Healthcare Matters

The major GPOs have been criticized for assuming the de facto role of industry “gatekeeper,” meaning they get to decide what technologies and innovations find their way into the mainstream. Although I understand the point, it never made a whole lot of sense to me, because it’s always been more advantageous for them to position themselves as “brokers.” In the last few weeks, two of the nation’s largest GPOs (Novation and MedAssets) hosted events, that in so many words are referred to as “technology and innovation” forums. Sometimes called “supplier showcases,” the obvious intent is for the GPO to provide its members/customers an efficient opportunity to meet and greet potential new suppliers.

In fact, MedAssets (NASDAQ: MDAS) just held its 11th annual Technology & Innovation Forum. Approximately 70 suppliers of high-quality medical products and services showcased the newest healthcare and clinical technologies to more than 400 MedAssets provider clients who, in turn, offered valuable, real-world feedback on the supplier offerings. During the day-long event, healthcare provider attendees–all of whom are key decision-makers for leading healthcare organizations–were introduced to a variety of innovative solutions designed to enhance care delivery, improve clinical performance, as well as contain costs.

The Technology & Innovation Forum was held in Dallas, Texas, in conjunction with the MedAssets Business and Technology Forum, a broader event designed to bring together suppliers and healthcare providers for professional networking, education and facilitation of new product development. In a survey conducted at the event, the majority of attendees reported that the Technology & Innovation Forum was beneficial to their interests.

“MedAssets Technology & Innovation Forum was a key event for Ochsner Health System,” said Grant Walker, vice president, Supply Chain, Ochsner Health System. “Not only were we able to glimpse the future of healthcare innovation, but we also had the opportunity to actively engage suppliers and influence product development.”

Participants were invited to exhibit at the forum based on several criteria, including degree of technological advancement of the product or service offering, as well as the product or service’s ability to reduce supply chain costs and/or improve care delivery. As part of MedAssets client-led sourcing structure, suppliers receiving a high ranking from event attendees and meeting MedAssets eligibility guidelines will continue through the sourcing process for consideration to be added to the MedAssets contract portfolio, which is comprised of more than 1,800 companies.

“In an environment where healthcare organizations continue to face rising costs and lower reimbursements, the need for cost-effective healthcare technologies and services that support high-quality care will continue to increase,” said Les Popiolek, senior vice president, Sourcing, MedAssets. “As the largest provider of comprehensive cost management solutions and a leading group purchasing organization, MedAssets is committed to fostering collaboration between suppliers and clients so that we can identify and incorporate into our contract portfolio the technologies, products and services to that will provide our clients with optimal value.”

The source for most of this piece is a MedAssets press announcement. I let it fly mostly unedited because it highlights what I personally believe is one of the least leveraged roles that GPOs could potentially play in the healthcare supply chain. Although GPO revenue models will continue to evolve and individual, nuanced deals will continue to get cut, GPOs still tread softly around new revenue opportunities, understandably not wanting to disrupt what’s already in place. I’m just pointing out that in every trajectory I can spot, the more GPOs invest in these showcases and the more seriously providers take them, the better off everyone will be. Great brokers don’t just manage transactions, they manage knowledge transfer.

—Tom Finn