Value Analysis Non-Salary Expense Reduction Supply Chain Management Savings

A Profession Is Designated As Such When It Requires A High Degree Of Education, Specialized Training, Standards Of Practice And Certification

A new survey by the Association of Healthcare Value Analysis Professionals shows that salaries for value analysis practitioners™ (RNs with various titles and a variety of cost management duties employed by 100 of our nation’s hospitals and systems), now ranges from $40,000 to $120,000 annually, with the mid-range of $60,000 to $70,000. So does this mean that the value analysis profession has now arrived?

I know these numbers are realistic, because I have actually help hired Value Analysis Practitioners™ for hospitals and systems nationwide within these same salary ranges.

I would like to think so, but I feel we have “a long way to go” before we can call value analysis a profession in healthcare. Although, I believe that the forming of the Association of Healthcare Value Analysis Professionals is a good start and is moving us in the right direction.

A profession is designated as such when it requires a high degree of education, specialized training, standards of practice and certification.

For example, a Certified Public Accountant (CPA) is required to have a degree in accounting plus 4,000 hours of continuous experience in public accounting, under the supervision of a person licensed to practice public accounting. They then must pass a painstaking CPA examination.

Once an individual with these qualifications has passed the CPA examination they then must maintain a standard of practice as designated by their certifying agency to keep their license as a CPA.

Have you met a Value Analysis Practitioner™ with similar qualifications at your healthcare organization? I don’t thing so!

Value Analysis Practitioners™ have come a long way in applying the philosophy, principles and practices of value analysis, but as a profession we have a long way to go before we can call ourselves professionals. The high salaries that are now being paid by healthcare organizations to a select few Value Analysis Practitioners™ show that the field of value analysis is now being recognized as a vocation, which is a good thing.

Looking to the future as I see it, if Value Analysis Practitioners™ are to be recognized as a profession, they will need to have (at a minimum) a degree in business management, nursing administration, accounting or an equivalent of 5 years of experience in the field), 2,080 hours of specialized training under the supervision of a Certified Value Analysis Trainer™ and pass a rigorous examination to be certified in this discipline.

You might think that these qualifications are too demanding, but that’s what professionalism is all about – being able to show that you have the unique qualifications (by your education, experience and knowledge) that proves that you have a high degree of skill and knowledge in the field that you have chosen as your life’s work.

Where can I find meaningful benchmarks that will improve my material management department’s performance? C.H.

C.H., first of all, you need to decide what performance factors you want to improve. This process starts by finding out what your current performance is in your critical success factors (factors that your customers, not you, consider important to their success).

For example, what are your annual inventory turns in your storeroom, so that your finance department doesn’t have unnecessary cash tied up in inventory (26 turns would be ideal)? What percent of your purchases are being purchased through your GPOs (70% is the national average) to insure that your hospital’s products are price competitive? How long does it take to replenish your par levels, so your staffing can be at the lowest levels possible (20 minutes is the average nationally)? And what is your storerooms stock out percentage (98% would be perfect!), so that your customers have the needed supplies to do their job.

Once you have compiled a list of your critical success factors (through customer surveys and interviews) and your own current metrics, please get back to me by e-mail or phone and I will be happy to give you the answer to where you can find meaningful benchmarks to improve your material management department’s performance.

P.S. If anyone else has a question that you would like me to answer, please call or e-mail me and I would be delighted to answer it.

There is a new trend in the IT industry that healthcare organizations need to take heed. Growing numbers of companies and government agencies are finding that “Thin” computers save money and make sense!

By “thin” computers I mean that industry is taking PCs off their employee’s desks and replacing them with “thin client” systems, comprised of a computer screen, keyboard and mouse only. A central computer stores all of the data and programs that are needed to do the work of literally hundreds or thousands of employees. The average cost is $199.00 per workstation vs. $800 or more per workstation now.

And that’s not all! “Thin client” systems are controlled centrally (vs. decentralize), so support services for those workstations are cut to a bare medium, software licensing costs are reduced, virus protection is greatly enhanced and personal e-mails and internet shopping are cut out all together because big brother is watching.

Move To The Next Level Of Savings Performance "Beyond Price" With the “The Ultimate Value Analysis System”.

If you are ready to move to the next level of savings performance at your healthcare organization, I would strongly suggest that you consider purchasing my new book that is now available at my website http://www.strategicvalueanalysis.com/ultimatevalueanalysis.htm. In this book, I share with you my award winning system (that has saved 296 hospitals and 24 healthcare systems -- just like yours -- $ 337,342,945). The "The ULTIMATE VALUE ANALYSIS SYSTEM" will show you, step by step how to plan, organize, manage and attain superior savings in less time with greater success!

I am now in my 18th year as a healthcare supply chain and value analysis consultant and trainer (30 years in the healthcare business), and you can see from the gray hairs I have paid my dues. Which means I have learned a great deal about Value Analysis In Healthcare and have developed my quick and easy system that will enable you to avoid all the roadblocks, pitfalls and obstacles that come from developing a program yourself. I have trained hundreds of hospitals and healthcare systems in the practical and easy to use system of Value Analysis that I am offering here today. Now you too have the opportunity to utilize my secrets that leading healthcare organizations have learned from me to move them to the next level of savings performance (beyond price) for your hospital, system or alternate care facility.

Strategic Value Analysis In Healthcare
	Advancing Healthcare Organizations to the Next Level of Supply Chain Savings^TM
	STRATEGIC VALUE ANALYSIS^TM NEWSLETTER

Home Weekly Strategic Value Analysis Newsletter View Archived Strategic Value Analysis Newsletters Fast Target Savings Strategic^TM Value Analysis ValueNet Central^TM Value Analysis Software Training About HCP Client List Articles and White Papers Contact HCP FREE Weekly Email How To Tips Click Here to Access the NO Obligation Free Non-Salary Survey to find out what your savings opportunities are for your organization. Free Web poll for your Web site - freepolls.com		January 28, 2005 by Robert T. Yokl, President Value Analysis Practitioners™ Are Now Commanding High Paying Salaries, But Does This Mean That Value Analysis Can Now Be Called A Profession? *A Profession Is Designated As Such When It Requires A High Degree Of Education, Specialized Training, Standards Of Practice And Certification* A new survey by the Association of Healthcare Value Analysis Professionals shows that salaries for value analysis practitioners™ (RNs with various titles and a variety of cost management duties employed by 100 of our nation’s hospitals and systems), now ranges from $40,000 to $120,000 annually, with the mid-range of $60,000 to $70,000. So does this mean that the value analysis profession has now arrived? I know these numbers are realistic, because I have actually help hired Value Analysis Practitioners™ for hospitals and systems nationwide within these same salary ranges. I would like to think so, but I feel we have “a long way to go” before we can call value analysis a profession in healthcare. Although, I believe that the forming of the Association of Healthcare Value Analysis Professionals is a good start and is moving us in the right direction. What Is The Definition Of A Profession? A profession is designated as such when it requires a high degree of education, specialized training, standards of practice and certification. For example, a Certified Public Accountant (CPA) is required to have a degree in accounting plus 4,000 hours of continuous experience in public accounting, under the supervision of a person licensed to practice public accounting. They then must pass a painstaking CPA examination. Once an individual with these qualifications has passed the CPA examination they then must maintain a standard of practice as designated by their certifying agency to keep their license as a CPA. Have you met a Value Analysis Practitioner™ with similar qualifications at your healthcare organization? I don’t thing so! We’ve Come A Long Way, But We Have A Long Way To Go Too! Value Analysis Practitioners™ have come a long way in applying the philosophy, principles and practices of value analysis, but as a profession we have a long way to go before we can call ourselves professionals. The high salaries that are now being paid by healthcare organizations to a select few Value Analysis Practitioners™ show that the field of value analysis is now being recognized as a vocation, which is a good thing. Looking to the future as I see it, if Value Analysis Practitioners™ are to be recognized as a profession, they will need to have (at a minimum) a degree in business management, nursing administration, accounting or an equivalent of 5 years of experience in the field), 2,080 hours of specialized training under the supervision of a Certified Value Analysis Trainer™ and pass a rigorous examination to be certified in this discipline. You might think that these qualifications are too demanding, but that’s what professionalism is all about – being able to show that you have the unique qualifications (by your education, experience and knowledge) that proves that you have a high degree of skill and knowledge in the field that you have chosen as your life’s work. MAILBOX Where can I find meaningful benchmarks that will improve my material management department’s performance? C.H. C.H., first of all, you need to decide what performance factors you want to improve. This process starts by finding out what your current performance is in your critical success factors (factors that your customers, not you, consider important to their success). For example, what are your annual inventory turns in your storeroom, so that your finance department doesn’t have unnecessary cash tied up in inventory (26 turns would be ideal)? What percent of your purchases are being purchased through your GPOs (70% is the national average) to insure that your hospital’s products are price competitive? How long does it take to replenish your par levels, so your staffing can be at the lowest levels possible (20 minutes is the average nationally)? And what is your storerooms stock out percentage (98% would be perfect!), so that your customers have the needed supplies to do their job. Once you have compiled a list of your critical success factors (through customer surveys and interviews) and your own current metrics, please get back to me by e-mail or phone and I will be happy to give you the answer to where you can find meaningful benchmarks to improve your material management department’s performance. Bob Yokl 800-220-4274 bobpres@strategicvalueanalysis.com P.S. If anyone else has a question that you would like me to answer, please call or e-mail me and I would be delighted to answer it. ”Thin” Computers Save Money And Make Sense! There is a new trend in the IT industry that healthcare organizations need to take heed. Growing numbers of companies and government agencies are finding that “Thin” computers save money and make sense! By “thin” computers I mean that industry is taking PCs off their employee’s desks and replacing them with “thin client” systems, comprised of a computer screen, keyboard and mouse only. A central computer stores all of the data and programs that are needed to do the work of literally hundreds or thousands of employees. The average cost is $199.00 per workstation vs. $800 or more per workstation now. And that’s not all! “Thin client” systems are controlled centrally (vs. decentralize), so support services for those workstations are cut to a bare medium, software licensing costs are reduced, virus protection is greatly enhanced and personal e-mails and internet shopping are cut out all together because big brother is watching. *WARNING: Your Management Is Looking For New Savings Reductions:* DON’T WAIT UNTIL YOU ARE MANDATED TO MAKE “BIG” SAVINGS HAPPEN! Be Proactive! Don’t Wait For A Crisis To Unfold Or Take You By Surprise! Move To The Next Level Of Savings Performance "Beyond Price" With the “The Ultimate Value Analysis System”. If you are ready to move to the next level of savings performance at your healthcare organization, I would strongly suggest that you consider purchasing my new book that is now available at my website http://www.strategicvalueanalysis.com/ultimatevalueanalysis.htm. In this book, I share with you my award winning system (that has saved 296 hospitals and 24 healthcare systems -- just like yours -- $ 337,342,945). The "The ULTIMATE VALUE ANALYSIS SYSTEM" will show you, step by step how to plan, organize, manage and attain superior savings in less time with greater success! I am now in my 18th year as a healthcare supply chain and value analysis consultant and trainer (30 years in the healthcare business), and you can see from the gray hairs I have paid my dues. Which means I have learned a great deal about Value Analysis In Healthcare and have developed my quick and easy system that will enable you to avoid all the roadblocks, pitfalls and obstacles that come from developing a program yourself. I have trained hundreds of hospitals and healthcare systems in the practical and easy to use system of Value Analysis that I am offering here today. Now you too have the opportunity to utilize my secrets that leading healthcare organizations have learned from me to move them to the next level of savings performance (beyond price) for your hospital, system or alternate care facility. About the Author 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, Non Salary Expense Reduction 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’ Healthcare Supply Value Chain”. _____________________________________________________________ COPYRIGHT 2004 - THE HCP GROUP, LTD. - ALL RIGHTS RESERVED
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