By Nick McKinney, Manager of Analytics, OC Reilly Inc.
(April 30, 2018)—“Value” can be one of those slippery words, the definition of which takes many possible forms, depending on the perspective and intentions of the person using it.
It becomes imperative, then, for a clear definition to be stated so that efforts and decisions are made that truly generate value for an organization. Without this clarity, a lot of misdirected time, resources, and energy can be expended unnecessarily.
“In recent years, many health care organizations have replaced their product standards committee with a value analysis committee (VAC),” reads a portion of an article, “Looking Beyond Cost Control,” in the September 2017 edition of HFM magazine.
So far, so good, right? But next the story begins to identify the real issue in play.
“Unfortunately, however, most VACs still focus on product analysis. Few of these committees have fully embraced the mission of improving cost, quality, and outcomes. Finance leaders can help improve performance by engaging with and supporting efforts to reorient toward the goals of this Triple Aim.”
The article then makes a concrete recommendation on how to address the problem.
“Visionary supply chain leaders are a natural ally during this transition. They offer critical expertise in cost issues and can contribute valuable perspectives on supply issues.”
Product standards must be safeguarded and kept high, of course. But that’s only one element of the full picture regarding value.
Improving cost, quality, and outcomes – the very heart of what expert supply chain professionals are called on to do, and the most accurate definition of value. Seeking the objective perspective of an independent health care supply chain advisor can add even more value to this process.
© 2018 OC Reilly Inc.