I recently corresponded by e-mail, with a MM who said he was working on a PPI initiative, instituted a new inventory reduction program, installed a new MMIS system and had started reviewing his purchasing service contracts to generate even more savings for his healthcare organization.

I then asked this MM if he was also targeting his utilization misalignments. In response, he said to me “when is ENOUGH – ENOUGH?” My answer to him by return e-mail was, if you want to squeeze the most out of your supply chain you need to do everything, everyday and in everyway possible to wring the towel dry on your supply expenses.

Why? Because healthcare organizations today need, more than ever before, every dollar that they can get their hands on in order to stem the tide of hyper-inflation on your operating budget which is being caused by our energy crisis, weak dollar and the credit crunch. You could call it a perfect storm!

Tipping point: Your hospital’s heating oil bill alone will cost your hospital 70% more this winter. If you are heating your hospital with gas it’s going up 65% and electric 5.2% over 2007 prices. Your GPO is sending you more price increases, than price decreases. Rather than give you even more examples, let’s just say that your prices are changing faster than you can keep up with them with no end in sight.

Now is the time for you to become a HERO in your management’s eyes.  They desperately need all the help you can give them to hold back this whirlwind of inflationary price increases. You can do it by squeezing even more out of your supply chain, especially in your utilization misalignments where you can save up to 12% of your total supply spend (supplies and purchase services) within 12 to 18 months.

Don’t miss this big opportunity to show your management how supply chain management can come to the rescue when the chips are down.

Your Partner In Savings Beyond Price™,

Robert T Yokl

Chief Value Strategist

Strategic Value Analysis® In Healthcare

Bobpres@strategicva.com

800-220-4274

P.S. If you want to hold back the inflationary spiral we are now experiencing, why don’t you “Test Drive” our Utilizer™ Dashboard that will show you where all of your utilization misalignments reside. 

P.P.S. Don’t forget to check out my new blog article “How Many Value Analysis Courses Have You Had?” This blog is all about what you need to do to become a professional value analysis leader and/or practitioner.