In response to the Affordable Care Act (ACA) and its series of penalties and incentives to reward or penalize quality of care, hospitals across the country are re-evaluating their supply chain to match expectations. Because of these changes and cost-cutting measures, vendors and suppliers are facing increased difficulty aligning with buyers.
For suppliers, specifically smaller vendors, it’s becoming ever-important to demonstrate several core competencies to increase visibility in the eyes of hospitals. Following are a few key value propositions suppliers should remember to align with buyers at hospitals.
1. Focus on Strong Partnerships
While the ability to compete on price in today’s healthcare landscape is important, especially as budgets are increasingly being cut, it’s not the only way for suppliers to appear attractive in the eyes of hospital buyers.
For smaller suppliers, competing on price is not the most valuable option in terms of a differentiation strategy. Instead, suppliers should consider ways in which they can foster strong relationships with buyers.
According to an article in Modern Healthcare, buyers are looking for partners who understand the realities and pressures on them to increase quality as well as partners that are willing to share their risk in the volatile Healthcare climate. This article by Kevin Freeman, the Director of Provider Services at Medtronic, gives suppliers tips on how they can open up the discussion with hospitals about entering into risk-sharing relationships.
2. Make Your Credentials Known
Another important piece of the supplier-buyer relationship is transparency and information control. Credentialing software, such as Vendormate, is making this increasingly possible. These supplier-credentialing softwares give hospitals the ability to check vendors for HIPAA business associate (BA) compliance, screen and track suppliers for liability insurance and more. Credentials such as these add transparency to the supplier-hospital partnership and are essential to forming the collaborative and strategic relationships necessary to a foster mutually-beneficial outcomes. Suppliers can learn more about the credentialing process by visiting this website.
3. Easily Connect to Hospital Payment Models
Suppliers that avoid disrupting a hospital’s existing payment model make themselves much more attractive in the eyes of that hospital. Online invoice generators, such as Viewpost, are easily connected to a hospital’s existing accounting software and allows both parties to easily transmit e-invoices at a low cost. Suppliers that utilize this technology maximize cost-savings and efficiencies for the hospitals as well a themselves.
These value propositions are important. When patient care quality is on the line, a hospital must be confident that its supplier partners have its best interests at heart.
Hospitals need to leverage suppliers to help them achieve their goals. By developing these points of differentiation, suppliers position themselves more strategically and prepare themselves to develop strong buyer relationships.