Spend Analysis & Validation SAV

A hospital’s operating rooms (ORs) are resource-intense and costly hospital departments. Why is it important to capture spending transaction-level data associated with third party purchasing processes? Because from time to time the health care supply chain system must identify opportunities for savings through a process known as a spend analysis.


Most physicians tend to use implantable medical devices (IMDs) developed by one particular manufacturer, often due to having trained in a hospital that used that vendor’s products, and are reluctant to switch vendors and learn to use another set of instruments and implants. Some physicians have consulting contracts with device manufacturers that provide payments. On their mission to reduce the cost of IMDs and other Physician Preference Items (PPI) areas of the hospital supply chain that are not commoditized, hospital executives use customized analytical tools that facilitate the identification of variances of procedures and supplies for physician ­driven IMD treatments.

Spend and value analytics is the next step in achieving greater cost reductions in clinical supplies, based on standardizing and reducing variability in supply usage by procedure, physician and service line.
An IMD spend and value analysis program covers 75% of the total opportunity in the hospital supply chain in regards to assessing potential cost containment for implantable medical devices (IMDs) and other surgical consumables. It may provide comparative analysis variables including reimbursement, supply cost, utilization and clinical resource data.

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