Mergers in the health care industry are limiting the number of clients distributors can target. Group purchasing contracts such as Premier Purchasing Partners Inc. are squeezing some distributors out of accounts. While hospitals, clinics and other health care firms pinch pennies, some distributors can't make heads or tails of what to do. At times, selling to the medical market seems as fun as a throat culture. But many distributors sing the medical industry's praises, lauding its wide array of printed products and its profit potential.
Few markets are more difficult to enter, they say, but few put more money in the pocket.
Since the late 1980s, hospitals have been under extreme pressure to reduce costs. Some distributors fled the medical market, considering it barren. Others scaled back efforts in the niche. At hospitals, materials managers and purchasing directors relish the chance to save megabucks on everything from cotton swabs to needles. Pointedly, however, distributors say the contracts don't make sense for printed documents, which often necessitate customization and personalized care.