Volume 42| February 14, 2019
Insights-Trends-Opinions
Hello National Accounts Executives,

I hope this finds you well! Please share this with your colleagues!

John Pritchard
jpritchard@ShareMovingMedia.com
(770) 263-5262

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Do your solutions align with IDNs top challenges?
A study of 100 healthcare executives identified
two issues to be top of mind for health systems
in the coming three years: addressing the cost
pressures that have resulted from declining
reimbursements, and improving the patient
experience.

The study, conducted by Porter Research in
December 2018, gathered input from health
system executives and finance leaders across
98 unique organizations in the United
States. Participants included 71% C-level leaders,
including CEOs, CFOs, and CIOs, and 29% vice
presidents and directors across finance, adminis-
tration, and operations teams. The participants
were from acute care hospitals and integrated
delivery networks with over 300 beds, located
in the United States.


Premier's Hargraves: Managing Margin Through the Supply Chain
Today’s efforts by many health systems to reduce costs only lead to incremental impact. When elevated, supply chain is primely positioned to drive sustainable savings and improved outcomes to set the stage for larger initiatives.

As we start a new calendar year, many health systems are looking at their numbers to assess financial performance. Have they moved the needle to drive not only short-term gains but long-term, sustainable margin improvements?
For many organizations, these assessments look bleak.

On a macro level, the American Hospital Association reports that hospital operating margins have dropped 47.4 percent on average over the last two years, outpacing net patient revenue by approximately 14 percent. This precipitous drop is being driven by steep declines in inpatient hospital stays, which have fallen 17 percent since 2009.

Intalere hires Julia McAllister as SVP of sales
Intalere (St. Louis, MO) hired Julia McAllister as SVP of sales. In her new role, McAllister will provide executive leadership, strategic direction, and administration to the sales teams and business partners of Intalere with a focus on strategic business development and growth.

Prior to joining Intalere, McAllister held sales leadership positions with organizations including Change Healthcare, StayWell, and A.D.A.M. Inc.
Value Analysis seminar... just for Suppliers
Check out this great seminar that will coach suppliers on how to turn the Value Analysis process into a strategic advantage.

If you struggle with getting the attention of Value Analysis committees and getting the outcomes you want, this is a must-attend event!

Check out this awesome agenda....


To save $100, use the coupon code:  ANAE2019

This event is hosted by industry veteran and Value Analysis Whisperer Dee Donatelli.

Selling products into hospitals and large healthcare organizations feels more complex than ever. Today, as hospitals take aim at measuring cost, quality, and outcomes, it is more important than ever to define and communicate the value and advantages of your company’s products.

  • This 1 ½ day highly interactive and engaging program will show you how to re-position your products for the Value Analysis Committee (VAC) process.
Updated!
Free Download: List of Top 25 Regional Purchasing Coalitions (RPCs) by member hospitals
The first time I heard of RPCs, a client of mine called them “Virtual IDNs”; that was probably 15 years ago. The idea is simple enough: it is hyper aggregation or super aggregation. Facilities that have different owners create an organization that empowers them to create more value in a contract.

Today, they have grown into sizeable and, at times, complex organizations. Definitive Healthcare has made available a list of the Top 25 RPCs by how many hospitals are in their membership as well as total net patient revenue.

Premier releases Q2 earnings. Revenue hits $421m and Net Income of $104m.
Q2 2019 Highlights:
  • GAAP net revenue increased to $421.9 million from $411.4 million a year ago; Supply Chain Services segment revenue of $327.0 million increased from $324.9 million a year ago and Performance Services segment revenue of $94.9 million increased from $86.5 million.
  • GAAP net income of $104.8 million increased from $19.8 million and diluted net income of $0.69 per share compared with $0.06 per diluted share a year ago.
  • Non-GAAP adjusted EBITDA* increased to $142.0 million from $133.5 million a year ago.
  • Non-GAAP adjusted fully distributed net income* increased to $88.4 million, representing $0.66 per diluted share, compared with $70.0 million, or $0.50 per diluted share a year ago.
Johnson & Johnson will list drug prices in TV commercials
TRENTON, N.J. — Johnson & Johnson said Thursday it will start giving the list price of its prescription drugs in television ads.

The company would be the first drugmaker to take that step.

The health care giant will begin with its popular blood thinner, Xarelto, said Scott White, head of J&J’s North American pharmaceutical marketing. By late March, commercials will give the pill’s list price plus typical out-of-pocket costs. The information will appear on screen at the end of the commercial and include a website where people can enter insurance information to get more specific costs.

Without insurance, Xarelto costs $450 to $540 per month, depending on the pharmacy. About 1 million Xarelto prescriptions are filled in the U.S. each month.

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John Pritchard


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