LEAN TECHNOLOGY VALUE TEAM CASE STUDY: THEN AND NOW

Prior to one of our clients establishing a technology value team at our direction, the president of this hospital, his CEO and his CFO would make all of the decisions on their $2-$3 million technology budget annually with some input from their clinicians and department heads.  They alone decided who got what, when and how, without truly understanding the requisitioner’s functional requirements, nuances or impact of their decisions on other department heads and managers!  This closed door decision making system was slow, painful, time consuming, risk adverse, fraught with errors and savings neutral. 

Once this hospital adopted the technology value team concept to make all of its technology purchase decisions, the hospital saved, on average, 17.5% annually on its technology budget – beyond price.  Their value-based decision making process was faster, better,  more cost effective and responsive to department heads needs and desires than the prior closed door system. 

For example, a savings of $156,923 was achieved when, after a functional analysis (following the classic tenants of value analysis and value engineering) conducted by one of the team’s project managers, they couldn’t value justify a $156,923 purchase of upgrades for the hospital’s laboratory information system.  In another technology purchase they saved $37,982.15 was saved on upgrades on the hospital’s pharmacy information system by restructuring the hospital’s medication administration process. $7,926.35 was saved on purchases of PCs after a functional analysis found that 95% of the hospital’s staff only needs Microsoft basic software on their PCs vs. every program that Microsoft has to offer.

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