|
Reduced cash outlay. First, the supply bundling arrangement let us set up a financing arrangement and ensured prompt supply deliveries. During a facility's start-up phase especially, capital can be tight. This helped us get over the hump by reducing our immediate cash outlay for supplies.
Simplified accounts payable. Even after our center took off, we've found that the arrangement greatly simplifies our accounts payable, since we are dealing with only a single rep. Moreover, we've saved money on shipping costs, which adds up over time. The arrangement has been a boon to inventory management as well. We always have what we need but are not stuck with excess inventory. Instead of going on a two- to three-month supply cycle, it is two to four weeks. It's also worth noting that we don't have to take items on bids. From defining what you're asking for bids on to waiting for manufacturers to respond, the bidding process can be a burden.
Fair advantages. Dealing with a single company has given us leverage for discounts and other considerations we might otherwise not enjoy. Our rep - who's become more of an advocate - reciprocates the volume we send his way by getting us significant discounts on new and demo equipment, free samples (including IOLs) and free or nominally priced supplies they need to unload (such as viscoelastics that are nearing their expiration date). Also, by working closely with one rep, we are able to keep our inventory on hand at a minimum level (such as a two-to-four week supply cycle instead of a two-to-three month cycle).
Not entirely exclusive. I still reserve the right not to be "tied in" to our supplier. If there is a new lens or viscoelastic I like from another company, I will exercise the option to make an "outside" purchase in addition to our regular supplies from the company.
The right way to go
The bundling arrangement is the right way for startups to go. A company will equip your surgery center with a phaco machine if you agree to purchase your cataract-related phaco disposables, IOLs and related consumable products from the company. Our cataract bundled price is reasonable. You can't beat the convenience. And you get a phaco machine, for many surgicenters it's a huge one-time expense. And from an efficiency standpoint, experience shows that the surgical clinics are most efficient when the cataract supplies are pre-sterilized and pre-packed.
Dr. Lee (writeMail("[email protected]")) is a spokesman for the American Academy of Ophthalmology.
|
|
Encourages competition. Rarely a week goes by that a company doesn't approach us with an offer to produce a cheaper procedure pack. I encourage that. One note of caution: Beware of the offers to track inventory for you and automatically ship to you. These almost always include automatic charges to your account - charges that you don't authorize.
Satisfy all of our surgeons. It's rare that one bundling arrangement is going to suit all your surgeons. Just imagine all your ophthalmologists preferring the same phaco machine, viscoelastic agent, intraocular lenses, gloves and post-op kit.
Itemizes the costs. The cataract bundled price may look good on paper, but the umbrella price hides the cost of each item. You think you're getting the whole nine yards for a great price, but it's rare that the companies will itemize the prices for you. For example, I can tell that I pay $22.50 for each of the 100 or so Alcon Custom Paks we go through in a month. I can also tell you exactly what's in each Custom Pak: drape, wipe, medicine cup, gloves, gowns, needle, syringes and a paper towel.
Lifts restrictions. There's a hidden danger in agreeing to bundle. Volume requirements prevent you from working with other companies and limit what new technologies your surgeons can try. And right now, with new toric, collamer and acrylic lenses available, we're in the midst of a lens boom. Restricting yourself to one company stifles your desire to try new things because you know you're obligated to meet certain quotas. If you bundle, you're likely going to miss out on new technology. You need to be able to try new things.
Saps your negotiating power. Shop around. If you're considering bundling, insist that each company itemize all the items in the bundle. Make it clear that you're not interested in a flat fee. One thing more: If bundling is the only way you can go, give yourself an escape clause. For example, if one of your surgeons doesn't want to use this lens anymore, you have a 30-day out. Include such 30-day parameters for each item. Exclusivity is in the best interests of the company, not the staff, surgeon or patient.
Reusables. Bundles generally don't include reusable items such as phaco tubing. Companies obviously want to sell you disposable supplies.
Sharpen that pencil
If you decide not to bundle, dedicate yourself to shopping for the best price. And be sure that the person who purchases supplies has some knowledge of what goes on in the OR. Our purchasing manager is a circulating nurse who knows what works and what doesn't.
Finally, never substitute quality forcost. Your surgeon's choice of phaco machine should be first, independent of everything else. Don't let anything cloud your view of what's going to give a surgeon the best chance to do quality surgery.
Ms. Stancel (writeMail("[email protected]")) is the surgical care administrator for David E. Brown, MD, the medical director of Eye Centers of Florida.
|
.svg?sfvrsn=be606e78_3)
.svg?sfvrsn=56b2f850_5)