Value Analysis Models (VAMs) are a burgeoning analytical tool that can help materials managers, operating room managers, CFOs and others to make comparative value assessments before reaching a critical purchasing decision. Although relatively new to the hospital field, more and more manufacturers are supporting these initiatives to bring critical information to their customers and the health care industry. VAMs aren't designed to conclude that one product is better than another but to be a tool that can help make the product acquisition process much easier.
One of the primary objectives hospitals and health systems have in any relationship with a group purchasing organization (GPO) is to save on their overall supply spending. So we wondered how some of the top-performing hospitals cutting supply costs with the help of their GPO achieved their results. This report profiles four hospitals and health systems who achieved millions of dollars in savings in the first year of their GPO relationship and beyond. As you'll find, winning physician alignment on managing costs played a key role in many of the successes.
As baby boomers reach retirement age, the demand for cardiac, spine and orthopedic implants is expected to escalate rapidly. Containing spending on these physician preference items (PPI) will be crucial for hospitals, which are facing reduced revenue streams due to bundled payments and other factors. Materials managers will play a lead role in devising cost-reduction strategies. They'll need to establish benchmarking data to share with physicians to build consensus on how to best cut PPI costs without sacrificing the quality of care. Follow these steps to get started.
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