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 SupplyValidator™ Supply Chain Savings Auditor they would never have captured this extra unreported savings.

Traditionally, supply chain managers haven’t focused on lifecycle contract costs with any intensity. However, now that your hospital, system or IDN will be at risk with at a third or more of their Value-Based Purchasing Contacts, supply chain managers need to ensure that the total cost for any of their commodities will be fixed for any given period. This can only be accomplished by measuring, managing, rewarding and penalizing your vendors, when warranted, by employing a tool like the SupplyValidator™ Automated Supply Chain Savings Auditor to keep score.

If you would like to see how the SupplyValidator™ Supply Chain Savings Auditor can help your hospital, system or IDN to validate the actual financial results of all supply expense contracts just sign up for a FREE demo at

About the Company: SVAH Solutions (SVAH), Skippack, Pennsylvania, is a software, training and consulting firm specializing in value analysis, clinical supply utilization and vendor compliance management. SVAH’s mission is to give its clients greater control over their supply chain expenses by providing them with better information, better focus, and better systems so that they can make better decisions on their healthcare organizations second biggest expenditure.

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