SVAH Solutions Launches SupplyValidator to Help Healthcare Organizations Hold Their Vendors Accountable for Their Savings Gains and Guarantees over Life of Contacts

Robert T. Yokl, President and Chief Value Strategist, SVAH Solutions (SVH) announced today the release of its new SupplyValidator™ Automated Supply Chain Savings Auditor. Yokl stated that, “We see a new trend bubbling up at all healthcare organizations: Value-Based Performance Contracts. This is where directors of supply chain mandate that their vendors guarantee their contract’s lifecycle costs over the term of their contracts. No longer will price be the only determining factor on future contracts.”

“It comes down to this,” Yokl says, “Value-Based Purchasing by healthcare organizations now mandates a change in supply chain contracting methodologies. For example, a healthcare organization signs a fixed cost Value-Based Contract with a third-party payer. Correspondingly, their supply chain director also needs to sign Value-Based Performance Contracts with their organization’s vendors that relate to this Value-Based Purchasing contract to be assured that their supply total cost will not rise one cent over the term of their hospital’s Value-Based Purchasing agreement. This is a whole new way of doing business that our SupplyValidator™ Automated Supply Chain Auditor can help ensure success. Specifically, it will ensure that these savings happen as planned or calculate what a vendor owes to a hospital, system or IDN at the end of their contract term.”

Just as important, the SupplyValidator™ Automated Supply Chain Savings Auditor can help supply chain departments to capture more savings that weren’t anticipated at the outset of a Value-Based Performance Contract. For instance, a client of SVAH calculated $30,000 at the outset of an agreement on a floor glove contract and 18-months later saved $92,000. Their supply chain director agreed that if his hospital wasn’t employing the…

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