What is Value Purchasing in Health Care Supply Chain?

Health care value-based purchasing is a payment approach that holds providers responsible for both the cost and quality of patient care.

When addressing the procurement aspect of health care, as a purchaser, your primary objective is to ensure timely supply availability within budget constraints. Effective management involves analyzing and acquiring items, considering factors such as price, availability, lead time, and quality.

Price is a fundamental consideration, especially when evaluating the cost-effectiveness of procedures. For instance, if a healthcare provider receives "$X" for a procedure and the basic supplies cost less than that amount, the procedure remains feasible. However, introducing more expensive supplies may lead to a deficit and prompt refusal.

When exploring new products, assessing their availability is crucial. No matter how cost-effective a product may be, its utility diminishes if the manufacturer or vendor frequently faces stockouts. Additionally, considering lead times is vital; lengthy delays in shipping could result in receiving products after the required timeframe. While some products can be stocked at minimal cost and reordered to maintain PAR levels, others, with a shorter expiration date or higher expense, are ordered on a case-by-case basis.

In healthcare, where quality and patient safety are paramount, it is essential to scrutinize vendor relationships. If a vendor consistently experiences issues such as product malfunctions or damaged packaging during shipping, maintaining that relationship becomes untenable.

The value of a purchase is not solely determined by the product's price but by considering multiple factors in the procurement process. Balancing cost, availability, lead time, and quality ensures a comprehensive assessment that aligns with the core principles of healthcare—quality and patient safety.