Message from AVHAP Treasurer

A Glimpse into the Future….

Whenever I interview a prospective employee, I ask, “Where do you see yourself in five years?” This reflection prompts me to consider healthcare value analysis and its trajectory over the next five years.

Healthcare Value Analysis (VA) is anticipated to evolve significantly in the next five years, propelled by technological advancements, shifting healthcare policies, and increased pressure to enhance cost-effectiveness while maintaining or improving patient outcomes. Here are several key areas where we may observe VA evolving in the next five years:

1. Increased Integration with Technology and Data Analytics

Artificial Intelligence (AI) and Machine Learning (ML): These technologies are expected to play a more prominent role in healthcare VA, assisting in analyzing complex datasets, predicting patient outcomes, and optimizing purchasing decisions. For instance, AI could identify cost-effective medical devices and pharmaceuticals by analyzing clinical data, patient outcomes, and price trends.

Real-Time Data and Predictive Analytics: Real-time product usage and monitoring of patient outcomes can lead to more accurate value analysis. Predictive analytics could forecast a healthcare product or service's long-term value beyond immediate costs.

2. Greater Focus on Patient-Centered Value

Outcome-Based Metrics: VA will increasingly consider patient outcomes, such as quality of life, treatment effectiveness, and long-term health impacts, alongside traditional metrics like cost. As healthcare progresses toward value-based care, integrating these factors will be essential.

Patient Experience: Assessing how products and services affect patient satisfaction and experience will become central to VA processes.

3. Collaboration Across the Supply Chain

Partnerships with Manufacturers and Suppliers: Healthcare organizations may engage in deeper, more strategic partnerships with vendors to ensure product selections that deliver clinical and economic value. Transparency in pricing and value propositions will grow in importance as VA evolves.

Collaborative Decision-Making: Value analysis may become a more cooperative process involving clinicians, supply chain professionals, patients, and payers in the decision-making process.

4. Greater Emphasis on Sustainability and Environmental Impact

Eco-Friendly Products: As sustainability becomes a fundamental consideration across various industries, healthcare is likely to focus more on product environmental impact. Value analysis could incorporate sustainability metrics, such as the carbon footprint of medical devices or pharmaceuticals, into its decision-making processes.

Circular Economy Models: Healthcare organizations may increasingly embrace circular economy practices, emphasizing the reuse, recycling, and repurposing of medical products, which will influence VA considerations.

5. Improved Standardization and Best Practices

Data Standardization: VA processes will likely become more standardized, with more transparent benchmarks for assessing the total cost of ownership (TCO) and return on investment (ROI). Healthcare providers may utilize industry-wide databases to compare product efficacy and costs more consistently.

Best Practice Frameworks: National or international standards for conducting value analysis could emerge, providing healthcare organizations with standardized tools and frameworks for more effective value assessment.

6. Regulatory Changes and Policy Shifts

Reimbursement and Value-Based Care Models: As reimbursement models progressively shift toward value-based care, VA will increasingly influence the selection of products and services that align with these new models. Healthcare providers must demonstrate that their investments yield improved patient outcomes at a lower cost.

Regulatory Compliance: VA is likely to evolve into a more formalized process, with regulatory bodies potentially requiring evidence of value analysis for certain purchasing decisions, especially for high-cost items.

7. Increased Training and Expertise

Specialized Roles in Healthcare Value Analysis: As the complexity of healthcare products and the demand for cost-effective care rise, we may see an increase in specialized VA roles. Professionals will likely require advanced training in both clinical outcomes and financial analysis.

Cross-Functional Teams: The future of VA may involve increasingly diverse teams, including data scientists, clinicians, financial analysts, and even patient advocates, collaborating to drive decisions.

8. Broader Scope of Application

Beyond Product Selection: Healthcare VA could expand its focus beyond traditional product evaluations to include services, technologies, and even administrative costs, emphasizing the holistic value provided by all facets of healthcare delivery.

Healthcare Value Analysis is expected to be more data-driven, patient-centered, and integrated across healthcare organizations and the broader supply chain in five years. With an increasing emphasis on sustainability, long-term outcomes, and collaborative decision-making, VA will play a pivotal role in enhancing the overall value of healthcare systems while managing costs.

Sincerely,

Sharon Roberts, BSN, RN, CVAHP™
Treasurer, Board of Directors
AHVAP