EMDT_European Medical Device Technology

European Medical Device Technology, Spring 2014

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10 | Spring 2014 European Medical Device Technology emdt.co.uk newstrendsanalysis Barbed Fittings Luers Check Valves Inline Filters Stopcocks Tubing Custom Components Our motto Expect Excellence is more than just a corporate slogan, it's a customer guarantee. Ark-Plas specializes in the manufacture of over 4000 stock plastic components and custom part engineering. Let us help solve your unique problems with over thirty years of injection molding and extrusion experience. Call today. 870.453.2343 | www.ark-plas.com The increasing budget squeeze in the hospital sector has led to the implementa- tion of sweeping cost-cutting measures. Consequently, hospitals have turned to the practice of pooling their purchasing volume through large buying groups or, as is the case in some European countries, covering their demands through public tendering. Adapting to Different Stakeholders "Suppliers [medical device companies] no longer deal with thousands of hospitals, each purchasing from individual suppliers. Instead, they are facing big buying groups with a tremendous bargaining power and professional purchasing strategies," says Jörg Kruetten, head of the global life sciences practice at the consultancy Simon- Kucher & Partners. "In Germany, for example, about 80% of the orders in the hospital sector are placed by 20 purchas- ing groups." Purchasing, Kruetten says, was the focus of cost-cutting measures in the last five to six years because it is easier and quicker for hospitals to save money than by mak- ing clinical processes more efficient. "How- ever, in many countries and many product categories, we have reached the bottom of this development by now," he says. "The margins are so thin that the suppliers can- not get any cheaper without losing money; even the buyers have realized that." For medical device companies, this development led to different contacts within the hospital. While they had nego- tiated with doctors before, depending on the product category, they now have to talk to professional purchasing managers, medical controllers, laboratory heads and hospital administrators. In some coun- tries, such as Italy, local administration input is also significant because procure- ment is managed through public tenders. Overall, nonclinical decision-makers have become increasingly influential in pur- chasing decisions. Navigating a Buyer's Market: Strategies for a Changing Hospital Purchasing Landscape ES430946_EMDT1405_010.pgs 04.29.2014 03:39 UBM black yellow magenta cyan

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