Group Purchasing Account Representatives – Friend or Foe?
Healthcare suppliers do you know your GPO account representative? If not why not? It is important for suppliers to know and work closely with their GPO counterparts! In the spirit David Letterman’s recent retirement, here are the TOP TEN reasons why suppliers should have a strong working relationship with their GPO counterpart in key accounts:
Number 10 – Your GPO representative may have strong relationships with key decision makers that you may not have, which can help fast track the selling cycle.
Number 9 – GPOs and suppliers are surprisingly aligned in their efforts to help providers reduce cost.
Number 8 – GPO representatives can help suppliers drive pricing tier compliance.
Number 7 – GPO representatives know their customer protocols, which can help supplier proposals be better aligned the first time.
Number 6 – GPO representatives have a broad perspective on best practice insights.
Number 5 – GPO representative incentives are generally aligned with supplier incentives around driving savings through increased contract utilization.
Number 4 – Supplier organizations are paying administrative fees for GPO support whether you partner with them or not.
Number 3 – GPO partners can assist in positioning your product/service value proposition with data driven analytics.
Number 2 – Believe it or not suppliers and GPO representatives are on the same team.
And the Number 1 reason you should have a strong working relationship with your GPO representative is – GPO representatives are very nice people and they celebrate the holidays and love their families too.
And the Number 1 reason you should have a strong working relationship with your GPO representative is – GPO representatives are very nice people. They celebrate the holidays and love their families too. Make it a point to meet with your GPO account representatives. Together you will be more effective helping your provider meet their goals and objectives.
Rural Hospitals – Do Supply Chain Cost Reductions Matter?
One thing is certain: the effects of the Affordable Care Act (ACA) in the short term are uncertain. This is particularly true for rural hospitals. The Supreme Court is expected to issue its ruling later this month on the ACA (King v. Burwell). If the Court rules against the Administration, states will be in various camps regarding the likelihood of creating state run exchanges. Under the current law, hospitals have seen a financial improvement in 2014 – in states with and without Medicaid expansion.
The uninsured rates across the country are down and revenue growth and operating margins are up. Healthcare reform and Medicaid expansion no doubt contribute to this rise along with an improving economy, better negotiated commercial insurance rates, and acquisitions of small hospitals, to name a few. Singling out just one or a few causes for these improvements is risky. Healthcare leaders (especially in rural markets) must continue to be vigilant in their focus on factors over which they exert some control. Non-labor costs represent the second largest expense line in the hospital budget. Managing supply chain costs, seeking improved productivity and implementing process improvements are key areas for small hospitals. Many are ripe for improvement.
Another thing that is certain: rural hospitals must continue to identify, target and implement opportunities to manage and reduce non-labor costs while continuing to maintain high levels of quality care. Managing controllable expenses is a certainty in these uncertain times.
Rural hospital revenue remains vulnerable to regulatory changes; Cost pressures continue. See
“Where Medicaid expansion matters: Small Illinois hospital expands while Missouri counterparts cut back”
By Beth Kutscher | June 6, 2015