Comprehensive Cost and Margin Improvement

Comprehensive Cost

Cost Improvement Solutions That Reach All Corners of

Your Organization

Achieve Highest Total Value of Care

Experts predict that most health care organizations will

need to take 20%–30% out of their cost structure within the next two years to operate effectively. VHA is your partner for optimized performance across your entire organization. We provide guided expertise and thoughtful solutions to help you thrive in the new health care landscape.

Our Comprehensive Cost and Margin Improvement solution identifies your organization’s most challenging areas and finds the biggest opportunities for savings and process

improvement. From supply chain analytics and medication management to labor resource and compensation optimization, this unique solution helps reduce costs and improve productivity for the long term.

So whether you select a few specific components or choose the entire engagement, our Comprehensive Cost and Margin Improvement solution can help you achieve measurable results year after year.

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Improved total labor costs

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Improved supply and pharmacy savings,

including physician preference items

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Optimized medication management, leading to

improved patient care

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Improved operations, productivity and work

quality

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Increased patient, staff and physician

satisfaction

Five Steps to Improved Performance

Our Comprehensive Cost and Margin Improvement solution uses structured proprietary methodology for continued performance.

1. Assess opportunities to reduce costs and improve processes

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Collect data

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Conduct interviews

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Make on-site observations

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Analyze

2. Recommend cost and productivity initiatives

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Identify improvement

opportunities

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Present opportunities

to stakeholders

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Develop plan of action

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Facilitate buy-in

3. Implement initiatives

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Establish savings and

performance goals

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Engage staff and physicians

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Provide guidance for implementation

4. Measure performance

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Establish metrics for

measuring performance

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Produce reports reflecting

performance

Labor Resource Optimization

Supply Cost

Improvement _ImprovementOperational

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Comprehensive Cost and

Strategic Insights into Every Aspect of

Your Organization

Our Comprehensive Cost and Margin Improvement solution assesses all areas of your organization to reduce variation and drive enterprise-wide performance improvement. This approach combines a blend of three effective methods:

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Labor Resource Optimization

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Supply Cost Improvement

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Operational Improvement

Labor Productivity Improvement Management Structure Improvement Compensation Practices Improvement Benefits Optimization Case Management Labor Resource Optimization Labor Resource Lababor Optimization Opt

An Easier Way to Control Labor Expenses

Achieve Significant Results with Labor

Resource Optimization

If your health care organization is like most, 60% of your expense budget is allocated to labor. We offer Labor Resource Optimization, an interdisciplinary approach that improves labor costs, staffing, scheduling and work quality while increasing employee satisfaction.

Labor Productivity Improvement helps you reach

productivity targets while balancing cost, quality and service expectations.

Management Structure Improvement identifies and

implements opportunities to streamline management and increase efficiency.

Compensation Practices Improvement maximizes the value

of your organization’s compensation dollars by ensuring your policies reflect current market practice.

Benefit Program Optimization helps you develop a

competitive and financially sustainable benefit program that gives employees incentives to use resources responsibly.

Case Management helps you ensure that care is coordinated

and that related revenue cycle processes are managed.

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3%–7% annual reduction in labor costs

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1%–3% annual reduction in payroll and benefits costs

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Improved operations and work quality

Supply Cost Improvement Physician Preference Management Supply Chain Analytics Clinical Quality Value Analysis™ Medication Management Services

Physician

Practic

e

Variation

Supply

Variation

Maximize Opportunities across Your

Organization with Supply Cost Improvement

91% Satisfaction Rating

Our consulting services have a consistent member

satisfaction rating of 91%.

Produce Substantial Savings

We know that every hospital is different. That’s why our

Supply Cost Improvement methods are tailored to meet the specific needs of each hospital. We draw from our vast experience in contracting, industry-leading tools, proprietary methodologies and unmatched physician alignment to provide significant cost improvement from the operating room to the patient floor. Hospitals around the country have also benefited from improved supply utilization, increased productivity and enhanced care and culture.

Physician Preference Management identifies savings

opportunities and helps physicians manage costs and quality in high-impact service lines such as orthopedics, spine and cardiology.

Supply Chain Analytics offers a suite of powerful business

intelligence solutions that provide greater supply chain transparency and drive cost savings.

Clinical Quality Value Analysis™ improves supply costs by

engaging materials staff with clinicians and physicians in a consistent purchase-making process that impacts cost, quality and safety.

Medication Management Services supports the clinical

and operational aspects of the pharmacy, resulting in cost reduction, improved resource utilization and enhanced quality of care.

Supply Acquisition and Utilization Cost Reduction Patient Throughput Improvement Operational Productivity Improvement Reduction of Mortality, Infection and Re-admission Rates and Co-morbidity Documentation and Coding Improvement Operational Improvement $ Operational Ope Improvement Im Im 6

Operational Improvement Recovers Costs

throughout the Patient Journey

At the heart of our organization are members and the patients they serve. Operational Improvement uses data-driven methods to skillfully examine patient care from admission to discharge. This includes implant pricing and utilization, capital equipment, labor efficiencies, patient throughput, physician engagement and even appropriate reimbursement. Then, experienced clinical consultants use a performance-based approach with guided implementation and recommend strategies to create physician buy-in and involvement.

Savings Roadmap creates a financial, clinical and

operational savings plan, including strategies for implementation.

Workflow Optimization leverages Lean Six Sigma

methods for improvement in the emergency department, operating rooms, cath labs and other key departments.

Utilization and Throughput Improvement identifies

and implements strategies for more efficient patient throughput and optimal use of supplies and ancillary services.

Custom Pricing and Contracting Strategies blends

strategies and negotiations to obtain the best possible price on the items your physicians want by accessing the expertise of VHA’s supply contracting company, Novation.

VHA LYNX™ analytics solutions are embedded to deliver

powerful business intelligence that provides meaningful insight to savings opportunities. VHA LYNX solutions deliver quick time to value, provide process improvements and help sustain savings after your engagement has been completed.

Operational Improvement for the Highest

Total Value

Operational Improvement Enhances

All Dimensions of Patient Care

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Supply acquisition costs can be improved by up to 25%

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Utilization costs can be improved by up to 30%

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Patient throughput can be streamlined by up to 40%

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Operational productivity can be improved by up to 25%

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Supply acquisition prices

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Supply and ancillary

service utilization

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Patient throughput

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Operational productivity

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Clinical quality

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Documentation and coding

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Physician alignment and engagement

Let VHA Meet Your Savings and Operational Goals

Improving operational and clinical processes in a

timely manner requires bold thinking, expert advice and collaborative processes. That’s exactly what our Comprehensive Cost and Margin Improvement solution delivers, along with thoughtful guidance that empowers

your organization and the lives of those you serve. Our embedded analytics and ongoing advisory support provide continuous knowledge transfer, so you will continue to make improvements and sustain value after the engagement ends.

To learn more about how VHA can help you take control of your

supply chain and increase cash flow with Comprehensive Cost and

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Expertise for your every day

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Since 1998, VHA has completed more than 5,000 consulting engagements for hospitals and health systems, including some of the nation’s largest and most prominent health care providers. We are the largest pure health care consulting organization in the industry with more than 250 consultants who average 25 years in health care.