Cost vs. Value

PPI utilization in healthcare facilities is growing for good reasons: Potential lower inventory cost with consigned items, desire to adopt the newest technology, maintaining physician satisfaction, physician practice variance and unpredicitable demand.

With the advent of healthcare reform, and reimbursement methodologies shifting to an outcomes-based approach, it is more critical than ever that hospitals improve outcomes through their medical device selection.

Operating rooms (ORs) are resource-intense and costly hospital departments. Implantable medical devices (IMDs) account for approximately $40 billion per year in revenue for manufacturers and are often introduced into the marketplace with little or no data on their effectiveness compared to similar devices. 

Hospitals are constantly challenged to meet the procurement needs of their physician while respecting a tight budget for IMDs and surgical consumables. Faced with the tremendous cost pressures associated with IMDs, alignment among hospitals and vendors  is maximizing efficiency which is essential to maintaining an economically viable service line in a medical facility.

Using the acroMIS SAV Spend Analysis and Validation program, the surgical unit now measures the costs and outcomes that each surgeon produces. As a result, clinical and administrative leaders are able to have a more constructive and better informed analysis about how best to standardize implants and treatment processes to reduce the costs of variability and limit the use of expensive devices and supplies that do not demonstrably lead to improved outcomes.