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What’s really holding back clinical spend transformation?

It’s not a lack of data or strategy—it’s the failure to turn insight into physician-aligned action.
Supply chain and cost management
Data, analytics and AI
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Key points

      If there’s one uncomfortable truth in healthcare supply chain today, it’s this: most clinical spend transformation efforts don’t fail because of bad contracts or insufficient analytics.

      They fail because physician alignment is approached as an afterthought.

      I’ve seen organizations invest heavily in better reporting, more sophisticated analytics, and increasingly rigorous value analysis processes, all with the expectation that clearer insight would naturally lead to better decisions and sustained change. And yet, time and time again, the outcome looks familiar: variation persists, savings plateau, and initiatives that once showed promise quietly lose momentum.

      We don’t have a data problem. We have a translation problem.

      Most health systems today have access to data within their EHRs and internal systems, and many can use that data to identify one-off opportunities or broad areas of variation.

      But turning that data into something that is clinically credible, comparable, and actionable is a very different challenge.

      In many cases, the data itself is incomplete, inconsistently captured, or difficult to interpret without significant normalization and context. Small gaps—whether in documentation, cost completeness, or case-mix adjustment—can quickly undermine trust and stall conversations before they begin.

      And when those insights are brought into clinical conversations, something often breaks down.

      The question isn’t whether variation exists; it’s whether that variation is clinically meaningful, fairly represented, and actionable in a way that physicians believe in.

      Without clinically defensible, case-level clarity—data that physicians trust and see as fair, and that accounts for procedure type, patient complexity, and outcomes—conversations stall before they ever turn into decisions. They become debates about methodology, or worse, debates about intent.

      And when that happens, even high-impact opportunities struggle to make it through governance.

      This is why alignment isn’t separate from analytics; it’s dependent on it. But not just any analytics. The kind that can stand up in a room full of surgeons, answer the inevitable follow-up questions, and withstand scrutiny.

      Because if the data doesn’t hold up in that environment, the initiative won’t either.

      Advance your clinical spend transformation

      The illusion of control

      There’s another reality we don’t always acknowledge: supply chain doesn’t control clinical spend.

      Physicians do.

      We can negotiate contracts, evaluate alternatives, and design thoughtful sourcing strategies, but at the point of care, the decision is still made by a clinician. And if that clinician isn’t aligned—if they don’t trust the data, the process, or the intent behind the change—the strategy itself becomes largely irrelevant.

      Too often, organizations start in the wrong place—focusing first on price and sourcing leverage rather than understanding variation in utilization, product selection, and clinical approach.

      That process may generate short-term savings, but it rarely leads to meaningful, sustained change. Because physicians don’t resist change in and of itself. They resist change that doesn’t feel clinically grounded or fairly evaluated.

      That’s why it’s important to take a different approach, one that requires more patience but ultimately delivers far stronger results. Instead of defining the answer upfront, start by asking physicians to define what’s clinically acceptable, ensuring that every surgeon—employed or independent—has an equal voice.

      From there, data and benchmarking helps guide the conversation toward where standardization makes sense and where variation is justified.

      It’s a subtle shift, but an important one. You’re not asking physicians to comply with a decision. You’re asking them to help shape it.

      And that’s what turns alignment from a goal into a reality.

      Progress

      Why most initiatives don’t stick

      Even when organizations get alignment right at the start, there’s a second challenge that often undermines progress: sustainment.

      It’s not uncommon to see initiatives that gain early traction (delivering measurable savings and strong engagement) only to lose momentum over time. Variation creeps back in. Exceptions grow. And within a year or two, the same conversations are happening again.

      This isn’t a failure of insight, nor is it a failure of intent.

      It’s a failure of structure.

      Because alignment isn’t a moment—it’s a system.

      Without a repeatable way to move from insight to decision, from decision to implementation, and from implementation to ongoing monitoring, even well-aligned changes struggle to hold. What looks like progress becomes episodic improvement—brief gains that aren’t built to last.

      And in an environment where procedural spend represents one of the largest opportunities for impact, episodic improvement isn’t enough.

      The ASC shift is raising the stakes

      As more procedures move into ambulatory surgery centers, the importance of physician alignment becomes even more pronounced, largely because the dynamics of decision-making and financial performance are more tightly connected.

      In many ASC settings, physicians are not just participants in the process—they are the primary decision-makers, and the impact of supply choices on cost-per-case is both immediate and highly visible.

      That creates a different kind of conversation.

      When clinicians can clearly see how variation affects both outcomes and margin, and when that insight is grounded in data they trust, the path from insight to action becomes much shorter. Alignment feels less like a negotiation and more like a shared objective.

      And when incentives aren’t aligned, behavior often isn’t either.

      Where this is headed

      Where this is headed

      Looking ahead, the next phase of clinical spend transformation won’t be defined solely by more data or faster analytics. It will be defined by how effectively organizations can translate insight into clinically aligned action.

      We’re already seeing a shift toward more integrated approaches, where cost and quality are evaluated together, benchmarking is more precise and relevant, and data is structured in a way that supports—not complicates—clinical decision-making.

      But the organizations that will lead in this space won’t just have better tools.

      They’ll have better alignment.

      Because when physicians are engaged as partners—when they trust the data, understand the opportunity, and see their role in the outcome—they don’t just participate in change.

      They drive it.

      Turn insight into action: If the challenge isn’t identifying variation but acting on it, then the next step is ensuring your data, governance, and physician engagement model are working together. Vizient Procedural Analytics is designed to bridge that gap by transforming fragmented procedural data into clinically defensible, case-level insight that physicians trust and can act on. By integrating supply, clinical, and outcomes data into a single view, organizations can more clearly understand what’s driving variation and align stakeholders around the right actions. Learn more about how Procedural Analytics’ trusted benchmarking, normalized data, and clinician-ready insights can help your teams drive meaningful, sustained change.

      Author
      Allen Passerallo headshot.jpg (Original)
      Senior Vice President, Physician Preference
      As Senior Vice President, Physician Preference at Vizient, Allen Passerallo is an accomplished healthcare supply chain leader with extensive expertise in sourcing, value analysis and purchasing. He has held senior leadership roles at Cleveland Clinic and Johns Hopkins Health System, where he advanced value-based care strategies and delivered significant cost... Learn more