COVID-19 proved the point

Necessity: The Mother of Innovation

COVID-19 proved the point

Along with its challenges, the pandemic has forced providers to get creative in the ways they deliver care.

Smart suppliers have helped them. Speakers at the recent 2021 IMDA/HIRA Conference in Chicago spoke about innovations in processes and products that have emerged from COVID-19. IMDA is the Independent Medical Specialty Dealers Association, and HIRA is the Health Industry Representatives Association.

Speaking about financial management: Todd Nelson, chief partnership executive, Healthcare Financial Management Association

Forced to postpone many elective procedures because of the pandemic, hospitals and health systems had to figure out how to provide care to those who needed it while maintaining revenues, said Nelson. Many turned to telehealth, and others explored mergers and acquisitions, repurposing old facilities and reducing their building footprints. Next up? Navigating the risks and rewards of capitation instead of fee-for-service reimbursement.

Because of the pandemic, financial managers tuned in to the fact that supply chain management is far more than the purchase price of products and equipment. It also involves considering the country of origin of critical products, warehousing and distribution, and the potential benefits of buying from reliable local suppliers.

When considering the cost-effectiveness of a medical product or piece of equipment, financial managers think in terms of spending time and money appropriately to achieve the best possible outcome in terms of patient health and safety, said Nelson. It’s more about mission than margin.

Speaking about supply chain management: Ian O’Malley, director of strategic sourcing, UChicago Medicine

The pandemic forced supply chain professionals to consider the impact of national and global events on their operations, including hurricanes, wildfires, Brexit, trade wars, congestion at U.S. ports and trucker shortages in the U.S., said O’Malley. In fact, COVID actually has led to a more resilient supply chain, including: ʯ Improved demand planning and inventory management techniques. ʯ Development of techniques to safely reprocess critical PPE. ʯ Quickly identifying and qualifying new, unfamiliar suppliers. ʯ Potentially investing in U.S. manufacturers of medical products. ʯ Improved global sourcing capabilities.

Suppliers should be proactive in providing customers with the information they need to keep their organizations up and running, including units of measure, pricing agreements, even the size of packaging, said O’Malley. With over 1,200 stocking locations, UChicago Medicine needs to know!

Speaking about value analysis: Gloria Graham, Northeast region director, Association of Healthcare Value Analysis Professionals

With COVID-19 came backorders, outages, turn-on-adime conversions, said Graham. Given the preoccupation with PPE, value analysis professionals had little time to evaluate anything else. At the same time, though, the pandemic brought the clinical and value analysis teams closer than ever. And that could bode well for specialty dealers.

“We saw a tremendous increase in the visibility of value analysis throughout the organization,” she said. “We were on a good pace before COVID, but now we’re on speed dial with many clinicians. They are recognizing the work we do behind the scenes, and they’re asking, ‘What can we do to help?’”

For suppliers: ʯ Technology works! Zoom and Microsoft Teams may present a learning curve to some reps, but reps with new, innovative products should take heart: Value analysis professionals find it easier to get clinicians to participate in a Teams call than to gather them for an in-person product evaluation. ʯ Don’t wait for your customer to place a PO to let them know about backorders, particularly given the frequency of product outages during the pandemic.

Speaking about ambulatory surgery centers: Chad Giese, associate principal, Sg2

Medical professionals, consumers and health systems have been busy shifting care from inpatient hospitals to outpatient clinics and surgery centers, said Giese. Specialties include orthopedics, gastroenterology and ophthalmology. Today, payers are pressing the issue, refusing to reimburse providers for procedures traditionally performed in high-acuity sites. Medicare has been active in encouraging the shift, though recently, CMS has taken its foot off the pedal and taken on a more measured approach.

To stay competitive, hospitals must adapt. Suppliers can help by: ʯ Learning their hospital customers’ strategies for delivering outpatient care. ʯ Determining how they can help their customers build an outpatient program, not just by helping them manage costs (although that’s important), but providing direction on how to grow the program. ʯ Exploring consumer-centric approaches to marketing new technologies.

Speaking about innovation in product development: John Croushorn, M.D., developer of the Abdominal Aortic and Junctional Tourniquet-Stabilized (AAJT-S)

Innovation enters the medical market in many ways. In the case of the AAJT-S, it was the frequency with which Dr. Croushorn – while serving in Iraq and Afghanistan – saw soldiers die because traditional tourniquets couldn’t stanch the flow of blood in pelvic injuries or limb dismemberments. The military immediately recognized the value of the device, now it is up to specialty dealers to introduce it to the civilian market, including EMS and the emergency department.

A final note about innovation: It isn’t limited to inventors. “I truly believe everyone is an innovator,” Croushorn told conference attendees. People make improvements in the way things are done every day. “When you do, share it with others.”

Sales: It’s a process

Intuition? Indispensable. But without a consistent process to back it up, sales may suffer. Speaking at this fall’s IMDA/HIRA Annual Conference in Chicago, Dawson Cochran, managing partner with global sales training firm ValueSelling Associates, suggested medical specialty dealers and reps implement a three-part process for sales: 1. Research. 2. Questioning. 3. ROI.

Research

By failing to conduct proper research before a call, reps have only themselves to offer their customers – their opinions, their products, their perspectives. They can pitch hard, but, as in baseball, people tend to duck when they see a strong pitch coming toward their head, Cochran said.

Reps need to take time to research their customers. Search the Internet for clues as to what the customer’s goals are, and how they are performing against them. Public data can shed light on issues they are facing with infection prevention, patient falls or mortality, or operating margins. “If research shows they have a problem that you can help them solve, address it,” she said. If the customer is reluctant to bring it up during the call, probing questions on the rep’s part can help.

And if the customer doesn’t have a problem you can help them solve, find another prospect to whom you can bring value, she advised. To drive home the point, she quoted Albert Einstein, who said, “Strive not to be a success, but rather, to be of value.”

She offered a training tip to sales managers: At the next sales meeting, give your reps 20 minutes to conduct Internet research on one of their customers. Instruct them to identify the biggest problem they can help that customer solve, and how they would address it with the customer.

Questioning

What salesperson hasn’t been told to listen to the customer before making a pitch? It’s true, the best way to get customers talking is by asking questions – but don’t start with, “What keeps you up at night?” advised Cochran. “It shows you haven’t done your research.”

Begin with an open question, based on your research and understanding of the customer’s goals, then use probing questions to learn about difficulties they face in achieving those goals. After the customer shares their thoughts, repeat back what you believe you heard them say. If you got it right, that’s great. “And if you got it wrong, they’ll probably appreciate that you want to get it right,” she said.

Above all, reps should speak with their own voice. “Authenticity is important. The more real you are, the more your customers can trust you.”

ROI

When you talk ROI with your customer, you’re talking about value, said Cochran. It’s not just about price (i.e., money spent), but also about the potential impact of your products and services on their revenues. Can your product or service help the customer recruit medical talent or succeed in a value-based purchasing program? Can it help them address financial or quality problems they may be facing?

Just as important, can your product or service help your customer achieve a personal goal of theirs? If so, you’ve probably gained a champion in the organization.