Article preview reprinted from Medtech Insight -September/October 2009
The task of selling into the tough-to-crack hospital market is likely to become even more challenging for device manufacturers in the future as more hospitals toughen policies regarding the introduction of new products to their increasingly cash-strapped facilities. Materials managers from around the industry have pointed messages about what it will take for suppliers to make the sale, from providing better data to proving your company's financial stability. Read more...
AHRMM 2009: Hospitals Raise Bar on Purchasing Decisions
Article preview reprinted from Medtech Insight -September/October 2009
The task of selling into the tough-to-crack hospital market is likely to become even more challenging for device manufacturers in the coming months and years as many hospitals harden their positions and toughen policies regarding the introduction of new products to their increasingly cash-strapped facilities. (See Exhibit 1.) A higher level of involvement by physicians in many purchasing decisions has been well-documented in these pages, but now, materials managers are raising the bar still higher by insisting device and supply manufacturers vault a tougher new mix of financial hurdles and supply actual proof of return on investment in addition to the customary demands for clinical criteria.
Evidence of that growing movement was clear this summer in Tampa, FL, where materials managers held their lone nationwide annual meeting, the 47th expo of the Association for Healthcare Resource & Materials Management (AHRMM). The nation's sagging economy and ever-increasing demands put on materials executives on the home front seemed to conspire to cut attendance by an estimated 15% from previous conclaves, but the messages sent by those who made it to the event were nearly unmistakable.
Spotlight on "Smart" Purchasing
Prompted in large measure by fiscal necessity, hospitals are working hard to shed their well-deserved reputation as pushovers when it comes to bringing in new technology. And, with supplies and supply chain management taking a growing bite out of hospitals' operating budgets, their efforts could have a significant impact on the bottom line. (See Exhibit 2.) According to a recent report from the Healthcare Financial Management Association, a 5% to 15% savings in supply chain costs could add up to a 1% to 3% increase in hospital operating margin.
by Curt Werner
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Companies mentioned in this article:
VHA Inc.
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