raising Operating Cost And
Declining Margins Need To Look For New Weapons In Their
Fight For Profitability Every Year”
A recent study in the Hospital Financial
Management Magazine showed that hospital’s operating costs
are increasing at an alarming rate of 5% annually,
while hospital margins are down by 1.1%. Do these
statistics look like hospitals are waging and winning the
war on cost reductions and effectiveness?
I don’t think so…
Hospitals that are facing these raising
operating cost and declining margins need to look for new
weapons in their fight for profitability every year. One of
the most powerful weapons that you have in your
arsenal to wage and win the war on your utilization
misalignments is FUNCTIONAL ANALYSIS. Our studies
show that utilization misalignments represent 66% of
all new supply savings available to your hospital. More
importantly, these utilization misalignments are bloating
your hospital’s budgets by 3%, 6% or even
9%.
Definition:
Utilization Misalignments -
Wasteful
and inefficient consumption, misuse, mishandling and
misapplication of the thousands of products, services and
technologies you purchase annually. Example:
120-bed hospital renting percussion overlays in ICU at a
cost of $18.00 a day (or $73,000 annually) performed a
functional analysis and found their percussion overlays to
be a misapplication of this technology. Result:
$73,000 saved annually.
Now what is functional analysis?
Functional analysis (oversimplified for the purpose of this
article) is just this; every product, service or technology
has functions (or its reason for being), that must
skillfully analyzed for their use and aesthetic value. Here
are some key questions to get you started with this
analysis
1.
What does it do?
2.
What else does it do?
3.
What do users want it to do?
4.
What else would do the job?
5.
What would that alternative cost?
The comprehensiveness of your answers to
these questions will prepare you for an in-depth value
analysis study on the product, service or technology under
investigation. As well as identify and position you to
overcome roadblocks in your journey to make positive change
happen at your healthcare organization.
Healthcare organizations are at or beyond the
tipping point based on
The
Law of Diminishing Returns
(the more resources you commit to an operational area, the
lower your return on investment) with their “evaluation,
selection, standardization and sourcing strategies and
tactics”. It’s now time for all healthcare organizations
to move to the next level of supply chain performance and
attack their Utilization Misalignments with this powerful
tool called functional analysis if you want to win
the war of profitability every year.
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