Pack Attacks: Customizing Physician Preference

Healthcare Purchasing News - March 2007

by Rick Dana Barlow

Managing physician preference at Lee Memorial Healthcare System and Sarasota Memorial Health Care System is a cut-and-dry process for LeeSar Regional Service Center and Cooperative Services of Florida (CSF).

"Basically, we get them whatever they want," Kelly Duncan, LeeSar’s custom pack operations manager told Healthcare Purchasing News. But Duncan quickly followed that economically risky and seemingly preposterous suggestion with this caveat: "But at our terms."

Duncan refers to the keen negotiating skills of CSF’s contracting team. When a new physician joins the organization, "we get the name of the supplies he wants and work with the contracting department to negotiate our prices," she said. "The majority of companies are willing to meet our pricing just to get in here for the potential to grow their business and market share with us." One side benefit for the vendor is that working with an organization like LeeSar is something of a status symbol, Duncan acknowledged.

"Of course, we will first try and standardize, but sometimes that is not possible," said Gayle Reynolds, CFO, LeeSar and CSF. "It then depends on the doctor and on the surgery. If it is a minor change with a low-velocity pack, and that doctor will use most of the items in the pack, then we will supply the current pack, and the hospital staff will pull the additional items necessary. At the other spectrum, if it is a major change where many of the components will not be used, and it is a high-velocity pack, then we will add a custom pack to accommodate that physician. We will look at each individual circumstance and do what is most cost effective, while still delivering good customer service."

Duncan recalled a new endovascular surgeon that recently came on board who used products that LeeSar didn’t and preferred his products. Thankfully, she said, another surgeon tried the products and liked them so much that he converted, which helped the CSF contracting team negotiate a better price.

"Communication is a huge key," Reynolds said. "Of course, we try to convert them. But you’re always going to have those who refuse. You have to pick your battles. It’s better to appease them than to fight them."