Healthcare and the new economy

Edition: February 2009 - Vol 17 Number 02
Article#: 3115
Author: M. Sandler

Recent headlines on the nation’s economy leave little doubt that medical products distributors will face increased pressure in 2009 to help customers improve efficiency and cut costs.

This may seem like no small task, yet distributors already have many of the tools they need to reach these goals and potentially exceed them. Getting started can be as simple as taking a moment to assess your strengths and weaknesses, identify your goals, increase communication with partners and customers, and create a blueprint for success that utilizes three key strategies.

Get back to basics

Approach each of your accounts as if they are new. After all, if your needs and goals are changing, assume their needs are likewise evolving. Set up some time to discuss how their business is doing, trends they’re experiencing, and the type of support they need from their distributor.

Work together to develop a business plan for the coming months that assumes several scenarios, including: an economic upswing, a plateau, or a further decline.

For managers and executives, now is the ideal time to take a fresh look at A/R, inventory turns, and other key expense lines. Educate yourself about the latest trends in sales costs and sales force compensation via your industry’s trade association, stay abreast of the latest industry news and market shifts, and seek out opportunities to learn how best-in-class distributors are performing on key markers such as inventory and critical expense lines.

See and be seen

Resist the urge to cancel corporate meetings because of the current economy. Forgoing that next trip may save you in the short term, but could cost you in the long run.

Business events and industry gatherings provide valuable opportunities to learn and see how others are coping with the economy. They also provide a forum for you to explain how your company is positioned to meet emerging needs.

You can potentially generate new sales leads as well as forge new business partnerships that could prove more valuable now than ever before.

Keep your perspective

Raw materials and commodity costs fluctuated greatly in 2008 – creating ripple-effects throughout the supply chain. Such swings may continue in 2009. Nonetheless, you are in a unique position to control a priceless commodity: information.

Staying informed about the industry, new regulations, and issues poised to affect your business and your customers can help you prepare to handle a variety of changes. There will be multiple opportunities in 2009 to educate yourself and equip your team with the knowledge needed to maintain and grow sales in the new economy.

Upcoming educational events from the Health Industry Distributors Association (HIDA) include the 2009 HIDA Executive Conference in Dallas, Texas, which will feature renowned economist Alan Beaulieu of the Institute for Trend Research. Beaulieu will discuss how to make effective business decisions in the current economy and will provide information for distributors on ways to maintain cash flow and profitability in lean times.

The event, which will host keynote speaker and former presidential candidate Mike Huckabee, will also include education on:

Ways to improve manufacturer-distributor channel efficiencies

Profitable pricing management

Physician practice management trends

The consumer revolution.

To learn more about this and other education events, or to stay informed about the economy’s impact on distribution, visit www.HIDA.org or call (703) 549-4432.

Get expert insight …

from leading economists, healthcare futurists, and political leaders on the current economy and the new political landscape at the 2009 HIDA Executive Conference, March 3-6.

Visit www.HIDA.org for details.