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Value-based health care in the operating room

Gap2For physician preference items (PPIs) used in the operating room (OR), success in standardization, controlling costs, and overall management of PPIs (PPIM) represents a challenge for hospital leadership. Cost-reduction is a matter of survival for many hospitals and as the aging population continues to grow and demand for PPIs increases, the issue of high-cost surgical supplies gains greater attention.

Value is defined as the ratio of function to cost. Supply costs have been growing at a faster rate than reimbursement with PPIs frequently bundled into global payments under Diagnosis-related groups (DRGs) and other capitation schemes. For high-cost surgical supplies like PPIs, the value questions being asked by hospital leadership are: What is it? What does it do? What does it cost per year? What else would do the job, and what would that cost? Value-based healthcare in the OR can increased by improving PPI device function or reducing its cost.

Clinically integrated, front-end data driven, and collaboratively managed system-wide efforts deliver answers and allow for engaging and aligning physicians across a health care system.