Third-party suppliers are here to stay in healthcare. They not only help you fill the holes in procurement but can also bring significant savings with equal or even the same products that you normally buy. This just makes sense in today’s healthcare marketplace where we have seen major issues with everything from IV solutions, lab products, and even simple things like evacuated containers. This list could be endless, so it is wise so start to line up your third-party vendors to help your healthcare organization be prepared in case of an emergency.
Time is Money in Our Business
If a critical instrument is not available for a surgical case, that may cause the case to be delayed or even cancelled. Surgical time is premium time at healthcare organizations so you really must make sure that everything is available, but if you are missing one of the bread-and-butter instruments that the surgeon must have, you may not have much choice but to delay/cancel the case. Supply chain, the masters of alternatives, must start to incorporate more alternatives beyond their normal calls to other health systems or various national distributors which leads to adding third-party vendors into the mix.
Like an Ace Coming Out of the Bullpen for the Big Game
Who doesn’t like to have an ace in their bullpen that they can call on to get them out of a jam when it comes to product availability in a pinch? That is what your third-party suppliers should be. Product availability is paramount as nothing gets done without certain products. You can’t bill for a case if your surgeon must cancel their procedure because some innocuous instrument that has always been in stock is suddenly not.
Developing Partnerships Now Instead of In a Pinch
When it comes to any shortage of products, it will not only be hitting your organization but more than likely your entire region or even nationally. If you already have a relationship with a third-party vendor, they can help you a lot more easily than if you are starting the relationship from scratch in crisis mode. Let’s face it, you are probably not going to be high on the priority list without having that relationship in place because your third-party vendor will have to take care of his partner clients first. You can avoid these instances altogether by developing partnerships with third-party suppliers now versus at the time of crisis. It is always better to be proactive rather than reactive.
Hospital Has a Partnership with a Robotic Third-Party Vendor and is Happy to Find Additional Sources
Everyone knows that robotic cases are more costly than most other cases, but what’s worse is that you may be missing a vital instrument, staples, or a suture device that can jeopardize your case. That is why many of our clients welcome not only one third-party supplier, but some have two or three for certain categories. They know the value of having relationships with third-party vendors, especially when dealing with things like robotic devices.
You Can Save Considerable Dollars Off OEM
Saving money on OEM (Original Equipment Manufacturer) products is also a benefit to consider, as pricing can be very challenging and you want to get more savings on board wherever possible. Most third-party suppliers offer products that they can discount beyond what a group purchasing organization or custom contract with the OEM can cover. This may take a bit more time to facilitate in order to get more savings but will likely be no different than the time you spend working on implementing and changing products with your current portfolio.
What are the Negatives of Third-Party Suppliers?
With all the positives outlined in this article, you may be thinking that it is not all shiny and rosy with any vendor and wondering how working with third-party suppliers could be any different. I’m not sure this is a negative but there is a bit of competition with third-party vendors. If you develop a relationship with multiple third-party suppliers, you will learn the strengths and weaknesses of each one. Imagine you have a go-to vendor to get the best price on robotic devices and a secondary that may not have the best price but is close and always has available products when you need them. With already built relationships you can safely test the waters and have your value analysis teams validate every device to ensure that nothing goes awry. It is better to do these evaluations when you’re not under any timeline duress.
There are numerous benefits to partnering with third-party vendors. If you already have a few successful partnerships, I encourage you to keep exploring the areas where you can take advantage of this growing opportunity for savings and available products when the time comes. Of course, if you have had limited exposure to third-party suppliers, now may be the best time to explore the possible savings and products available for your own healthcare supply chain organization. It is beneficial to develop these relationships now.
| About Robert W. Yokl, President of SVAH Solutions |
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| Robert is the President of SVAH Solutions which provides value analysis, clinical supply utilization, and savings validation tools to help healthcare organizations gain the next level of savings beyond price and standardization. https://www.SVAH-Solutions.com https://www.SavingsValidation.com |
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