The Definition of Healthcare Spend Analytics™ is a 7-Part Process:
- A forensic line-item historical analysis of the last 12-months of spend from a specific vendor or category of spend. Healthcare analytics helps you understand healthcare costs and different payer expenses. When you review line items such as readmission expenses, mental health expenditures, and cybersecurity spending (think malware gap protection and network administrator salaries), you can spot where you’re paying too much and where you need to spend more money.
- A detailed contract dissection and connecting every dollar of spend to an agreement. With contract dissection, it’s easier to implement healthcare cost reductions, so you’re able to focus on patient outcomes.
- Categorization of all non-labor expenses. By categorizing these expenses, you’re able to review them across other United States healthcare industry brands and then establish benchmarks.
- You are benchmarking based on adherent line item details. No ratios benchmarking or benchmarking by bed size or annual revenue. Accurate benchmarking requires the line item details. When you set benchmarking goals for your big data, you can apply methodologies that help you hit and exceed metrics.
- Developing a complete cost savings opportunity analysis includes a contract compliance audit, off-contract spend, optimization analysis, and benchmarking exceeding industry norms. Whether you’re reviewing health insurance payer contracts, restructuring your human services department, or using big data to parse large swaths of electronic health records (EHRs), it’s essential to use opportunity analysis.
- It is creating a well-crafted pricing strategy that you will successfully negotiate. Your new pricing reduction strategies must empower your brand and work across the healthcare system. Mainly due to COVID-19’s impact in the United States, it’s essential to have effective pricing strategies. You can spot where you’re paying too much and where you need to spend more money.
- Put a disciplined process in place to manage each contract’s performance with line item spend focus. Your spend focus can impact patient care and facility care delivery. When you have disciplined processes in place, you’re able to navigate the US health care system better and free up capital that you can reinvest in patient care standards, medical devices, and big data prediction models.
Healthcare Spend Analytics™ Combines Deep Line-item Forensic Analysis of Historical Spending With Benchmarking, Categorization, and Contracting to Fully Optimize Your Procurement Spend.
Healthcare Spend Analytics™ is a thorough process of assembling and analyzing procurement data. Spend analysis uncovers pricing variations and trends in supplies and services through a systematic review of procurement data. Healthcare organizations utilize spend analytics on managing costs, reducing costs, consolidating vendors, present spend data to physicians, support value analysis teams, and drive efficiencies in inventory management.
Use Healthcare Spend Analytics™ to assess your procurement programs’ efficiency, look for waste in your spending, measure the profitability of suppliers, and make adjustments in your purchasing practices based on data analysis. Healthcare Spend Analytics™ helps you optimize the dollars spent on supplies and services while also being more efficient. When you’re addressing chronic conditions, comorbidity, mental health concerns, and surgical services, you must be able to focus on the patient experience while accounting for financial variables.
Health care purchasing performance is more critical than ever. Categorization Dashboards, RFP Tools, Software, and GPOs are not enough. The US health care system needs a Healthcare Spend Analytics™ approach.
Healthcare Spend Analytics™ is the combination of an automated process that analyzes and aggregates the detailed health care purchase information into easy-to-read graphical representations and visualization for the US health care system. The results of this analysis can be used to identify trends, approaches, and even possible waste in a practice. In addition, the proper visualization design tools can restructure key financial concepts into easily digested information. So whether you’re looking at mental health or disease control purchases, information, navigating Medicare and Medicaid contracts, or trying to find cost savings due to COVID-19, visualization tools can help.
Healthcare Spend Analytics™ is the primary foundation to building a center of health care excellence in the hospital supply chain. The results produced can be tracked and analyzed in many different ways: by fiscal year, month over month analysis, by a physician, by the hospital within a health system, vendor, line item, etc. With the proper intervention, you can improve health care standards, address readmission cases, improve clinician expenses, and focus your finances on innovative growth and expansion.
Healthcare Spend Analytics™ has the potential to uncover many more insights and opportunities. It shows you trends by departments within an organizational budget. It is a great way to create a budget and manage a budget – Healthcare Spend Analytics™ provides the process and information to understand your spend with line item granularity. When you can better sample and query your data, you can conduct more effective health plans and analyses
- VIE Healthcare has proven, deep, specialized expertise in complexities of purchased service and physician preference agreements, giving health care providers unrivaled insight into areas of potential cost savings. With our intervention, you can focus on specific health outcomes, quality of care improvements, and health system innovations. These innovations can then help promote greater patient enrollment, retention, and wellness.
- Purchased services and physician preference agreements can be highly complex. VIE Healthcare has specialized in analyzing spend related to purchased services for 22 years, and our highly experienced analysts know precisely where to look for cost savings. We can help decipher the details of your current agreements, including minimums, maximums, bulk discounts, inclusions, exclusions, and more, and then map those to the details of your contracts, including amendments. When you review existing agreements, it helps highlight potential cost reductions and additional savings that can satisfy stakeholders, patients, and other healthcare leaders.
- Our expertise uncovers every area for cost savings. A data analytics adherent can leverage data to form predictions, spot patient satisfaction improvements, and implement tools like machine learning to aid with cost reductions and risk management.
- VIE Healthcare’s patented technology gives you a complete picture of your purchased services and physician preference item spend so you can optimize cost savings. When you have a comprehensive overview of health care system baseline data, you can set predictions and improve the overall patient experience. Health care organizations need to leverage their available data in real-time to have the most significant impact.
- VIE Healthcare has developed a patented technology that rapidly extracts and analyzes the complete line-item details of every invoice from the past 12 months, giving you unparalleled insight into your actual historical spending.
- Our technology allows us to go far beyond simple benchmarking or spot-checking. We an determine where there have been over-charges, exactly what and how much of your spend is out of contract, and detailed areas where the costs can be improved beyond just at a macro-services level.
- This complete detailed spend analysis would take weeks or months to do manually, but our software allows us to it in days, at a very high level of accuracy.
- VIE Healthcare delivers cost savings in weeks, not months or years
- VIE has a proven process that rapidly analyzes large spend data sets for 4 types of cost savings opportunities.
- We support hospitals to analyze their 12 month historical spend data very quickly so that we can rapidly determine where the exact cost savings are.
- In many cases, we identify historical errors and over-charges that we can get refunded from vendors.
At VIE, we believe in hospitals having a solid supply chain department. As a result, wean help you in four ways to support your spend analytics projects.
- Work behind the scenes and provide your team with spend data analytics so you can utilize the precise analytics to negotiate new agreements and for your cost savings initiatives. Your spend data analytics can help you develop more accurate cost-savings estimates, calculate confidence intervals, and use data visualization to spot decision-making indicators. With this in mind, you’re more equipped to realize potential savings across your health systems.
- Work with you and your team on spend analytics projects. We will work with your data and present cost savings opportunities that you can immediately achieve. In addition, we will provide the cost savings funnel and roadmap for your cost savings goals.
- Provide outsourced spend analytics professionals. Whether you’re mitigating claims costs, spotting operating room cost reductions, restructuring your distribution network, or developing more robust engagement protocols and incentives, our spend analytics professionals can help you learn how to better leverage your finances.
- Provide spend analytics training for your team. Proper healthcare data analytics consulting training empowers brands and can lead to potential savings and a better patient experience. With the appropriate training, you can address your profit margins, leverage healthcare data, and work toward better outcomes for all of your patients.
Three Ways to Work with VIE Healthcare
- Benchmark a vendor contract – either an existing contract or a new agreement.
- We can support your team with their cost savings initiatives to add resources and expertise. We set a bold cost savings goal and work together to achieve it.
- VIE can perform a cost savings opportunity assessment. We dig deep into all of your spend and uncover unique areas of cost savings.