I’m sensing a positive vibe for 2015, both in our industry and the economy in general. Just consider some recent headlines. Fannie Mae and Freddie Mac announced that they’ll now accept 3 percent down payments on mortgages, which will help to stimulate the housing market. Interest rates are still at historic lows. Gas prices have dropped considerably, giving American households more disposable income. The stock market looks to be growing.
As for headlines that directly affect the medical distribution community, a new Congress means we have a very good chance of getting the Medical Device Tax repealed. This would be a direct shot in to the arm for the manufacturing community. It should generate new R&D, equaling new products as well as hiring.
Like it or not, the Affordable Care Act has provided an influx of new patients, which will increase doctor visits. This allows our industry continued growth.
Most importantly, I firmly believe that 2015 will be the year of the distribution rep. All indications show that physician acquisition is here to stay. While we have all held our breath with worries of formularies and more self-distribution over the past five years, neither seems to be the threat we thought they were. While systems are deciding which distributor will be their prime vendor in acute and alternate site, they are allowing the alternate site offices to buy the products they choose.
In a recent survey we saw results indicating less than 10 percent of physician practices are on formularies. The top systems are buying practices for the population or patient base. This is why your career is so crucial to the supply chain. The facilities will continue to need your guidance and expert advice for years to come. It is why we recently saw Henry Schein acquire the Cardinal ambulatory care business. Just as important, the manufacturing community will need you more than ever.
This month’s cover story examines the positive vibe circulating among medical sales professionals, based off of a survey we conducted. Be sure to read this article — it is your voice and your outlook. For those reps that participated in the survey, we thank you! We will do this survey every November and share the result every January going forward.
Dedicated to Distribution
R. Scott Adams
PS: Look for more coverage of the Schein/Cardinal deal in the next issue of Repertoire.