Healthcare Matters

Procter & Gamble is famous for pushing its best procurement practices down to its top and second tier suppliers. Why? Because it’s easier to demand savings from your suppliers when you give them the same effective money saving tools that you use. That’s a nice form of collaboration.

Because a big chunk of healthcare SCM performance is governed by the pace at which change can be driven and managed, it’s newsworthy –and logical– that UHC is “giving away” its change management technology (a.k.a. its value analysis program in support of provider value analysis teams) to its supply chain members.

UHC is an alliance of the nation’s leading nonprofit academic medical centers. It is based in Chicago, and counts 116 academic medical centers and 264 affiliated hospitals as members. Like VHA and Provista, it is partnered with Novation. UHC promotes its emphasis on providing members access to a variety of data driven programs and services, so the following press announcement should be of interest to a sizable portion of the academic provider market.

CHICAGO, April 16, 2012 /PRNewswire via COMTEX/ — UHC announced that a premier offering, the Value Analysis Program (VAP), is now available to UHC Supply Chain participants at no additional cost.

VAP helps academic medical centers identify and implement long-term, sustainable strategies for reducing nonlabor costs and improving supply chain efficiency. VAP emphasizes evidence-based decision making that, in addition to achieving cost savings, improves clinical practices and supports high-quality patient care.

“We are pleased to offer this proven program as a value-added benefit to UHC Supply Chain participants,” said Cindy Abel, senior director of UHC’s Value Analysis Program. “VAP will help our members proactively adopt practices that support disciplined supply chain and financial management and promote performance efficiency.”

VAP participants’ return on investment averages more than 10 to 1 when value analysis best practices are implemented. Since the program’s inception in 1997, participants have documented more than $500 million in cumulative savings.

UHC works with participating organizations to design a customized value analysis program that fits their specific needs, incorporating initiatives for optimizing the standardization and utilization of products and technology while improving related processes.

UHC provides member value analysis directors with education, mentoring and coaching, tools and templates, and networking opportunities to gain insights from their peers. Some VAP resources include the Value Analysis Initiative Database, annual value analysis performance scores, educational Web conferences and handbooks, templates for cost-benefit analysis and initiative tracking, and telephone and on-site support.

Current UHC Supply Chain participants can learn more about the program and enrollment by contacting Cindy Abel at (312) 775-4101 or abel@uhc.edu.

—Tom Finn