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 - November 11, 2009
Robert T. Yokl
President & Chief Value Strategist
Time is Running Out
Greetings,As I write this article all of the news outlets are reporting that the House’s Health Care Reform bill HR 3200 has just been passed. If you haven’t read a synopsis of this bill you should, seeing as when this bill is merged with the Senate bill and if approved, it will affect EVERYONE in the healthcare industry for decades – big time.
Highlights: If you are a healthcare device manufacturer it will cost you 2.5% in additional taxes to sell your products to healthcare organizations. Who do you think is going to pay for this extra tax burden?
$500 Billion will be slashed from hospital’s Medicare reimbursement that has already been pruned for years by the Feds. How are you going to replace this revenue source to meet your budget commitments?
$32 Billion in long-term care reductions are contained in this bill. This is in addition to a 12 billion dollar cut in October of this year by CMS. If your hospital has a long-term care facility how are you going to fund it going forward?
Get Ready! If you aren’t preparing for these big, monumental and disruptive changes in our healthcare system, now is the time to do so. I have already observed that progressive hospitals, systems and IDNs making radical changes to their supply chain operations. They have been centralizing all of their purchasing activities under one supply chain division, establishing distribution service centers, reducing their PPI cost to an absolute minimum and are attacking their utilization misalignments. Is this what you are doing too
Time is Running Out! Even if healthcare reform isn’t passed this year or even next year fundamental changes in healthcare reimbursement will be the order of the day going forward. We are now at the TIPPING POINT with our healthcare cost which is increasing 10% to 13% annually for our employers. These costs are unsustainable over the long-term; time is running out for healthcare organizations that aren’t ratcheting down all of their costs to prepare for this eventuality.
Don’t wait for the Senate bill to be passed to make sweeping and essential changes in your supply chain operations; the winds of change are upon us and their velocity is growing every year necessitating a change in the way we do business. If we don’t start this change now we will be left with federal mandates like the ones that I just cited that will be almost impossible to recover from or to keep our boat afloat.
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 haven’t seen our press release on our new book, “Supply Utilization Revolution” you might want to view it now. The book is FREE ($12.95 Value), but the information is PRICELESS! Don’t miss this extraordinary (while our limited stock lasts) offer!
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