Facing management's supply dilemma with healthcare value analysis

Abstract

Value analysis helps address the healthcare cost conundrum that continues to plague healthcare organisations. Healthcare spending across the United States doubled between 1980 and 2011, reaching 17.9 per cent of the gross domestic product (GDP) with a potential to reach 20 per cent by 2020.1 Healthcare organisations are faced with a shifting paradigm where reimbursements are based on value versus volume. The focus is a twofold, patient-centric approach to improve patient outcomes, at the same time reducing healthcare costs. Value analysis is a blending of both financial and clinical outcomes that provides healthcare organisations the ability to solve these problems.