Vendor Selection Farrokh Alemi, Ph.D.

Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

Alemi at Georgetown 3 What is a model of values? Quantify preferences Higher numbers more preferred options Assumptions Decision makers have options Selection is based on preferences Preferences are based on attributes

Alemi at Georgetown 4 Additive Multi-Attribute Value Model Overall Value = V (A 1 ) + V (A 2 ) V (A n ) Value on Attribute 1 Value on Attribute 2 Value on Attribute n

Alemi at Georgetown 5 Misleading Numbers Numbers approximate preferences Nominal scale Ordinal scale Interval scale

Alemi at Georgetown 6 Steps in Vendor Selection 1. Select process 2. Select attributes 3. Select cases 4. Rate vendor performance 5. Set priorities 6. Recommend action 7. Document action

Alemi at Georgetown 7 Step1: Select Process Who decides? What must be done? What judgments must be made? How can the model of the judgment be used? Administrator?

Alemi at Georgetown 8 Step1: Select Process Who decides? What must be done? What judgments must be made? How can the model of the judgment be used? Administrator Select a vendor for long term

Alemi at Georgetown 9 Step1: Select Process Who decides? What must be done? What judgments must be made? How can the model of the judgment be used? Administrator Select a vendor for long term Performance of vendors on several attributes

Alemi at Georgetown 10 Step1: Select Process Who decides? What must be done? What judgments must be made? How can the model of the judgment be used? Administrator Select a vendor for long term Performance of vendors on several attributes Model can document the decision

Alemi at Georgetown 11 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 12 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 13 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the expert to introduce himself c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 14 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 15 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples of EHR that worked well and those that worked poorly d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 16 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 17 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 18 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 19 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 20 Step 2: Select Attributes a) Introduce yourself and your purpose Be judicious about pausing b) Ask the experts to introduce themselves c) Start with tangible examples d) Ask directly for additional attributes e) Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes and do not interrupt

Alemi at Georgetown 21 Step 2. Select Attributes Introduce yourself and your purpose Be judicious about pausing Ask the experts to introduce themselves Start with tangible examples Ask directly for additional attributes Arrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes, and do not interrupt

Alemi at Georgetown 22 Step 2: Select Attributes Do it again Start with list Solicit changes Record comments Avoid clicks Speak back to the entire group Maintain eye contact

Alemi at Georgetown 23 Step 2: Select Attributes Example attributes Easy to use Improve one or more business processes Most value for cost Fit with long term business strategy Vendor responsive to practice information needs Strong testimonies from prior users In use by other practice sites Compatible with existing systems

Alemi at Georgetown 24 Step 2: Select Attributes Vendor AVendor BVendor C AttributeWeightLevelRatingLevelRatingLevelRating Ease of use2 minutes3 minutes5 minutes Cost11,000/bed15,000/bed9000/bed ReputationGoodExcellentGood

Alemi at Georgetown 25 Step 3: Prepare Test Scenarios Make a case to enter Cover extremes Check for multiple entry Ask for revision procedures

Alemi at Georgetown 26 Step 4: Vendor Performance Test all on same cases Check performance on each attribute Rate performance on each attribute Standardize ratings

Alemi at Georgetown 27 Step 4: Vendor Performance Average time to enter patient data 2 minutes Between 3 minutes 5 minutes

Alemi at Georgetown 28 Step 4: Vendor Performance Vendor AVendor BVendor C AttributeLevel Ease of use2 minutes3 minutes5 minutes Cost11,000/bed15,000/bed9000/bed ReputationGoodExcellentGood

Alemi at Georgetown 29 Step 5. Rate Vendors on Single Attributes Double anchored assessment method 100 to best 0 to worst Rate the remaining levels

Alemi at Georgetown 30 Step 5. Rate Vendors on Single Attributes 2 minutes, minutes, ? 5 minutes, 0

Alemi at Georgetown 31 Step 5. Rate Vendors on Single Attributes Vendor AVendor BVendor C AttributeWeightLevelRatingLevelRatingLevelRating Ease of use2 minutes1003 minutes805 minutes0 Cost11,000/bed 70 15,000/bed /bed100 ReputationGood0Excellent100Good0

Alemi at Georgetown 32 Step 6: Set Priorities Assess ratio of importance Attributes are rank ordered Least important is assigned 10 points Rate how many times more important … Standardized weights Divide by sum

Alemi at Georgetown 33 Step 6: Set Priorities If reputation is 10, how many more times is ease of use more important? How many more times is cost more important than ease of use?

Alemi at Georgetown 34 Step 6: Set Priorities Example Weights

Alemi at Georgetown 35 Step 6: Set Priorities Vendor AVendor BVendor C AttributeWeightLevelRatingLevelRatingLevelRating Ease of use minutes1003 minutes805 minutes0 Cost ,000/bed 70 15,000/bed /bed100 Reputation 0.2 Good0Excellent100Good0

Alemi at Georgetown 36 Step 7: Recommend Action Calculate weighted sum Recommend best score

Alemi at Georgetown 37 Step 7: Recommend Action Vendor AVendor BVendor C AttributeWeightLevelRatingLevelRatingLevelRating Ease of use minutes1003 minutes805 minutes0 Cost ,000/bed 70 15,000/bed /bed100 Reputation 0.2 Good0Excellent100Good0 Total1.0 =100*.3+70*.4=80*.3+100*.2=100*.4

Alemi at Georgetown 38 Step 6: Recommend Action Vendor AVendor BVendor C AttributeWeightLevelRatingLevelRatingLevelRating Ease of use minutes1003 minutes805 minutes0 Cost ,000/bed 70 15,000/bed /bed100 Reputation 0.2 Good0Excellent100Good0 Total1.0 =100*.3+70*.4=80*.3+100*.2=100*.4

Alemi at Georgetown 39 Step 7: Document What was selected? What was the process? Why was it selected? What contingencies were thought through?

Take Home Lesson Process Matters