5 Reasons Value Analysis Governance Is Important and What’s at Stake Without It
-
Kristin Motter RN, BSN, MBA, CHVAP, Strategic Sourcing and Value Analysis Consultant, Advisory Services
Effective healthcare value analysis (HVA) governance is crucial for organizations aiming to optimize costs, enhance patient outcomes, and mitigate risks. Without a structured program in place, organizations may face a variety of challenges that can hinder both financial and operational performance. Below are five key reasons why value analysis governance is essential and the potential risks organizations face without it.
- Cost Containment and Financial Efficiency
A robust HVA governance program ensures that financial decisions are made systematically, leading to cost reductions without compromising quality. By thoroughly evaluating products, services and technology, organizations can achieve more efficient spending.
What can go wrong: Without an HVA program, uncontrolled spending can lead to budget overspending, causing financial strain and limiting the ability to invest in critical areas.
- Improved Patient Outcomes
Engaging clinicians in the value analysis process ensures that decisions are made with patient care in mind. Clinician involvement leads to better product and service evaluations, ultimately enhancing patient outcomes.
What can go wrong: Without clinical engagement, organizations risk using suboptimal or ineffective products, which can compromise patient safety and care quality, potentially harming the organization's reputation.
- Standardization and Compliance
HVA governance promotes standardization across the organization, which contributes to more predictable clinical outcomes and easier training. It also enhances contract and regulatory compliance by holding teams accountable.
What can go wrong: Without standardization, inconsistencies in products and services can arise, leading to poor clinical outcomes and frustration among staff.
- Risk Mitigation
Identifying and mitigating risks associated with products, services, and equipment is a key function of value analysis governance. This protects organizations from financial and legal liabilities by ensuring safety, reliability and performance.
What can go wrong: Failure to assess risks properly can increase exposure to patient safety issues, supply chain disruptions, and operational challenges.
- Enhanced Supplier Relationships
Strong supplier relationships are built through the collaborative nature of the value analysis process. These relationships can lead to improved service levels, better pricing, and access to innovative solutions.
What can go wrong: Poor supplier management, resulting from the absence of governance, may lead to higher costs, less engagement in sourcing initiatives, and missed innovation opportunities.
Implementing an HVA governance program is essential to ensure financial efficiency, enhance patient outcomes, and mitigate risks, while fostering strong supplier relationships. Organizations that lack such a program put their financial health, patient care, and operational stability at risk.
Don’t miss our upcoming Becker’s Helathcare webinar with experts Suzanne Smith, BSN, RN (GHX Solution Advisor) and Karen Niven, MS, BSN, RN (President, Association of Healthcare Value Analysis Professionals), where they’ll discuss these concepts in more detail.
Be sure to check out the 2024 GHX-AHVAP whitepaper, based on results from the latest industry survey, to understand key HVA trends, pain points and solutions for now and in the future.