As a medical equipment distributor, you are most likely faced with a declining reimbursement environment, which is why accurate pricing is more important than ever!
According to an article in HIDA’s Streamlining Healthcare magazine, the best way to achieve better pricing is to work collaboratively with providers and manufacturers and they lay out four steps to making that collaboration a reality:
- Check expiration dates – Provider contracting has become more complex over the last few years. You can avoid last-minute, or past due, contract negotiations (which affect pricing accuracy) by keeping track of contract expiration dates.
- Think team – As a distributor, you have to administer the price, but the pricing process is really owned by the manufacturer. If you are going to improve your pricing accuracy, you need to work collaboratively with the manufacturer and provider to ensure that the price is right across the supply chain.
- Quick communication is key – When pricing changes do occur, communicate that back to the manufacturers and providers quickly so that they can update their files. Having a process in place that can help you identify mismatched pricing so that it can be corrected before an invoice is sent will also be extremely helpful.
- Stay in touch – There is far too much constant change in pricing to abandon communication with manufacturers and providers after contract negotiations are complete. Stay focused on these relationships.
It may seem like a lot of work to manage these relationships and keep your pricing accurate, but it is worth it! More accurate pricing brings with it fewer AP issues, time saved thanks to fewer pricing disputes and more efficient contract management, all of which contribute to your bottom line. The money and resources spent resolving pricing conflicts can often exceed the actual purchase order, so it is essential to gain better control over this area of your business.
If you need some help making your pricing more accurate and your contract management more efficient, request a distribution strategy assessment today and our experienced distribution specialists will help guide you to a solution that will meet your needs.