Participatory Vendor Selection

Farrokh Alemi, Ph.D.

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Objectives

Facilitate communication

Create consensus

Improve documentation

The cost of EHR could bankrupt us.

This is all a waste of time

I hate computers

It should save me time

Let us redo the entire process

What is it?

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What is a model of values?

Quantify preferencesHigher numbers more preferred options

AssumptionsDecision makers have optionsSelection is based on preferences Preferences are based on attributes

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Additive Multi-Attribute Value Model

Overall Value = V (A1) + V (A2) +   ... + V (An)

Value on Attribute 1

Value on Attribute 2

Value on Attribute n

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Misleading Numbers

Numbers approximate preferences

Focus should be on building behavioral consensus

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Steps in Participatory Vendor Selection

1. Invite stakeholders to participate

2. One-on-one interviews

3. Group meeting

4. Construct group’s scoring

5. Discuss major differences

6. Measuring vendor performance

7. Documentation

Step 1: Invite Stakeholders

Many decision makersCIO, CMIO, CNOCliniciansPeople with budget authorityClinicians expected to use the system

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Step 2: One-on-One Interviews

Individual interviews before group meetingCan be done on phoneTakes about 1 hourModels preferences of the participant

Introduction to the processAttributes usedAssociated scoring system

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Step 3: Group Meeting

Construct straw model

Display model in flip chart sheets

Arrange participants facing the sheets

Introduce the task

Ask participants to introduce themselves

Review all attributes & attribute levels

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Step 4: Construct Group’s Scoring

Which is more important, cost per physician or ease of use?  ______________If we assign 10 to the least important attribute, how many times more important is the other? ____ times

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Step 4: Construct Group’s Scoring

Which is more important, cost per physician or ease of use?  ______________If we assign 10 to the least important attribute, how many times more important is the other? ____ times

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Step 5: Discuss Major Differences

Discuss reasons not the ratings

Check assumptions

Accept some differences and re-rate

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Step 6: Measure Vendor’s Performance

Expert rating

Standardized cases

Committee ratings DemonstrationsSite visits

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Scoring Procedure

Vendor A Vendor B Vendor C

Attribute Weight Level Rating Level Rating Level Rating

Ease of use 2 minutes 3 minutes 5 minutes

Cost 11,000/bed 15,000/bed 9000/bed

Reputation Good Excellent Good

Total

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Scoring Procedure

Vendor A Vendor B Vendor C

Attribute Weight Level Rating Level Rating Level Rating

Ease of use 0..3 2 minutes 100 3 minutes 80 5 minutes 0

Cost 0.4 11,000/bed 70 15,000/bed 0 9000/bed 100

Reputation 0.2 Good 0 Excellent 100 Good 0

Total 1.0

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Scoring Procedure

Vendor A Vendor B Vendor C

Attribute Weight Level Rating Level Rating Level Rating

Ease of use 0..3 2 minutes 100 3 minutes 80 5 minutes 0

Cost 0.4 11,000/bed 70 15,000/bed 0 9000/bed 100

Reputation 0.2 Good 0 Excellent 100 Good 0

Total 1.0

=100*.3+70*.4

=58

=80*.3+100*.2

=44

=100*.4

=40

Step 7: Documentation

Who participated

Meeting process

Group’s consensus scoring systemAttributes, attribute levels & associated

scores

Performance of vendors

Conclusions and next steps

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Take Home Lesson

Process Matters