"The organized, systematic application of recognized techniques which identify the functions of a product or service, and seek ways to enhance value by providing the required performance at the lowest overall cost."
VA follows a job plan that leads a team through specific methodology designed to investigate current processes or products and compile creative improvement ideas. When applied to revenue processes, VA seeks improvements of the overall revenues collected. Value, in this sense, can be defined by the following equation:
Value = Revenue / Cost
Based on the above equation, value can be increased by implementing ideas that result in any of the following:
- Increase in revenue captured and decrease in costs incurred.
- Increase in revenue captured while costs remain unchanged.
- Decrease in costs incurred while revenues remain unchanged.
A Value Analysis workshop follows a six-step job plan as established by SAVE International, the Value Society (www.value-eng.org). The phases and their associated activities within a healthcare revenue cycle workshop are:
- Evaluation/Analytical Phase: alternatives are ranked for acceptability and impact.
- Development Phase: highest-ranked ideas are developed into formal proposals/initiatives.
- Presentation Phase: formal proposals are presented to decision makers.
