Distributors, providers seek mutual value

Matt Rowan
President and CEO
Health Industry Distributors Association
Alexandria, Virginia

Journal of Healthcare Contracting: What are the two or three biggest concerns of HIDA members today? How – if at all – do those concerns differ from the concerns they had, say, five to 10 years ago?

Matt Rowan: Distributors are concerned with “where the puck is headed.” They are closely monitoring the shifting trends in healthcare: Where is care provided? How will it be delivered? Who will pay? This knowledge informs their go-to-market strategies and ultimately, their profitability and growth.

HIDA members are asking themselves, “How can we provide broader value to the provider organization? The distributor’s value as the “one-stop shop” might be defined more broadly in the future. For example, distributors might handle products that traditionally have gone direct from the manufacturer.

JHC: Let’s assume that holding the line on healthcare costs will remain an issue for at least the next 10 years, probably longer. Can you name two or three innovative things HIDA members are doing to help healthcare providers do so?

Rowan: Distributors are increasing their involvement in handling physician-preference items. They are also supporting providers as providers follow the patient throughout the continuum of care. The patient’s home is often the preferred care setting from the standpoints of quality of care, patient satisfaction and cost. HIDA realized we needed to more effectively cover the traditional segments in home care, such as DME/HME, but also expand into self-pay as well. That’s why we have formed the Home Care Channel Council.

JHC: In turn, what would HIDA members like to encourage healthcare providers to do in order to help keep a lid on supply chain costs?

Rowan: The low-hanging fruit has largely been picked. So, the entire supply chain will have to expend more energy to continue to drive new improvements and value. There is much to be gained from strategic, ongoing collaboration and communication. Understand how you influence costs and efficiencies for your trading partners. Help them understand where they drive savings, cost and inefficiencies within your organization.