OpenMarkets, a software platform to buy and sell healthcare capital equipment, announced record growth in Q1 2017. The key highlights include a 900% increase in their network of suppliers since Q1 2016 and the launch of a new product, the OpenMarkets Exchange.
Looking to build on the momentum of a successful 2016, OpenMarkets began 2017 focused on the release of the OpenMarkets Exchange, a marketplace that connects buyers and suppliers of healthcare equipment. Since the product became available in a Beta stage, adoption of the software has increased at a rate of 13% per week. To support the implementation and enforce it’s commitment to better collaboration between providers and suppliers, OpenMarkets is offering the Exchange at no cost to providers.
“We’ve seen a tremendous response from both providers and suppliers,” said Tom Derrick, SVP of OpenMarkets. “I’m confident that the Exchange will become the global marketplace for organizations seeking to buy and sell capital equipment easily, in a safe and neutral environment. As with any marketplace, economies of scale create more value for both parties. We’re thrilled with the adoption of the Exchange and growth of our network, and remain committed to our mission to drive significant waste out of the healthcare equipment market.”
New business has also been a a big part of OpenMarkets Q1 growth in 2017. 3 health systems, including Guthrie Clinic Health System, Campbell County Health and CHRISTUS Good Shepherd Health system have joined OpenMarkets to improve their capital procurement process and reduce heathcare costs. After Q1, providers in the OpenMarkets community represent over 1,700 facilities, 300+ hospitals, and 46,000+ beds.
“OpenMarkets understands the challenges we face in supply chain,” said Grace Jackson, VP of Supply Chain at Guthrie Clinic in Sayre, PA. “We knew we needed to fix our capital process, and we found a solution that feels more like a partnership with shared goals than a platform. We’re excited to be a part of OpenMarkets and look forward to centralizing our process.”
Supplier memberships have also grown tremendously, and new clients include Roche, LG Electronics, Scotsman Ice, Medical Positioning, Inc., Quantum Medical, Medical Resources, Spirit Medical Systems Group, Serres, Shattuck, Mass Medical Storage, Orthoscan, Ziehm Imaging, AM Communications Solutions, Cassidy’s Pro Line, Tri WG, PT Medical Technologies, and CorVascular.
The steady increase in the employment of software to manage capital buying and selling can be attributed to the unusually large SG&A costs healthcare equipment suppliers experience and the complexity involved with various stakeholders touching capital in healthcare. OpenMarkets provides solutions to combat these issues with the overarching theme that improved supply chain performance leads to reduced healthcare costs for end-users.
Realizing the need for better collaboration between providers and suppliers, OpenMarkets began a supplier offering that launched in Q1 of 2016. “Communication between providers and suppliers is a complex process made more cumbersome by a lack of a centralized hub to track the conversations. An organized hub to manage contacts, documents, and communication drives efficiency and creates a more effective marketplace for all,” said Derrick.
Mass Medical Storage, a manufacturer of scope storage solutions, GI channel drying, carts and cabinets, joined OpenMarkets to lower their cost of sale and discover strategic opportunities. Win Hansen, SVP of Global Sales at Mass Medical, said, “Healthcare is a very unpredictable market and there’s significant pressure on equipment suppliers to reduce costs while helping to improve customers revenue by preventing patient and employee harm. OpenMarkets’ mission to reduce the cost of sale for suppliers aligns with our goals while still allowing a voice to emphasize our unified ability to help beyond just cost savings. We look forward to utilizing the OpenMarkets Exchange to help further this objective.”
As Q1 of 2017 comes to a close, 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. OpenMarkets recently published a report detailing purchasing trends for the months of April, May and June that can be downloaded from their website. They also offer monthly educational broadcasts where experts in the industry share their knowledge about capital.