Working with Distributors What You Need to Know

According to the Healthcare Distribution Management Association (HDMA), the U.S. healthcare system saves nearly $32 billion each year with distributor’s streamlined, aggregated ordering and efficient shipping logistics. SurgiStrategies spoke with ERI, a medical imaging equipment distributor to discuss some key components of what a distributor has to offer.

Q: describe the key roles of a distributor in the outpatient marketplace — how do they serve the niche between manufacturers and the end user?

Simply stated, a distributor must know what they are selling and the products’ appropriate applications. This permits a customer to receive accurate answers to presale questions allowing them to purchase with confidence. Furthermore, post sale support is just as critical. We often work with customers to properly integrate their new equipment and use it to its fullest potential. Given our extensive experience and our close working relationships with manufacturers, we can recommend best installation and operating practices to provide an optimal end-user experience.

Another important role for vendors is to serve as the flexible middleman between manufacturers and end-users. Given the manufacturers’ high overhead, they typically require significant minimum orders and demand very specific payment methods. Furthermore, manufacturers will often implement irregular production cycles, causing inventory surplus and shortages that are not readily apparent to the customer. This in turn may cause significant delays when ordering equipment and supplies. We anticipate these cycles and account for additional environmental factors. For example, we see a significant increase in gel-warmer sales as winter approaches and we adjust our inventory accordingly.

Q: can distributors bring value – added services that a direct – from – manufacturer approach can’t, and why?

In addition to providing purchasing advice and post-sale support, we also offer free equipment demonstrations and trials. This has been a very effective sales tool for our company and illustrates our confidence in our products and support. Customers are afforded the opportunity to put our equipment through their daily processes and workload. Relative to the manufacturers, our company is small by comparison but we believe that works to our advantage. Customers won’t become lost in the inherent bureaucracy of large companies, which allows for immediate and straight forward service. Customers frequently call in with a desperate need for equipment to be delivered the next morning. Our small stature allows us to quickly process and ship their order for overnight delivery.

Q: how are distributors addressing the perception that distributors are the expensive middleman in the healthcare supply chain, so to speak?

The first obvious solution to the “expensive middleman” perception is to not be expensive. We maintain low prices by controlling our overhead business expenses and make smart purchasing decisions from our manufacturers. The next step is to fighting this perception is to promote our value added services discussed above, i.e., equipment demonstrations, flexibility, and prompt customer service. Lastly, we believe we save our customers money by advising the right equipment for their needs and not pushing equipment that is disproportionate to their requirements.

Q: what advice can distributors offer to customers in terms of savvy purchasing practices?

Shop around for lower prices! This difficult economy has caused a strain on everyone’s budget and you may be pleasantly surprised to find that you can save a significant amount of money by searching the Internet for a better deal. Also, ask your distributors for bulk discounts or flat rate shipping options. You may be able to save money on shipping costs by combining regular orders. Do not be afraid to call and ask questions if it’s your first time ordering this particular piece of equipment. It also helps to be knowledgeable about the equipment’s intended application and any other equipment that it will be connected to. If you feel outside your comfort level, encourage the end user to ask these questions directly.

#1 Priority for Your Front Office Team

A surgeon can be the best surgeon in the area or the world, for that matter. But, if his/her front office isn’t doing its job right, this expertise means nothing. It’s the equivalent of having the best quarterback on the field, but the front line can’t block, the running back can’t run and the receivers can’t catch. A team simply can’t win, with only one effective player. So how effective is your team?

As in football, a front office must know the drills and apply them daily. First, they need good people skills. It’s a MUST that they always put the patient first. As the saying goes, “if Mama ain’t happy, ain’t nobody happy!” How does this apply to your patients? Think about it, if your staff mishandles an issue in the front office, they’ve not only upset the patient, but the patient’s family/friends and everyone sitting in your front office, i.e. other patients and potential customers. If you can do one thing for your staff, teach them how to handle difficult situations. First, train them to live and breathe the two rule standard as an initial reaction to a disgruntled patient: “Rule #1 – The patient is always right, Rule #2 – If the patient is wrong, refer to Rule #1.” By making the patient feel that they are right, the anger and emotions surrounding the situation are diffused immediately. Second, in resolving a patient issue, take them to a private area and work through the patient’s issue in a positive manner. If a staff member has done something wrong, require that the staff resolving this issue with the patient do 4 things: (1) admit wrong doing, (2) openly acknowledge what was done incorrectly, (3) apologize for the mistake, and (4) come up with an action plan that you will implement immediately to ensure this doesn’t happen again. If your staff does this, it’s a guarantee that your patients will come back, as well as become life-long customers and most importantly, tell their family and friends of the great experience they had at your office and/or surgery center and what a top notch ophthalmologist you are.

The second most important duty of front office staff is how they treat each other. The Golden Rule is always a good place to start. This rule is “treat others, as you would like them to treat you.” If you instill this in each and every one of your people and let them know that you expect them to live this daily, your personnel issues will be minimal. In the last year, one of cataract outsourcing team members violate this rule. Rather than treat it as an isolated incident and address with only this particular staff, the supervisor gathered the entire group together the day after the episode and presented them with a one page statement. He read it out loud and had discussions with them what this meant on an individual level, as well as a team. He went over points about how our society, as a whole, has become less professional and respectful of each another. They discussed this and it was agreed that the team needs to work harder in making sure these types of behaviors/attitudes don’t permeated their work environment. They discussed how they could have handled the situation differently. In the end, the supervisor, along with each staff member, signed this document acknowledging their pledge to treat each other professionally and with the utmost respect, at all times.

Another aspect of front office service applies to your facility staff. If you haven’t already done so, you need to encourage, promote, and require your facility staff to treat your office staff with the upmost respect and view them as a key customer. In addition, they need to do the same for all surgeon users’ office staff. Your people must view these groups of people as key customers, i.e. same top notch customer service, as the staff gives the patients. Granted not all physician offices have the greatest customer service-oriented people working their front desks. But, encourage your staff to look beyond this and to keep reminding themselves that a surgeon’s staff is the gatekeeper of the facility’s patients. Again, if these key people are happy, I’ll guarantee you the facility case load will increase.

Finally, your staff needs to be dutiful in completing the tasks of scheduling, pre-certing, registering, preparing patient for surgical protocol and expectations, billing and collecting payments. However you might remind them that if poor customer service exists and/or prevails, there will be no need to pre-cert, register, etc…, as customers will be non-existent. Therefore, the #1 priority must always be customer service to both external and internal customers.

Innovation in IOL Injection-Duckworth and Kent Acrysof IOL Injectors

Cataract Outsourcing recently conducted an interview with Dot Smith, the Director of Customer Service for Crestpoint Management Ltd.  Crestpoint Management Ltd. was previously known as Duckworth and Kent USA Ltd.  They are known for their premium lines of instrumentation for not only ophthalmology, but a number of other fields as well.  Crestpoint Management Ltd. prides themselves in service, customer satisfaction, and quality products.

CO:  Dot, please tell us about your position with Crestpoint Management and how long you’ve been employed with them.

DS:  I have served the last 15 years as the Director of Customer Service.  Over the years I have developed a broad knowledge base of Ophthalmology.  I handle a lot of customer work and personally follow up with each of them.  It is equally important to me, that my staff also follows up with all of their customers as well.  Crestpoint is known for our excellent customer service and dedication to those customers.

CO:  Tell us about your new Acrysof IOL injector.

DS:  Our new injector, the DK7797-2, is a front loading injector designed to accommodate the Alcon “D” IOL cartridge as well as the “B” and “C”.  It is a smooth, single handed delivery, ergonomically designed to fit any sized hand.  The injector can be pre-loaded.  It also comes completely apart for proper cleaning.

CO:  Was Alcon involved in the design and development of these Injectors?

DS:  Surgeons contacted us and asked for a different injector with a smooth mechanism.  Crestpoint (then Duckworth and Kent USA) took the design to Alcon.

CO:  What are some of the positive response you have gotten from surgeons that have used these Injectors?  Have there been any negative or critical responses?  If so, what were they?

DS:  The positive responses we have gotten have been great.  Surgeons truly enjoy the efficient and smooth one handed delivery.  We have not experienced any negative feedback in terms of the injector.

CO:  If you had to make one statement telling a surgeon why he/she should use this injector what would it be?

DS: It works better than any other injector currently on the market!!

CO:  Crestpoint Management will be attending the 2009 AAO meeting in San Francisco.  What other new or exciting products will you have on display?  Where can our readers stop to see you if they are out and about at AAO?

DS:  The items that we are most excited to have available to our customers are the Osher Changeable tips for forceps/scissors, Toric Axis & Reference Markers, Injector for the AMO Technis IOL, and Capsulorhexis forceps for Microincision.  Please stop by and see us at Booth #917.

We would like to thank Dot Smith and Crestpoint Management Ltd. for sharing their products and time with us.  Please visit their website, www.crestpointmgt.com, or stop by and see them at the AAO 2009 in San Francisco.

Bausch & Lomb Names Alan Farnsworth as Senior Vice President of Customer Service & IT and CIO

ROCHESTER, N.Y. — Bausch & Lomb, the global eye health company, has named Alan H. Farnsworth as senior vice president of Customer Service & Information Technology and chief information officer. He remains a corporate vice president.