STRATEGIC VALUE ANALYSIS IN HEALTHCARE

Advancing Healthcare Organizations to the Next Level of Supply Chain Savings


 
 
   

Savings Beyond PriceTM -Weekly E-Zine- May 25, 2005


by Robert T. Yokl, President and Chief Value Strategist


Why Change Management Is A Process, Not A One-Time Event


“Organizations Don’t Change, People Do (usually One At A Time)”

                                                        Geoff Kaufmannn

Supply chain management is all about change if you want to get it right.  It’s about educating your healthcare organization to think and do differently to improve your supply chain performance – evermore!

It’s not about doing the same things that you have been doing and expecting a different result. And it certainly isn’t a one-time event.

If you haven’t figured it out already change management is a process,  that enables people to change one at a time.  If you treat change as a one time event (one unrelated initiative separated in time by another) with no linkage, connection or correlation to each another you won’t achieve the desire result of people embracing change as opposed to resisting change.  

 

One-Time Events Inhibit Change

From my vantage point in the marketplace I see hospitals and healthcare systems repeatedly starting and stopping one time supply chain management initiatives, schemes, projects and programs ( e.g., physicians gain-sharing, price leveling and physician preference items reductions programs). This looks rational and lucid on the surface, but in reality inhibits long-term change at your hospital or healthcare system.  

If you treat change as a one time event without a process to smooth the road your batting average for success will be very low because these one-time events have no lasting effect on changing your culture.

On the other hand, if you have a proven, repeatable and scientific money-saving process bought into by your executive management, department heads, managers, clinicians and your supply chain professionals, you can make any necessary change a routine occurrence, not a new battle to be fought for the high ground.

 

Change Management Is A Process

Once your healthcare organization understands that the #1 Law Of Change Management is that change is a series of connected natural occurrences that promote lasting and sustainable improvements, not a progression of one-time events then, and only then, will your people change – one employee at a time.

From my experience hitting this change management milestone where change is a natural occurrence, only takes about 12 to 18 months to come about, if you have the right people, with the right process, looking at the right things, at the right time, one employee at a time!

 

MAILBOX 

What Would You Recommend As A Training Program For Our Association’s Supply Chain Professionals’ members To Teach Them About Savings Beyond Price? F.V.

First of all F.V. your members will need to unlearn everything they have learned to date about how to manage and control their supply chain, because the strategies, tactics and techniques they are employing are now anachronisms from another time. 

F.V. if you look at most of the training program brochures that come across your desk they are all filled with PRICE ORIENTED tactics, not FUNCTION ORIENTED strategies. Function oriented strategies is the key for making savings happen -- beyond price.

At the top of your agenda for your training program should be training in functional analysis and the FAST Technique (Functional Analysis System Technique) to give your members the basics of value analysis.

 

If you would like to consider my training programs in the mix, please give me a call.

Bob Yokl, Sr.

Chief Value Strategist

Strategic Value Analysis In Healthcare

800-220-4274

bobpres@strategicvalueanalysis.com

P.S.  If anyone else has a burning question that you would like me to answer, please call or e-mail me and I would be delighted to answer it.


 

There is Still “Gold in Them Thar Hills”

YOUR LEGAL FEES ARE EXCESSIVE AT ANY COST!

Why Are Your Legal Fees Costing Your Healthcare Organization 25% More Then They Need To be?

Your healthcare organization legal fees could amount to hundreds of thousands of dollars annually, so why aren’t they being controlled just like any other purchase service?  The answer is because everyone in your organization believes these fees are untouchable!   Not so, in my book of rules – where the first rule is that -- there are no rules!

The fact is that Legal fees are just like any other expenditure that your healthcare organization contracts for.  Here are 10 WAYS TO CUT YOUR LEGAL COSTS by Fred S. Steingold, Esq., which I have expanded on to assist you in reining in your bloated legal costs:

  1. Talk about your fees with your attorney or attorneys and negotiate different fees for different assignments, because all legal assignments aren’t created equal!
  1. Reach an understanding with your lawyers about how you will be charged for each case, e.g., hourly, flat fee, contingency.  A flat fee could be the best choice for you in many cases
  1. Seek the most favorable fee arrangements for each particular case.
  1. Try to settle cases rather than litigate.  Litigation will drive up your costs.
  1. Have your lawyer design forms that you can use in routine transactions, e.g., contracting for purchase services, release forms, terms and conditions, bidding documents, etc., so you don’t need to contact them on each transaction.
  1. Guarantee a minimum number of hours of work during the year for your lawyer as an incentive to lower their hourly rate.
  1. Use a less expensive lawyer for small collections and simple cases.
  1. Give your lawyer copies of all pertinent records in a new case so you don’t have hours of phone calls to get this information.  Being organized will save you money!
  1. Handle as many matters as you can yourself.  You don’t need a lawyer for everything you do!              
  2. Hire a paralegal to do as much of your legal work as possible.  This decision alone could save you thousands of dollars in legal fees annually.

As you can see from the 10 tips I have outlined above, your legal fees can be cut and pruned just like any other commodity you are purchasing, if you are willing to take the responsibility to do so.


This Book Isn’t For Everybody:  Some People Don’t Know What They Don’t Know and Don’t Want To Learn Anything Differently! For the 20% who do, here is the magic bullet you have been looking for…

 If You Could Find a System or Process That Would Enable You To Take Your Healthcare Organization to the Next Level of Supply Chain Savings and Save Thousands and Even Millions of Dollars, What Would That Be Worth To You?

Strategic Value Analysis In Healthcare - The #1 Smart Strategy for Taking Out Cost In A Healthcare Organization's Supply/Value Chain

The challenges in the Healthcare Supply Chain over the next millennium are clear, to reduce costs to the lowest acceptable levels and maintain a high level of quality for our patients and customers.  The challenge seems bigger than any one individual who would want to try to change the paradigm of thinking in our respective healthcare organizations in order to make savings happen quickly, efficiently and with the highest ROI.  With Strategic Value Analysis in Healthcare: The #1 Smart Strategy for Taking Out Cost in A Healthcare Organization's Supply/Value Chain, you can make that savings happen! Sign up now for this money-savings process www.strategicvalueanalysis.com/strategicbook.htm.

 


Sign Up for Our FREE Weekly Newsletter

"Savings Beyond Price" - Click Here to Subscribe and to get your FREE Copy of our Special Report "Your Targeted Blueprint for Supply Chain Management Success"

 

 

   
   

© 2005 Strategic Value Analysis in Healthcare