ECRI, a medical-technology research firm in Plymouth Meeting, Pa., estimates that 30 Web sites devoted to medical supplies are already in business, and that number grows every day. Most target small physician practices. Because this market is so fragmented, the largest suppliers have typically chosen to focus on large purchasers like hospitals and giant group practices. Online suppliers are betting that the Internet can break down barriers that have kept large suppliers from working with smaller buyers. Most online shopping services act as middlemen, taking orders and passing them on to a wide range of traditional suppliers and, in a few cases, manufacturers.
Physicians pay no special fees to order online.
Instead, suppliers pay an upfront fee to list their products on a Web site, then transaction fees every time the site relays them an order. Some online suppliers, particularly those that focus on specialized segments of the physician market, stock and deliver products themselves. Physicians arrange to pay for the products, usually by credit card, and schedule shipping through Federal Express or UPS, or via a freight carrier for large equipment. Probably the single biggest reason that physicians will consider shopping online is savings. Streamlining ordering should produce considerable savings.