Supplier/Provider Reengagement After the Pandemic

By AHRMM

Throughout the COVID-19 pandemic, health care providers’ financial pressures stem from the suspension of elective or non-essential procedures. Under normal circumstances, these procedures generate millions of dollars per physician, per hospital and are the provider’s operating margin. Now they are generating nothing.

Hospitals however are beginning to talk about pivoting from this pandemic environment back to a standard model of care. Non-essential procedures will begin, but in a staggered manner. Now is the time for product and service suppliers to begin engagement with a call and a voicemail just checking in. Below are leading practices suppliers can use to engage their provider customers during the COVID-19 pandemic. These methods were discussed on the AHRMM Podcast, COVID-19 Health Care Supply Chain Solution: Supplier Engagement During the Pandemic.

  1. The right time to engage is now
  2. Show understanding compassion, empathy and patience
  3. Offer a short term plan
    1. Immediate financial impact to providers
    2. Additional discounts above contracted price
      1. Next 90-100 days
      2. waive drop-ship fees
      3. waive minimum $ amount for POs
      4. extend payment terms such as net 90 on all invoices dated over the next six months, etc.
      5. waive freight or dramatically reduce freight charges;
    3. Whatever you can do so once they place an order, there will be an immediate impact on their financials
  1. Offer a long term plan
    1. Help providers understand current state
      1. Providers goal: perform procedures
      2. Reality: elective procedures will return in an organized, but slow pace, and not all at once
    2. Provide a few new spend reports, such as those with and without pandemic freight
    3. Consider and promote how your product/service can reduce the complexity and cost of health care
  1. Overall, listen to supply chain and they will let you know what they need and when they need it.

For more information and education on COVID-19 listen to the podcast, AHRMM Podcast, COVID-19 Health Care Supply Chain Solution: Supplier Engagement During the Pandemic or go to www.ahrmm.org.

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