December 29


The First 3 Immutable Laws of Healthcare Value Analysis

By Danielle Miller

December 29, 2021

healthcare organization, Healthcare Value Analysis, hospital savings opportunity, hospital value analysis, value analysis, value analysis savings

1. THE LAW OF FUNCTION. There are many definitions, but you should start with the founding definition as a basis for your program. Value analysis is the study of function and the search for lower cost alternatives to meet a product or service’s required customer functions with equal or better reliability. Anything else is not the classic value analysis espoused by Lawrence Miles, the founder of value analysis and value engineering.

2. THE LAW OF TIME. The longer you take to save, the more it costs your organization. If you are working on a study with a projected savings opportunity of $100K, then every month longer you take on your study costs your organization $8,333. If your project takes 6 months instead of the intended 2-3 months, then your additional project time is costing your organization $25K more for that time. The faster you can save, the faster you can aid your healthcare organization’s bottom line.

3. THE LAW OF OWNERSHIP. Don’t give projects to the key stakeholders and owners of the product or service being studied. The thinking is that this is their world and they know the most about it, but that is flawed thinking since they already have had the opportunity to do something about this product but haven’t. You must give the product to a true VA Project Manager/Lead who can look at the project objectively with no bias. They can still involve the stakeholder but not let them drive the study.

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