Volume 8 | December 20, 2017
Insights-Trends-Opinions
Welcome to National Accounts Weekly!

This is the only publication dedicated to inform suppliers to healthcare on the good, bad and ugly of the U.S. contracting arena! Read this issue to be in the know!

We cover everything you need to know about GPOs, IDNs and RPCs!

This will be the last issue of 2018! Merry Christmas and Happy Holidays!

Enjoy back issues of National Accounts weekly by clicking here!

Please share with your colleagues!
34% of physicians use Amazon to purchase medical, dental supplies
While not all device manufacturers authorize Amazon to distribute products, Amazon is frequently used by physicians to purchase supplies and devices, a CNBC report suggests.

Here's what you need to know:

A CNBC survey to participating physicians indicated 34 percent are using Amazon to purchase medical and dental supplies. As the online retail giant begins to move into practices, dental and medical supply distributors are facing disruption.


Payer or Provider? Lines blur as United Health buys Physician Group
UnitedHealth’s Optum unit will acquire the physician group from DaVita, a large for-profit chain of dialysis centers.

Here are some of the numbers:

  • Purchase price of $4.9b
  • 300 clinics in 6 states
  • Already own 250 Urgent Care Centers
  • Currently has 30,000 employed docs


From a supply point of view this becomes very interesting. Should suppliers, GPOs and Distributors be treating United Health like a National Account?

Top 3 articles from
National Accounts Weekly in 2017
Gartner releases its Top 25 Healthcare Supply Chains
Intermountain Healthcare tops Gartner's 2017 Top 25 Healthcare Supply Chains for the second year in a row. Also finishing in the top 10 are:
  • Mayo Foundation
  • Mercy
  • Cleveland Clinic

This is a list that I look forward to reading every year. It measures the organizations on metrics like bond ratings, inventory turns, peer and Gartner opinions. It is very well thought out and much more than a beauty contest.

Not long ago I had Eric O'Daffer on Healthcare Supply Chain Radio and we discussed at length the process, calculation and determination of the Top 25. You can listen to that episode by Clicking Here .

Personally, I have struggled with how they group IDNs with distributors, device manufacturers and big pharma. I'd love to see just the IDNs and how they compare to one another.

To see how other systems rank, such as:
  • Scripps
  • Ochsner
  • Banner
  • Texas Health Resources

Click on the below link to the full report!

Scott Caldwell, CEO of The Resource Group on supplying Ascension Healthcare
Scott Caldwell was interviewed for The Good Day Ascension podcast series. The interview originally aired earlier this year and it gives great insight into Scott Caldwell's vision for The Resource Group (TRG).

Some facts about TRG size and scope:

  • $7.7b in supply spend
  • Manages:
  • 70m square feet of space
  • 1m annual courier visits
  • 1m annual PO lines
  • 4m Supply Chain labor hours

I think you will find his philosophy on negotiation and change management fascinating.

He is also candid about what a vendor's role is in serving Ascension. He also tells suppliers exactly what to expect when you meet with him!

This podcast is a must listen!

Women Leaders in Healthcare Supply Chain announced
Women leaders in the healthcare supply chain exemplify risk-taking, support, courage and an eagerness to learn. The Journal of Healthcare Contracting recently highlighted several women leaders for the December 2017 issue.
The individuals were picked by colleagues across the industry, and included leaders from IDNs and organizations such as:

  • Cleveland Clinic
  • Vanderbilt University
  • Premier
  • Catholic Health Initiatives
  • Vizient
  • and more

To download the article click below.

2017 National and Corporate Account Executives compensation report now available!
The Journal of Healthcare Contracting  recently conducted a survey on National and Corporate Account Executives compensation plans in 2017.
The results of this study allow you to compare compensation packages with peers in relation to the area of responsibility and job title.

This report will show you average salary by:
  • Title
  • Area of responsibility (by organization or geography)
  • Number of IDNs/GPOs/RPCs covered
  • Number of states covered
  • Employer revenue
  • Type of employer (Pharma, Med/Surg, Physician Preference, Lab, Services)
  • Number of direct reports

You can purchase this report using the button below, or for more information, contact Anna McCormick at 770-263-5280.

How many IDNs will we end up with?
This is the most common question I am asked! I have my thoughts on it but I thought I'd see what the readers of National Accounts Weekly think!

So in a recent survey I asked:

It is estimated that we have around 600 IDNs in the United States today. Mergers and acquisitions continue at a rapid pace. How many IDNs will we end up with in 3-5 years?

Here are the responses:

Around 300. We will have about half as many IDN/Hospital owners. 55%
Less than 100. We will see massive consolidation. 21%
600 or so. We are pretty much done with consolidation. 4%
Other (please specify) 20%

This does not surprise me. Around 300 seems to be the most common response in daily conversations. The U.S. has 40 MSAs (cities) with over 1m people. You have to think each of those will have 3-4 IDNs each, so that gets you to around 150. It will be interesting to watch, that is for sure!
Merry Christmas and Happy Holidays from all of us at Share Moving Media!
Wishing all of you a very happy holiday season! I hope everyone gets to spend time with family and loved ones!

See you in 2018!
Feel free to share!
Thanks for reading this issue of National Accounts Weekly! Let me know what you think!

You are now in the know!

John Pritchard


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