Ditch the 1980s Playbook in a 2021 Healthcare World!

By FRANK RIPULLO II

Founder, Managing Partner

[February 8, 2021] – Like it or not, the business of healthcare has changed radically in the past year and if you’re not onboard and meeting the demands of this new environment, you’ll be left at the station asking, “What happened …?”

Without banging you over the head with more pandemic-related fallout we’ve all grown weary of, suffice to say it’s more important than ever to do your due diligence before approaching IDNs, GPOs or RPCs with the next great medical device. Change that was already coming has been kicked into high gear over the past 11 months and now we’re seeing:

-           Extremely limited face-to-face access between sales reps and medical professionals

-           Changes in purchasing services [i.e., digital platforms are utilized now more than ever]

-           Less travel and a greater need for more efficient communication

-           A rapid emergence of telehealth as a mainstream service

-           A strong desire on the part of facilities to seek new revenue streams

-           Expedited approval and contract processes [more on contracts in a bit], and …

-           An increase in the influence of social media in the business [Twitter and LinkedIn primarily]

Welcome to 2021 …

Until recently, it seemed most companies operated with a 1980s playbook – come up with a product, don’t worry too much whether or not the specific need exists, raise some capital, add some self-investment, knock on enough doors and, bingo, you’ll make enough sales.

Uh-uh. Welcome to 2021.

It’s time to back up and reassess, starting with your Value Proposition. Is it too loose? Do you need to revamp things? Are you clearly demonstrating why your product is not only innovative, necessary and best-in-class, but also delivers demonstrable positive outcomes and excellent value? If not, it’s time to roll up your sleeves. For hospitals to be willing to make a product switch, something has to be very, very compelling. More-than-ever-before kind of compelling. Maybe the old product fails,

maybe there are supply chain drop-outs, maybe the clinical outcomes aren’t as promised. Maybe it’s just too darned expensive. Point is, your product must fill most if not all the gaps of the existing product or you’ll never get the time of day.

Because our front-line healthcare workers and administrators have been stretched so thin these past 11 months, they don’t want to be bothered with hearing about your product unless you can clearly articulate and prove:

-        Greater efficiencies

-        Proven clinical outcomes

-        Excellent patient satisfaction scores

-        Meaningful cost-savings

-        Price transparency

Further, budgets are brutally tight or non-existent right now due to the extraordinary economic stresses of dealing with a pandemic. Ask any purchasing agent about “pain points” and they’ll point at triple markup on Personal Protective Equipment [PPE], highly profitable elective surgeries being put on hold, and the difficulty finding enough registered nurses to keep pace with the need.

A huge number of RNs took early retirement in the past year, many more are reluctant to put themselves in harm’s way and are choosing not to work, and others aren’t willing to travel. When you’re impacted like this, you end up in a situation where demand greatly outstrips supply and a bidding war erupts. A nurse who may have been making $35 per hour a year ago can now command upwards of $200 per hour in some markets. [Yes, you read that right.]

Skin in the Game …

As a result, the supplier attitude is: “Unless you can demonstrate great clinical and patient outcomes and are willing to do some co-development where I have some ‘skin in the game’, I don’t have time for you.” Even the word “contract” seems to be going by the wayside in favor of “co-development” and “co-profiting”. Hospitals groups are hemorrhaging money right now and they’re hungry for new revenue streams in order to stay afloat, not to mention turn a profit. I believe these pressures are going to lead to mergers and smaller players being swallowed up as 2021 marches on.

Those who embrace today’s all-new operating norm stand the best shot at success. Those who stay rooted in yesterday and continue to consult that 1980s playbook will quickly become irrelevant and simply go away.

Do your due diligence …

Which brings me back to my original point: It’s more important than ever to do your due diligence before approaching IDNs, GPOs or RPCs with the next great medical device. If you haven’t already done so, you must step back and reassess, starting with the “value prop”. You must also have clearly articulated, on-target messaging and you must know who to turn to in the industry.

This is where Excelerant Consulting can be your new best friend. We’ll shoot straight with you and let you know where things need to be adjusted or tightened up to enhance your chances of succeeding with IDNs, GPOs and the like. We’ll also validate that your latest and greatest medical solution is, in fact, tied to a problem that actually exists.

We can prep you for go-to-market and get you in front of the right people in the industry so you have the greatest shot at winning. We know who the Key Opinion Leaders [KOLs] are, we know the gatekeepers, we can open doors for you that might not otherwise open.

Bottom line: We know how to get you ready. And we know how to get the attention of the right people. To learn more, contact Excelerant Consulting at info@excelerantconsulting.com or call me at 949.842.2520.

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TUNE IN: Frank Ripullo II is a panelist on the MedTexperts Presents webinar series. Tune into the next webinar on February 25th at 10:30AM EST when panelists review an Orthopaedic Device case study of a company that transitioned from distribution to a direct-sales model using an OmniChannel strategy.

CLICK LINK TO LISTEN:  https://tcxlms.zoom.us/webinar/register/WN_71Vuf6WuTN-k6CfKb93YJg

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ABOUT FRANK RIPULLO II -- Frank is a highly accomplished senior executive, C-suite officer, consultant and entrepreneur with more than 20 years’ experience in healthcare, medical devices, and cyber-security. His greatest strength is envisioning “the big picture” as well as being skilled in business analysis, strategic planning, new product commercialization and corporate accounts. With his extensive experience in business development, Frank’s “sweet spot” is companies in the $1M-$100M similar-sector that are seeking new markets, product strategy development, scaling and accelerated growth.