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OpenMarkets, a software-driven marketplace for healthcare equipment, announced a second consecutive quarter of record growth in Q2 2017, recording sales three times those of the same quarter one year ago. Company leaders attribute the success to continuing strong adoption rates among healthcare providers and suppliers of the company’s newest product, The OpenMarkets Exchange.
Continuing the company’s pattern of growth established through 2016 and the first quarter of this year, The Exchange gained critical mass in Q2 as double-digit adoption increases and user successes reinforced its advantages – better collaboration between providers and suppliers, a more efficient equipment purchasing process, and cost savings on both sides.
“The Exchange is a result of OpenMarkets’ evolution from healthcare services to a product-centric company, and the response we’re seeing from healthcare tells us it’s a product whose time is now,” says Tom Derrick, Senior Vice President and Co-Founder of OpenMarkets. “The Exchange is a great fit with market conditions today,” he continues. “It helps hospitals buy equipment faster, easier, and at lower cost. For healthcare suppliers, The Exchange is a way to earn new business and reduce their cost-of-sale by up to 20%.”
By the close of the second quarter, providers in the OpenMarkets community represented more than 2,000 facilities and ~400 hospitals, both up 17% from the first quarter of 2017, representing 50,000 beds.
In addition to the numerous health systems who joined OpenMarkets over the past three months, several suppliers began selling equipment on The Exchange in Q2 2017:
• AMBU, medical devices and supplies, including scopes and mannequins
• Piedmont Medical Inc., refurbished medical/surgical beds
• Digirad, nuclear gamma cameras and diagnostic services
• Wieland Healthcare, furniture for the acute healthcare market
• Surgical Direct, surgical products
• ** Horton & Associates**, hospital grade televisions
• Metro, storage and transport equipment
• PENTAX Medical, endoscopic imaging devices and solutions
• Suburban Stationers, office supplies, furniture, and fixtures
• Mindray, medical equipment for patient monitoring, diagnostics, and ultrasound imaging
• Advanced Endoscopy Devices, endoscopy products and supporting items
• PT Medical Technologies, used medical equipment
• Tri WG, physical therapy rehab equipment
• Medical Resources, new, used and refurbished medical equipment and supplies
• CorVascular, vascular diagnostic systems and vascular access solutions
• Shattuck LLC, used asset disposition
Buyers of healthcare equipment can now use The Exchange to find rich product information and a simple way to communicate with suppliers, including each of those above. In total, The Exchange features more than 20,000 major and minor equipment products for hospital buyers to search, quote, and buy at discounts averaging 13.8%.
As providers and suppliers come together via The Exchange, they are creating a growing list of success stories. For example, an independent, acute care hospital in the Northeast needed to meet critical clinical equipment needs, but the planned capital budget was insufficient to buy all the necessary patient care equipment. Using the OpenMarkets Exchange helped the Purchasing Director reallocate the budgeted spend more efficiently by finding new suppliers for comparable imaging equipment, respiratory analyzers, endoscopes, and surgical tables. In 30 days, the hospital discovered the potential for $1.4 million in savings.
“We have a department savings goal of $1.6 million for FY 2018 and OpenMarkets has already brought us $1.4 million in potential savings by performing a function that we never had before,” the Purchasing Director said. “You guys are really making me look good by bringing you in!”
Equipment Buyer Carrie Williams of McAlester Regional Health Center in Oklahoma, also reports success with The Exchange. She shared the following with the OpenMarkets team: “Just wanted to let you know the quote request that I put in for the ultrasound bed came in really, REALLY handy last week. The director called down and asked where to get quotes from, I told her to come down, I have something to show her. I printed it off and handed her three quotes that I had already received! Thanks so much!”
For supply chain buyers like Carrie, continued growth in the number of suppliers using The OpenMarkets Exchanges means they are now able to get quotes for far more than just ultrasound beds. “OpenMarkets started out as a marketplace for capital equipment purchases, and now has evolved to include minor capital that is typically purchased with operational funds,” says Derrick. “Buyers can not only find major equipment like MRI’s from Philips and pediatric cribs from Hard Manufacturing on the Exchange – they can now find suction regulators from Boehringer and tableside exam lights from StarTrol.”
“For example, Scotsman sells ice machines, and their products are available on the Exchange just like MRI machines from Philips,” Derrick says. “We’re happy to welcome both major and minor suppliers because it is helping us evolve to a broader, more valuable equipment marketplace, making it easier for providers to think about The Exchange as a one-stop shop for equipment.”
Another example is Advanced Endoscopy Devices (AED), a leader in manufacturing, repairing, and servicing of endoscopy products and supporting items. AED joined The Exchange in Q2, and while their products are not considered major equipment, healthcare providers in the OpenMarkets network can now use the platform to access detailed information about AED’s high-quality instruments as well as repairs and servicing of endoscopic products, request quotes, and connect with AED representatives.
“We’re excited to be a part of the OpenMarkets community because by working together we’re creating a more efficient way for equipment to be bought and sold,” says Gayle Butler, Director at AED. “For us, making our endoscopy products and repair services available on The OpenMarkets Exchange has opened a new and very efficient sales channel. We’re reaching the buyers we need to reach, with a streamlined sales process that allows us to make them a better deal and still serve our own revenue and profitability goals.”
“As providers and suppliers embrace The Exchange and experience its benefits, they’re fueling our momentum,” says OpenMarkets CEO Michael Fineberg. “The Exchange is becoming the global marketplace to buy and sell medical equipment more efficiently. We’re cutting costs for both buyers and sellers with each transaction. It’s exciting.”
Building on two 2017 quarters of unprecedented growth, OpenMarkets continues to focus on building innovative solutions to improve the healthcare equipment buying and selling process, ultimately driving down the cost of healthcare for patients. To get started on the Exchange today, visit getquotes.openmarketshealth.com.