The capital equipment procurement “pain points” for healthcare providers and suppliers and associated trends were the topic of the first 2017 broadcast in the OpenMarkets Healthcare Broadcast Series. Healthcare technology experts Jonas Funk and Ken Graves from L.E.K. Consulting led discussion of the challenges both groups face. A recording of the broadcast, titled “Capital Trends: Data and Insight from L.E.K. Consulting,” is now available for viewing here.
Moderated by OpenMarkets Senior Vice President Tom Derrick, the conversation was informed by key findings from L.E.K.’s annual Strategic Hospital Priorities Study, as well as consulting experience with multiple large healthcare organizations in the $30 billion capital equipment market.
For both providers and suppliers, a lack of efficiency, transparency and insight were recurring themes in the discussion of “pain” points and, not surprisingly, these also were a focus of the emerging trends and solutions discussed.
Provider challenges varied by segment of provider, from standalone hospitals to small health systems to large health systems, although for each internal inefficiencies, limited availability of data and resources and a lengthy, complicated purchase process were among the challenges. Supplier challenges were similar, but through a different lens. They focused on high sales costs, a limited access to key decision-makers and a lack of visibility or insights into provider needs.
Jonas and Ken covered a number of key provider trends, including:
- Increasing openness to external partners who can help address key needs across the care continuum
- Perceived opportunities for partnerships include strengthening their ability to gather insights, with data, analytics and integration
- Growing market interest, particularly among larger systems, to reconsider how they use GPOs
- Work to address barriers that prevent broader usage of outcome-based pricing.
For suppliers, trends include:
- Expanding traditional offerings (via consolidation, technologies, services) to provide broader and connected solutions across the care continuum
- Non-traditional players leveraging their data and connectivity to disrupt the existing paradigm and capitalize on changing provider and payer incentives
- GPOs are changing the way they position themselves and the services they offer
- Distributors are also modifying their approach and placing greater emphasis on providing their own product offerings and value-added services
OpenMarkets Healthcare Supply Chain Broadcast Series is aimed at educating healthcare providers and equipment suppliers on how new processes and intelligence can be utilized to save valuable time, better collaborate with customers, and maximize efficiency. Sign up for upcoming broadcasts anytime.