As the IDN market continues to emerge, it may be useful to know some basic terminology. The original list was compliments of NCI consulting. Definitions are courtesy of various IDN professionals.What does a $200k-per-year plus sales professional look like?
Increasing Revenues
Introducing an organization to a new technology or system that will help it boost revenue, by either building volume or better capturing service charges.
Reducing Direct Cost
Helping an organization shrink what it is currently paying for a piece of equipment or service.
Improving Utilization
Providing new technology with such intrinsic value that it prompts more people to use it or the same people to use it more frequently.
Enabling Simple, Measurable, Repeatable Data
The benefits of a given technology or service must be measurable so an organization can determine its ROI. The data must also be repeatable, indicating that it is reliable. If the data is intermittent or inconsistent, it is impossible to accurately measure ROI.
Increasing Efficiencies
Your technology or services will lead to a measurable improvement in workflow, equating to better productivity.
Enabling Standardization
Standardization between participants in an IDN is optimal, but standardization in a single entity is also valuable. When equipment is standardized in all respects, or when workflow is standardized, the risk of error decreases and support and maintenance are simplified.
Imagine various areas in a hospital or various entities within an IDN all configuring their common equipment differently, or all using the service or equipment in different ways. If there is a problem and they call a central resource for assistance or support, it is very difficult for the support resource to offer assistance in a timely manner.
Encouraging Sharing of Best Practices
IDNs that have implemented a new technology or practice can learn from other organizations that have the product or service in-place. These latter organizations have already discovered best practices by trial and error. Typically, vendors are aware of how their other customers are using a product or services and will share best practices with newer clients. They often do this through an online user group. You should be sure your client explores appropriate groups.
Eliminating Waste
Demonstrate how a particular product or service reduces or eliminates waste.
For example: Suppose a laboratory information system is configured to print a sheet of bar code labels for each patient registered for lab services, in order to ensure specimens are accurately and immediately labeled. But the maximum number of labels used by any patient is 10, so the lab disposes of the other 30 labels left on the sheet. By reconfiguring the system to print fewer labels and allowing users to “demand print” one at a time, the organization no longer wastes three-quarters of the label sheets and conserves printer ink. For an IDN or large medical center, this could add up to significant savings over a year’s time.
Determining Ease-of-Conversion
An organization needs to know how easy it is to convert from an existing product/system/service to a potential new one. Sometimes this is not an issue, because the new product is “net” new and isn’t replacing anything. But if a product/system/service is completely new, you must consider what needs to be converted (historical data, a new workflow process, using up old items before you introduce new, and so on) to determine if this is a good change for the organization to make. Remember, change is never a welcome condition, so an organization needs to know conversion will be as easy as possible.
Offering Better Terms
Demonstrate how you are offering better contract and payment terms. This may mean deferring IDN payment until it signs an acceptance statement that everything is working as promised 30 days after implementation, or the vendor accepts some risk with regard to promised ROI.
Measuring Contract Compliance
If you provide a well-written contract the customer will be able to easily measure a vendor’s compliance with its side of the contractual agreement. Milestones linked to payments are becoming more common for an increasing number of products and services. More detailed vendor deliverables tied to payments keep vendors compliant with agreements.
Service or Product Process Alignment
When you are introducing a new product or service into a healthcare environment, you must map out the current workflow and determine how the work process will change once the new product or service is implemented. If you don’t align the product or service and work process, the organization will be stuck with a new technology or product that doesn’t work as efficiently as it was meant to.