What is Healthcare Value Analysis?
- Reduce Costs?
- New Product Selection?
- Improved Quality?
- Increased Value?
- Spend Management?
- Contract Administration?
- Evidenced Based Medicine?
- Getting Better Pricing?
- Technology Assessment?
- Physician Preference Product Management?
- Maximizing Spend?
- Reduce Waste?
- Contract Compliance?
- Inventory Management?
Defining Healthcare Value Analysis Following the Classic Tenets
Value Analysis is a creative, analytical, systematic study of the functions of products, services, technologies and processes. It's objective is to determine the lowest cost alternative that will provide equivalent or better performance of the required function.
Value Analysis is a system used to evaluate/select, at the lowest cost, an equivalent or better alternative to some product, service, technology or process under investigation.
Function is the job which the product, service, technology or process Does. Or it's reason for Being!
Function can be reduced to a two-word definition with measurable parameters. (Active Verb, Measurable Noun). E.g., Dry Hands, Inject Medication, Provide Warmth, Keep Time, Circulate Air, Protect Mattress, etc.
There are many definitions that have been applied to the hospital value analysis world as to what value analysis is and what it is not.
Value Analysis was originally created by a Value Engineer named Lawrence (Larry) Miles at General Electric in the 1940's. Here are some key points from Larry's teaching about value analysis.
When most people evaluate a product, service or technology, they only look at the product, service or technology's aesthetics and not its reason for being....FUNCTION.
The more one understands the functions of a product, service, technology or process, the more opportunities arise for dramatically reducing the cost of the product, service, technology or process. By substituting and/or in some cases eliminating an element of a product, service, technology or process with an equal or better product, service, technology or process.
Frequently Asked Questions About Value Analysis
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