Hospital Resource Management- Spend & Value Analysis
Successful and profitable medical device companies use go-to-market strategies that cover a hospitals policy considerations in new technology procurement needs.
If implemented successfully, Healthcare facilities use the manufacturer’s Product Value Analysis (PVA) process coupled with improved methods as a basic structure to examine current perioperative processes, identify root causes of bottlenecks to patient flow and quality defects, implement potential solutions, and measure outcomes.
Once a healthcare facility uses spend & value analysis, it can reduce hospital operating costs and help the organization control the costs of certain functions. All PVAs should be based on pre-established objective criteria pertinent to the product to ensure the reliability and validity of the PVA evaluation results. An written PVA report to all stakeholders will facilitate the objective review of fact-based results, and recommendation of a product that best meets the hospital’s needs.
Just like the Lean and the Six Sigma model, the PVA process shares the principle that process improvement needs to be data-driven and evidence-based. Without the ability to track relevant information, it is difficult to identify problems or measure performance and improvement. PVA process analysis tools (e.g., kaizen event, value stream mapping, 5S visual controls, workflow diagrams) are used to help hospital staff observe, identify, and eliminate waste. Using the PVA process improvement tool for the OR can help ensure that the right equipment and consumables in the right place at the right time. The framework used in the PVA model includes:
o Identifying the value-creating steps in any process. o Focusing on eliminating waste in the system. o Empowering those who do the work in continuous improvement. o Focusing on the patient in the pursuit of perfection. o Defining and standardizing processes to reduce variation and error. o Emphasizing data as the driver of change (i.e., data influences behavior).
For example, a PVA model that focuses on the surgical performance indicators of a hospital or surgery center looks at:
First Case On Time or Early Subsequent Case On Time or Early Average Patient-In to Patient-Out Minutes Average Patient-In to Anesthesia-Ready Minutes Average Turnover Minutes Scheduling Accuracy Utilized 7 a.m. to 3 p.m. Same Day Add-On Weekdays Unplanned Closures Same Day Cancelled or Postponed Returns to Surgery Within 24 Hours Patients Screened Prior to Surgery Surgical Checklist/Timeout Compliance
In summary: the PVA model is a project-driven management approach to improve an organization’s products, services, and processes to reduce inefficiencies by continuously improving processes. It is characterized by its patient-focused approach, with emphasis on decision making based on careful analysis of quantitative data.