May 21, 2020
To our National Accounts Family:

I hope this message finds you safe, healthy and staying positive in the wake of a pandemic that has turned our world upside down.

Despite the effects COVID-19 has had on us all, The Association of National Account Executives’ (ANAE) mission has never been more clear; to inspire our members & followers to connect, share and learn from each other in the spirit of living healthy, fulfilling lives and to never stop pursuing their dreams and serving others. We are committed to continue providing compelling news, insights and content you need to stay on top of healthcare contracting trends in an industry full of volatility, challenges and opportunity.

As always, thank you for reading our latest edition of National Accounts Weekly.
Stay well,

Scott M. Pecore
President, ANAE

Gawande steps down as CEO of Haven
Less than two years after a CEO was named — the highly-regarded author and surgeon Dr. Atul Gawande — to lead Haven, the joint venture involving Amazon, JPMorgan Chase and Berkshire Hathaway.

After news of Gawande’s departure from the top job was reported earlier, Haven announced Wednesday that Gawande is stepping back from day-to-day operations and will instead become executive chairman of Haven. A search for a new CEO is underway.
Trump Grants More Financing for Pharmaceutical Companies Amid Pandemic
Trump signed an executive order to grant new authority to the U.S. International Development Finance Corporation to finance industries vital to the pandemic response.

Trump also announced that his administration is launching an effort to replenish the strategic national stockpile of medical equipment with 90 days worth of supplies "much of it made in the USA."

He said he has ordered contracts for roughly 200,000 ventilators and 800 million N95 masks so that "never again will a president inherit empty shelves or expired products."
ANAE Government Contracting Forum June 30
Please join us for the live ANAE Government Contracting Forum on June 30 at 2:00 PM ET.

This webinar is intended for those who may be new to government contracting or interested in learning how to maximize their existing government contracts.

Learn how to get the most revenue out of your government contracts by working with two of the industry's most experienced leaders:

  • Merl Stroder, National Acquisition Center's Small Business Specialist and Customer Advocate at the VA
  • Dennis Daar, Managing Partner, Medical Strategies International
 
This webinar is free for ANAE members. 

If you are not an ANAE member, please register and view more information with the link below.
Amazon delivers 100M supplies to healthcare organizations and governments fighting COVID-19
The items were sold through Amazon Business’s COVID-19 Supplies operation, which launched in the U.S. to help frontline workers access the equipment they need to protect themselves from the virus.

Amazon expanded the program to Canada, the United Kingdom, France, Germany, Italy, Spain, Japan, and India. The company says the operation “ is a service for communities and does not make a profit.”

Customers who purchase products through COVID-19 Supplies receive “free priority delivery,” the fastest delivery speed. Amazon says it is waiving fees for third-party sellers who provide products for the program.
North American Healthcare Supply Chain Management Market Slated for Highest CAGR Thanks to Provider Consolidation
The healthcare supply chain management market is expected to see its largest growth in the North American market between 2020 to 2025, according to a Research and Markets report released Monday morning.

Overall, the healthcare supply chain management market is projected to increase at a compound annual growth rate (CAGR) of 7.9% during the forecast period.

The report attributed the North American market's projected CAGR to widespread consolidation among hospitals, as well as the "rising prevalence of chronic diseases and growing awareness in the region."
The COVID-19 pandemic will have a long-term impact on healthcare. Here are 4 changes to expect
Even after the immediate emergency of the current COVID-19 pandemic passes, the healthcare industry won't return to business as usual, experts say.

Healthcare is in a state of flux and there will be financial tough times in the near term for many health systems, according to Justin Gernot, vice president at healthcare advisory firm Healthbox.

Here are 4 changes to expect:

1. New strategies for elective surgeries
2. Developing local supply chain sources
3. Digital health options will accelerate
4. Expect innovations with drones and robotics
The U.S. Drug Supply Chain in Crisis: Solutions to Shortages
One of the biggest challenges facing the U.S. healthcare system is drug shortages, with the potential for year over year growth to exceed 27%. 

The U.S. Food and Drug Administration’s Drug Shortages Task Force released a report that identified several factors that often converge to create a shortage situation, including:
  • The lack of incentives for manufacturers to produce low-margin drugs,
  • The market failing to recognize and reward manufacturers with robust quality control, and
  • Regulatory and logistic issues that impede the market’s recovery after a shortage.
Healthcare earnings reports from the first quarter of 2020
Earnings reports from providers, insurers and health technology companies for the three months ended March 31.

Senators probe Medline about 'Project Air Bridge'
Two U.S. senators are probing Medline Industries as well as others firms involved in a Trump administration venture branded "Project Air Bridge," which flies in to the U.S. vital COVID-19 medical supplies that are in short supply.

Sens. Elizabeth Warren and Richard Blumenthal say the program operates "with little to no transparency." Blumenthal tweeted that Trump seems to be playing politics again with public health and misdistributing scarce medical supplies.
Mayo Clinic's operating income drops 88% in Q1
Mayo Clinic was in a strong financial position before the COVID-19 pandemic hit. It had a  record performance year  in 2019, with revenue of $13.8 billion and operating income of more than $1 billion.

The health system began 2020 with significant liquidity reserves, but its finances began to suffer in March after it deferred all elective care that could be postponed for at least eight weeks. 

Mayo Clinic's revenue totaled $3.2 billion in the first quarter of this year, down nearly 4 percent from the same period a year earlier. Net medical service revenue was up less than 1 percent year over year. 
Counterfeit masks reaching frontline health workers in US
An Associated Press investigation has found millions of counterfeit medical masks, gloves, gowns and other supplies being used in hospitals across the country, putting lives at risk.

This story is part of an ongoing investigation by The Associated Press, the PBS series FRONTLINE and the Global Reporting Centre that examines the deadly consequences of the fragmented worldwide medical supply chain.
John Pritchard
Publisher of National Accounts Weekly


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