An inch deep and a mile wide best describes what happens when I ask manufacturers and independent reps how they are doing in the Integrated Delivery Network (IDN) markets. I get responses like, “We are getting better,” or, “We know a couple hospital reps from O&M and Cardinal.”
Here are some hints for improving your chance of success with IDNs:
From the IDNs’ Mouths
At a recent Association of National Account Executives (ANAE ) meeting in Dallas, I had the pleasure of going through several rotations with distinguished guests from Novation, Med Assets, Premiere and Broadlane. Also present were executives from three leading IDNs. It was interesting to hear from the IDNs why they felt the need to belong to (Group Purchasing Organizations) GPOs. The reality is that they need them now more than ever. According to one 50-hospital IDN, the GPO provides much more than contracted pricing. The IDN relies on the organization for such things as legal, IT services and marketing.
The GPOs are aggressively looking for and finding ways to become far more valuable resources to the IDNs and are embedding themselves into the procurement departments. They are also helping the IDNs improve community health and work toward improving patient satisfaction. It’s no longer just about curing the sick. (Perhaps they should also work on hospital food.)
While medicine has traditionally lagged in technical development, the information our health care systems have available to them is now incredible. We should all be happy about this. In this technical age, it would be impossible to improve medicine without fast access to critical information about the effectiveness of any initiative or intervention and how they can lead to improved patient outcomes.
As history repeats itself, IDNs are hiring doctors at record speed. But this time it’s different than such periods in the past. While it would be impossible to list all the factors involved in this trend, there are a couple of key issues at work. First, of course, is the economy. Many physicians are now looking for the economic protection that an IDN provides. Then there’s the fact that younger physicians are opting for the alternative of a key position with a 40-hour week with great benefits, rather than taking the risk of setting up a practice with outlandish malpractice insurance cost and long hours. And someone else is dealing with issues like human resources and cash-flow.
Words to the Wise
As far as calling on IDNs, the message I got was that you have a much better chance of getting in front of them if you’re invited in. So focus on getting invited. Remember that, while IDNs need Distribution and GPOs, they also need creative suppliers. If you can hit the right notes from the start, you have a good chance of building a relationship. They want to hear that you can help them (List courtesy of NCI Consulting):
- Improve Patient Outcomes
- Increase Revenue
- Reduce Print Cost
- Improve Utilization
- Increase Efficiency
- Product Standardization
- Provide Ease of Conversion
- Offer Better Terms