“Beyond Cost and GPO Contracts: A Comprehensive Approach to Clinical Value Analysis”

In nearly 90% of our interactions with hospital and clinical surgical teams seeking a more effective surgical positioning solution, we consistently encounter two fundamental questions after they recognize the benefits of our platforms: “How much does it cost?” and “Is it on GPO contract?” These questions often feel scripted, as if clinical teams are compelled to ask them, suggesting that financial considerations alone will resolve their challenges. This focus on cost overlooks the critical opportunity to enhance clinical outcomes and safety, not only for patients but also for the clinicians who utilize our products.

The reality is that clinical teams and supply chain reps seldom see how intertwined their roles truly are. Yet, both groups often lack a clear grasp of how surgical procedures are billed or which critical areas need refining to boost the ROI on procedural reimbursements—especially with the rise of BPCIs. They tend to view product costs as just another expense, missing the real value they can deliver. That’s where clinical value analysis steps in, provided it’s given the chance to take place and can break through the barrier of those two initial hurdles. Not everything fits a commodity mindset—forcing it does a disservice to clinical care and safety, particularly when innovation’s impact on patient outcomes and enhanced safety isn’t even part of the equation.

The great news is that when we get the opportunity to conduct a trial paired with an in-depth clinical value analysis, our success rate approaches 100%. On the rare occasions when we don’t quite hit the mark, it’s typically due to someone higher up in the supply chain realizing we’re not under contract, or because of the modest price premium our products carry compared to generic alternatives—despite the exceptional features we bring to the table. The ironic twist? Our products allow us to track metrics in the electronic health record, clearly demonstrating the return on investment and highlighting the losses tied to short-sighted, cost-obsessed thinking.

As a clinically founded company with over 20 years of experience in anesthesia and operating room settings, we understand how these issues affect the care and safety of both patients and caregivers. When the emphasis is placed on cost rather than true value, cost-benefit analysis, or outcomes, everyone loses.

Here are a few tips for Value Analysis teams to consider:

1. Establish a Multidisciplinary Team: Assemble a diverse group of stakeholders, including clinicians, financial analysts, supply chain professionals, and quality improvement experts. This team will provide a comprehensive perspective on the clinical and economic implications of the devices being evaluated. Make sure GPOs employees are not on this committee. They only want to steer contract compliance for admin fee capture!

2. Define Clear Objectives: Determine the goals of the value analysis process. Are you looking to reduce costs, improve patient outcomes, or enhance operational efficiency? Clearly articulated objectives will guide the analysis and decision-making process.

3. Utilize Evidence-Based Data: Leverage clinical data, literature reviews, and real-world evidence to support the evaluation of medical devices. Look for peer-reviewed studies, clinical guidelines, and meta-analyses that can provide insights into the devices’ effectiveness, safety, and overall value.

4. Conduct Total Cost of Ownership Analysis: Go beyond the initial purchase price and consider the total cost of ownership (TCO), which includes maintenance, training, disposables, and potential adverse events. This comprehensive view helps in understanding the long-term financial impact of the device.

5. Involve Clinicians Early: Engage clinicians in the evaluation process from the beginning. Their firsthand experience with the devices will provide valuable insights into usability, effectiveness, and potential challenges.

6. Prioritize Patient Outcomes: Focus on patient-centered outcomes when evaluating devices. Metrics such as quality of life, recovery time, and complication rates should be considered alongside cost-effectiveness.

7. Benchmark Against Alternatives: Compare the device being analyzed with similar products or interventions. This benchmarking will help identify whether the device offers superior value in terms of clinical outcomes or cost savings. We suggest side by side clinical trials to highlight the clinical differences of the products being determined, as many benchmarking software programs look at comparative costs, not outcomes or improved metrics for safety and efficacy.

8. Incorporate Feedback Loops: Create mechanisms for ongoing feedback from users after implementation. This allows for continuous evaluation of the device’s performance and can inform future purchasing decisions.

9. Stay Informed on Regulatory Changes: Keep abreast of changes in regulations, reimbursement policies, and clinical practice guidelines that may affect the value of medical devices. This knowledge will help ensure that your analysis remains relevant and accurate. For example, there are 10 states with safe patient handling laws, and yet, very rarely is this considered when choosing surgical positioning products. You also may want to understand if any conflicts of non compliance impacts CMS payments, as part of the rules of participation require hospitals to follow all local, state, and federal laws designed to protect healthcare workers and patients.

10. Document and Communicate Findings: Thoroughly document the analysis process and results. Communicate findings clearly to stakeholders, using visual aids and summaries to facilitate understanding and drive informed decision-making.

11. Foster a Culture of Value Analysis: Encourage a culture within the organization that prioritizes value analysis in procurement decisions. Training and resources should be made available to ensure that all team members understand the importance of evaluating clinical value. By following these tips, healthcare organizations can enhance their clinical value analysis processes.

In essence, let clinicians drive these decisions—not supply chain managers or third-party middlemen—since their priorities don’t align with the daily struggles caregivers encounter on the front lines of patient care.