Optimizations or Innovations?
I want to talk about why I believe optimization is more important than innovation for healthcare organizations.
Innovation is important, but we can get so much value out of cost optimization.
Optimization offers numerous benefits including:
It allows us to take a deep dive and become an expert on a specific cost savings area.
It allows us to see nuances and pinpoint opportunities we might not otherwise see.
Optimization enables us to do the deep focus thinking work and uncover cost savings opportunities we couldn’t have imagined.
In my experience with VIE Healthcare®, it is optimization in our work with hospitals that have realized the most dramatic cost savings.
An example of optimization is in purchased services.
Our patented technology Invoice ROI™ offers reconciliation, optimization and intelligence to guarantee margin improvement in your purchased services spend.
Invoice ROI™ enables your hospital to view spending trends and achieve significant cost savings.
It delivers actionable intelligence for pro-active monthly management of your outsourced purchased services spend.
Another example of optimization is in Physician Preference Items (PPIs).
PPIs comprise some of the most expensive items in your hospital and account for between 40-60% of a hospital’s total costs.
At VIE Healthcare®, we have created a comprehensive five step process for PPI optimization.
You can focus on optimization in many other areas, including supply chain, and telecommunications and IT.
I encourage you to take a deep dive into a project and ask yourselves how you can optimize this work and maximize the cost savings available for your hospital.
Innovation is something new, something we do differently, creating something that doesn’t exist.
Optimization focuses on making something as effective and as successful as we can.
It’s about getting the most value out of process or pricing.
The most successful healthcare organizations know how to optimize the purchasing process for every product.
Reach out at lmiller@spendmend.com to discuss your cost savings goals and how we can support and accelerate cost savings opportunities in your organization.
