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SPANNING THREE DECADES OF VALUE MANAGEMENT LEADERSHIP

February 5, 2003

Pushing And Pulling Your Clinicians In Every Direction, But Forward -- Won’t Give You The Savings Results Your Are Looking For

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Robert T. Yokl - President - The HCP Group, Ltd.

“All Sustainable Changes In Your Supply/Value Chain Must Be Cultural Ones --Not A One Time Event”

A recently released study conducted by large GPO found that hospitals can SAVE millions in supply expense by engaging their clinicians in their cost-reduction efforts, but for the change to be SUSTAINABLE it must be a cultural one  -- NOT A ONE TIME EVENT.  Most healthcare organizations however are still pushing and pulling their clinicians in every direction, but FORWARD.   How do you explain this DICHOTOMY in healthcare today?

First of all, healthcare organizations still believe in the myth that STANDARDIZATION is the only road to success in supply/value chain management. Secondly, they believe that clinicians won’t change their METHODS and PRACTICES, because they are inflexible, unyielding and uncompromising on most issues related to changing of their products, services and technologies.

 

Standardization: A Self-Defeating Paradigm

Instead of buying into the conventional wisdom that STANDARDIZATION is the only road to success in supply/value chain management, healthcare organizations need to focus on CUSTOMIZATION of all of the products, services and technologies that they purchase to truly reduce their total cost of acquisition to disposition.

For instance, WHY should we care (or stage battle lines with our clinicians) if we purchase from THREE OR FOUR pacemaker companies that are PREFERRED by your clinicians, when our real goal should be to customize these pacemakers to their exact customer’s functional requirements. By doing so, you will find that the unit cost of your pacemakers will DROP, on average, by $1,000 to $2,000 per pacemaker. This is because the pacemakers you are buying now, with few exceptions, aren’t MEDICALLY INDICATED or functionally required for the purpose they were intended! This is a much better strategy than PUSHING OR PULLING your clinicians in the ever direction – but forward – with the process of standardization.

 

THE MYTH: Clinicians Won’t Change Their Methods & Practices

Yes, it is true that clinicians want control over their DESTINY or FATE in almost every situation you encounter with them and that they are inflexible, unyielding and uncompromising on most issues related to changes that would effect their products, services and technologies.  This is because they have HIGH STANDARDS that they won’t compromise just to SAVE a few dollars.

On the other hand from my experience, clinicians are amenable to investigating the products, services and technologies that they are buying to insure that they have the right FUNCTIONAL SPECIFICATIONS, so that they can provide their patients with cost effective quality care.

With few exceptions, because of their HIGH STANDARDS clinicians want to be buying cost effective products, services and technologies and eliminate any WASTE and INEFFICIENCIES in their supply/value chain.  They are also AGREEABLE to discussing any variation or deviation from industry norms that are identified through VALUE STUDIES, since they want to do WHAT’S RIGHT for their patients and employer. They must however be allowed to make that decision themselves from EVIDENCED BASED facts.

 

No Sustainable Change Is Impossible To Make 

No sustainable change is impossible to make if you apply the old axiom, WHAT’S IN IT FOR ME”.  When you can show your clinicians that, IT’S ALL ABOUT THEM, when you are investigating or proposing alternate products, services and technologies that they are now utilizing, you are on the road to sustainable change. This is because clinicians like the CHANGE they PARTICIPATE in, are EXPECTING, find to be NECESSARY, isn’t for CHANGE SAKE alone and is a DECISION that they make THEMSELVES.

 

Robert T. Yokl, President, The HCP Group, Ltd., has over 35 years of experience as a consultant and manager in the field of Supply/Value Chain Management and is one of the country's leading healthcare experts in value analysis, value engineering and materials management. He is the developer and program leader of the award winning Certified Value Analysis Practitioner Training Program™. Mr. Yokl is also the developer of the healthcare industry's leading ValueNetCentral™ Value Analysis Software. Over the past two decades he has trained thousands of healthcare managers in his patented Strategic Value Analysis™ and Team-Based Project Management™ processes and has assisted scores of organizations in developing their own value management programs. He has published six books, videos and audios on supply/value chain management. His latest book being, “ Strategic Value Analysis™: The #1 Smart Strategy for Taking Cost Out of a Healthcare Organizations’ Supply/Value Chain”.

 

 
Advancing Healthcare Organizations to the Next Level of Supply Chain SavingsTM