The total cost of patient care is a winding path delicately traversed.
June 2023- The Journal of Healthcare Contracting
In past generations of Value Analysis, the focus was more on savings with contract renewals, the development of a capitated price model and matrices and price at the pump downward shifts, said Shaneka Demps, Manager, Value Analysis, BayCare Health System. “Compared to three years ago, Value Analysis today has shifted to finding value in utilization practice changes, eliminating unnecessary waste and establishing clinically appropriate criteria for use in some cases,” Demps said.
“Even more so, we are all traveling quickly down the road of total cost of patient care inclusive of reimbursement differences, length of stay reduction and the impact of hospital-acquired conditions. This road has become a winding path that must be delicately traveled with each Value Analysis project.”
In a conversation with The Journal of Healthcare Contracting, Demps discussed how Value Analysis professionals can effectively interact with and educate suppliers, as well as a glimpse into what the future of the profession may hold.
How do you interact with and screen suppliers during the Value Analysis process? What are the parameters you set for suppliers?
Demps: We interact with new or interested vendors via our supply chain interest portal. Vendors are able to reach out by a direct email to our Value Analysis Department or Contracting Team. Depending upon the category, vendors are set up with the appropriate Clinical Value Analysis RN or Contract Manager to have a brief conversation exploring a potential partnership.
Our goal is to connect that new vendor with our service line leader for a brief 10-minute introduction to our system and to describe how they may provide a solution to enhance our current product and services portfolio, improve quality and save costs.
How are Value Analysis appointments scheduled with suppliers? Do you prefer them to contact an internal champion first (e.g. – physicians, service line administrator, nurse leader) who then notifies you of a request?
Demps: We want them to contact us initially so we’re aware of the product or category they plan to promote. That way we can head off any issue with existing contracts and compliance. Once the initial review is cleared, then they would work with clinicians to identify a potential champion within the BayCare Health System. That champion would then be the best spokesperson when reviewing with the committee and would be willing to fill in the necessary clinical pieces, which is super helpful.
The challenge here is not to overstep, which may be quite easy to do. For example, leaving samples or doing a “small trial” would be against our policy. Every item has to be fully vetted and approved for trial by our Value Analysis Committee prior to use on a patient. That means that even if your clinical champion is excited about your technology and ready to give your product a try, they must follow our internal process and present you and your product to the committee before any trials may begin. This can be a bit of a sticky widget.
One last caution of approach with the “clinical champion” is not to overwhelm them. Being too assertive or not setting appointments with the clinicians could leave them feeling uneasy with your future attempts to communicate.
How do you educate suppliers? What are some best practices for suppliers to undertake in order to start the Value Analysis process?
Demps: Generally, our Supplier Information page on the BayCare Health System website provides specific information on our processes to help our vendor partners understand what to expect as well as what we expect from them. Our clinicians are also very savvy and fully aware of how the Value Analysis process works. They are excellent at steering the vendors in the right direction.
If there is a question, we are happy to connect with the vendor and speak about our process and learn more about how they envision a long-lasting partnership with our hospital system.
What one thing would you change to help improve the value analysis process in the future?
Demps: Today, we value true partnership with our vendor partners driven by clinical engagement with our service lines and physician champions. I believe that the Value Analysis process will always be an evolution. It must be nimble yet firm.
The one thing that I would change, with hopes to improve the process in the future, would be greater crowd sourcing and data sharing with similar IDNs. Sharing innovative ideas with each other and the blueprint that it took to achieve success could help every Value Analysis Team across the region and beyond. Every healthcare system has its own identity and DNA, but at the true center of each one, we are patient centric, we wish to be sustainable and to provide extraordinary care to our community.