In 2012, Repertoire conducted a survey with its sister publication, The Journal of Healthcare Contracting, to gain insight into the minds of those running America’s health systems who were acquiring practices. One survey question related to how these systems would distribute med-surg products to acquired practices, whether through a prime vendor, self-distribution or segment a prime vendor for acute and a prime for alternate site.
Only 14 percent said they would use a dual system of acute care suppliers and alternate site suppliers. I remember sharing these results with Steve Inacker, President, Hospital Sales and Services at Cardinal Health, at Cardinal’s national sales meeting that year. I made the statement to him that Cardinal was in a very good spot to capture a lot of market share if this held true. My concern, though, was whether these IDNs buying practices were like the dog chasing the car – what would they do once they caught it?
My gut reaction back then was that IDN executives didn’t really understand the intricacies involved in servicing an alternate site account. They may have assumed their prime vendor for the hospitals would be able to service the alternate site accounts the same way.
Fast forward to 2015, and the amazing amount of consolidation and change that we have undergone: IDNs buying each other and acquiring practices, McKesson acquiring PSS, Medtronic acquiring Covidien, and now the deal between Cardinal and Henry Schein. You have to give credit to the Cardinal and Schein teams for following the customer and understanding their needs.
Alternate site facilities have different needs, issues and opportunities. Candidly, it’s why we include an Acquired Practice column (sponsored by Schein) in The Journal of Healthcare Contracting, and why the distribution sales representative is more important today than ever before. Without a doubt this is what the executives at both Schein and Cardinal understood and why they forged this agreement.
Yes there is a lot of consolidation in the industry, but as you will see in Editor Mark Thill’s cover story this month, it’s more about an understanding of today’s caregivers and servicing them efficiently so they can in turn serve their patients and deliver better outcomes.
Dedicated to Distribution
R. Scott Adams
PS: Last month you received a Repertoire calendar. Be sure to download the “LAYAR” app (it’s free) on your smartphone or tablet and scan each month throughout the year. The manufacturers will be changing their messages regularly.