SURGICAL/CRITICAL CARE
• PERC (pulmonary embolism rule-out criteria) averaged $1,443 a case, and was reduced to $1,016 a case for $5,124 in annual savings
• Lap chole (laparoscopic cholecystectomy) averaged $641.00 a case, and was reduced to $429 a case for $75,189 in annual savings
• Lap Appe (laparoscopic appendectomy) averaged $786.49 case, and was reduced to $747.60 a case for $22,284 in annual savings Warman and Hontz add that they continue
to explore further cost savings in fi scal 222. Cost-cutting infusion
PBS though Supply Chain Value Analysis emphasizes the Quadruple Aim principles daily, according to Warman.
“Our dashboard creation and surgical
scheduling are examples of ‘Better Health and Better Care,’” he indicated. “Examples of ‘Better Cost’ can be found with our expe- rienced charge posters and value analysis team. They provide daily audits to ensure the accuracy of our supply and implant usage in all cases. FY2021 case charge posting accuracy was over 95% for the entire team. Our team is recognized as an important and critical asset to our Perioperative Nursing, Anesthesia and Surgical colleagues across the health network.”
Through PBS’ efforts with clinicians and administrators, annual cost reductions ranged from more than $925,000 to more than $3.2 million during the span of a six-year period, 2015 to 2021, according to Warman. More than $2.5 million in savings was generated in FY2021 alone, he added. Since beginning these efforts, Lehigh Valley has booked more than $10 million in cumula- tive cost savings. Lehigh Valley participates the regional group purchasing organization AllSpire that works with HealthTrust as its national GPO. “We continue to empower our front-line
colleagues to fi nd savings across the system,” he added.
All photos courtesy Lehigh Valley Health Network Moving Toward Clinical Integration
Purchasing decisions based on clinical integration with supply chain
Identify waste
Guide clinical strategy and advance safe and quality patient care
Strategic Plan inclusive of pricing, tier optimization, vendor and SKU standardization, product/ service elimination, and clinical utilization
Marry the fi nancial with the clinical
Care redesign focused on evidence-based protocols
In fact, Lehigh Valley builds the Quadruple Aim into its annual performance evaluations so that staffers are assessed on better care, lower costs and patient and employee satisfaction.
“Value Analysis is a systematic, objective, evidence-based process that brings together stakeholders having product and clinical use, knowledge, financial analysis and purchasing contracting expertise to reduce overall cost while maintaining or improv- ing quality,” he noted. “We are making quality decisions and balancing the needs of multiple constituents in the healthcare delivery systems. In short, value analysis is the conduit to accomplishing the quadruple aim in today’s healthcare environment. “LVHN performance evaluations allow our leaders to provide attainable goals that match LVHN corporate goals,” he contin- ued. “Based on each goal achieved by the individual determines a fi nal score.” Warman’s and Hontz’s teams strive for clinical and operational integration, too. Although many defi nitions and explana- tions of clinical integration remain avail- able throughout the industry, Lehigh Valley explains its own effort through a visual representation of a golden star
Culture of accountability and engagement
Strategic versus reactive supply chain
Holistic Total Cost Management (TCM) approach — cost, quality, and outcomes
Identify products that produce best outcomes
Meaningful and actionable analytics with benchmarking data and physician-level reporting
Corporate driven strategy with facility-level led implementation
Figure 1
[See fi gure 1], as well as through seven key tenets. • Accountability comes from the entire team • It does not come from top down or bottom up; it requires everyone to be on the same page
• Transparent data are shared in standard meetings
• Individual interventions are sent for outlier performers
• We enlist clinical leadership and physician champions in opportunity identifi cation and communication across all initiatives
• All data is vetted with our VA team, sur- geons, and Operating Leadership prior to presenting to all teams, which is critical to fostering colleague and surgeon trust
• We include all formulas, calculations and methodologies in presentations Hontz and Warman expresses pride in their team’s accomplishments to date. “The colleague engagement and experi- ence provided by this team is endless, as observed by their achievements,” they agreed. “The daily effi ciency, drive, pride and innovation of this team of incredibly enthusiastic colleagues supports LVHN’s mission to heal, comfort and care for the people of our community.” HPN
Clockwise: Eric Ross, Trevor Eisenman, Coy Ackerman, Alexandre Warman, Janelle Alfano, Tamara Gates, Keith Carl, Allison Hontz
12 March 2022 • HEALTHCARE PURCHASING NEWS •
hpnonline.com
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