Who Is Behind the Curtain?
Tim Ingram
Senior Subject Matter Expert | Emphasizing that success is achieved through collaboration and communication. Transforming healthcare by connecting silos and streamlining systems, platforms, people, and data.
Conflicts of interest within Purchasing and Strategic Sourcing can take various forms. Here are some specific examples:
Vendor Favoritism
Kickbacks
Administrative Fees
Exclusion of Competitors
Personal Gains
Nepotism
These instances underscore the necessity of transparency, commitment to ethical principles, and the proper handling of potential conflicts of interest to preserve the integrity of the procurement process and secure optimal results for healthcare providers and patients.
When influencers are part of committees and groups that have direct ties with vendors, they can potentially insulate customers from alternative sources.
I have intentionally omitted these vendors because those with extensive experience in the healthcare supply chain are likely familiar with them. Placing staff members in influential positions across various groups aims to steer customers towards contracted vendors rather than more competitive options.
Is this legal? probably
Is it ethical? probably not
Is it honest? Depends on who you talk to
These entities will advocate that collaboration and collective effort in healthcare will deliver the "best value." However, "value" is a loosely defined term that varies depending on who defines?it.
If the potential to save X dollars is significant, but the actual savings are less than forecasted, it raises the question of who is misleading whom.
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NOTE: Vendor relationships are important, but failing to perform due diligence in separating fact from fiction is dangerous and costly.
Fundamentally, these relationships aim to utilize the combined purchasing power of healthcare organizations to obtain optimal pricing and terms from suppliers (contracted). This supposedly ensures that products and services adhere to the stringent standards demanded in healthcare. Members of the Value Analysis Groups influence providers/users to reap the advantages of these relationships by accessing negotiated contracts, expertise, and supplementary services, which could result in cost reductions and enhancements in operations.
However, the relationship with vendors and value analysis can be complex, especially when considering potential conflicts of interest. Conflicts of Interest may arise if a source has financial ties to certain vendors or if financial incentives exist. Maintaining ethical standards and managing conflicts of interest is essential to ensure that the benefits of contracting agencies are realized without compromising the integrity of the value analysis process.
There exists a range of opinions on the effectiveness and necessity of these vendors who provide value. However, it is not about savings or collective bargaining power. It is about relinquishing the power of control to any agency that is unfairly and maybe covertly pushing customers to vendors because of a financial relationship.
I aim not to debunk but to raise awareness about the healthcare business. Terms like savings, cost, value, and expense are quite flexible and can be misrepresented.
Being informed is not a crime, but ignorance can be embarrassing.
Think about it,
Tim
Published Author, Accomplished Supply Chain and Strategic Sourcing Professional, Doctoral Candidate (Doctor Health Administration)
9 个月I was very surprised to learn that 7 of the 9 board members of the Association of Healthcare Value Analysis Professionals (AHVAP) are either direct employees, or health system representatives of the same GPO. Then I learned through discussions with a supplier rep that they seemingly are allowed membership in the AHVAP as well. Specifically, it was a consultant who responded to one of my posts who said he was a long time member of the AHVAP & challenged my “conflict of interest” claim. Someone please either confirm, or deny this for us. If the consultant is accurate, & either consultant, supplier, distributor reps are allowed membership, wouldn’t it feel like the “fox is in the henhouse?” And, this could be another potential conflict of interest? Value Analysis in the USA has failed us from a cost, quality, & value perspective. It requires a “PROFESSIONAL re-alignment of people, technologies, & processes immediately!