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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 - May 24 2011

 

A Note from Robert T. Yokl,
President and Chief Value Strategist

I hope that everyone is looking forward to Memorial Day this coming Monday the 30th. It’s a day when most of us get our cookers out of storage and then fire up our grills with some hot dogs and hamburgers while kicking back and relaxing with our family and friends.

That’s just what I will be doing, and I hope you too will enjoy the unofficial kickoff of summer with the same enthusiasm that I will. But before you do so I have a few new ideas in this e-newsletter issue for you to reduce your waste and cut your cost so you can keep your saving machine humming in fiscal year 2012. Enjoy your Memorial Day holiday!
 

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Top Three Ways to Reduce Waste and Cut Cost

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Although price tweaking is still a prime cost cutting tactic for most healthcare organizations, this is tantamount to just shaving the top of the iceberg which can actually limit your overall savings yield. When you consider that 79% of all new supply chain expense savings (i.e., waste and inefficiencies) are under the iceberg, isn’t it about time we reduce waste and cut these hidden costs too? To assist you with this challenge here are the top three ways we have discovered to do just that:

1. Utilization Management

Every product, service or technology has an optimum (or ideal) consumption pattern. By measuring the consumption of your commodities (trays, kits, pacemakers, custom pack, etc.) against your peers, you will be able to identify waste, inefficiencies, misuse, misapplication, misappropriation or value mismatches in your products, services and technology purchases. The next logical step is to investigate why your consumption patterns are different from your peers?

2. Demand Management

Even though your utilization might be in line with your peers, you also need to understand why the demand (or frequency) of the products, services or technologies you are buying is increasing; Is it because your cases, procedures, tests, etc., are increasing or has something changed in your practices. The answer to these questions will give you a clue as to the direction that you need to go and the reason for the change in your buying patterns.

3. Medical Waste Management

A recent study by Johns Hopkins showed that medical waste could be decreased by more than 30 percent solely by proper waste separation of infectious (red bags) from non-infectious waste (clear bags). This is because as much as 90 percent of what ends up in red bags does not meet the criteria for red-bag waste. This is an area that you need to have your value analysis team look at, since at most healthcare organizations medical waste management isn’t effectively being managed or controlled.

Overall, we have documented that 7% to 15% can be saved in your supply spend vs. just 1,%, 2% or 3% on price alone if you decide to attack these three areas of your supply chain operations. There is nowhere else to go for double-digit savings -- wouldn’t you agree?
 

Warmest Regards,

Robert T. Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
Bobpres@strategicva.com
1-800-220-4274

Your Partner In Savings Beyond Price™,

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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.   Get Your FREE Copy Here

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