1 / 22

Adopting a Cost Benefit Methodology in Supply Chain Decision Activities

Adopting a Cost Benefit Methodology in Supply Chain Decision Activities. William Stitt, CMRP, FAHRMM, CPHM Corporate Director, Materials Management University Community Health Tampa, Florida. Overview.

vonda
Télécharger la présentation

Adopting a Cost Benefit Methodology in Supply Chain Decision Activities

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Adopting a Cost Benefit Methodology in Supply Chain Decision Activities

  2. William Stitt, CMRP, FAHRMM, CPHMCorporate Director, Materials ManagementUniversity Community HealthTampa, Florida

  3. Overview • The decision making process related to healthcare products and equipment is dynamic, and many cases personal to the requestor. • This session will focus on an objective cost benefit analysis approach to evaluating new projects and conversions.

  4. Key Points • Discover the “Value Proposition” • Concurrent consideration of project factors. • Operational • Clinical • Financial • Think quantifiable, not conceptual. • Neutrality from a supply chain perspective. • Validation determines success.

  5. Types of Initiatives • Cost Neutral • Cost Savings • Cost Increase • While the methodology is consistent, the approach may change . . .

  6. Common Methodology

  7. Cost Application Is cost the same, higher or lower? Is the quality better, worse or the same? Has functionality or benefit increased? • Revenue • Lower Cost per Procedure • Reduced LOS • Reduced Labor • Reduced Turnaround time • Are there? • Contract Considerations • Logistical Issues • Staff Education/Training • Other Issues

  8. Validation • Are the assumptions related to cost, quality and functionality being actualized following implementation? • Validation is critical to determine whether or not your evaluation methodology is sound.

  9. Methodology • Every initiative will have a specific factor that influences the rationale for the decision, but concurrent consideration of all criteria is important.

  10. Process Considerations • Cost • Utilization • Workflow • Clinical Quality • Efficiency • Revenue Enhancement • Labor Resources • Service Delivery

  11. Other Issues to Consider • Who has ownership and to what extent? • Levels of “Granularity” in the analysis process. • Consistent formatting and information delivery lends credibility. • Determine the level of Administrative involvement.

  12. Product Marketing Gone Bad! • Project-Hand Sanitizing Agent w/motion dispenser • Factors • Increased Cost Per Use ($10k annually) • Non contracted vendor • No clinical benefit • Rationale • Reduced usage • More efficient product delivery • Approval Criteria -Labor Savings & Efficiency

  13. Quantify This! • Each product would reduce the hand cleanliness process time by 6 seconds. • 32 processes day X 6 seconds=192 seconds X 210 nurses=40,320 seconds saved (672 minutes/day) • 11 hours day X hourly nursing salary of $24.50 = Daily Savings of $269.50 or 1.37 Nurses!! • Vendor project ROI=38 days and increased productivity of nurses in the first year of 22%

  14. Other Issues to Consider • Labor reallocation is normally not a good factor to consider in a cost benefit analysis, unless there is a significant change to workflow or positions are reduced. • Be cautious of vendor marketing claims in preparing your cost benefit analysis. It needs to be based on your operation and the appropriate factors.

  15. Analysis Tools

  16. Preliminary Analysis Materials Project Prioritization Form with Drop-Downs.doc

  17. Cost/Benefit Analysis - Equipment Technology Assessment CBA Example 2007.xls

  18. Cost Analysis Detail Worksheet CBA Cost Analysis Detail Item Example 2007.xls

  19. Final Analysis Example Aquamantys Tissue Device Example 2007.xls

  20. Final Points • Be objective • Use real data • Apply reasonable assumptions where necessary • Don’t let any one facet of the project determine the outcome • Embrace Change!

  21. Summary • Adopting a cost benefit analysis approach to your organization can be a valuable tool and will help you to engage your clinicians in the decision making process for supplies and equipment.

  22. In Closing Your comments and questions are welcomed at this time. Thank you for attending the session. William P. Stitt WStitt@mail.uch.org

More Related