ambulatory care?

Discussion in 'Cardinal Health' started by Anonymous, Jan 23, 2010 at 12:02 PM.

Tags: Add Tags
  1. Anonymous

    Anonymous Guest

    I agree with your point about CAH Rms and reps thriving at Schein. If you can navigate through the bullshit and red tape at Cardinal, Schein will be a breeze. You could actually get out of your office and sell something.
     

  2. Anonymous

    Anonymous Guest

    Cardinal exits ambulatory because they don't know how to make a profit at that business. Who does?
    IDN business is not profitable, and it is high cost to ship to the doctors. No sense to have the business if you cant make a buck. If the company cant make money, a commissioned rep cant either.No rep model or salaried fixed cost reps might work.
    So Schein takes over and pays nothing to get that business. Now Schein has those losses on their books. The Schein bean counters don't like that and they need to figure out how to turn it around. Cost cutting and price increases to follow. Reduced backroom staff, and probably reps in the end.
    Schein benefits with some lower cost cardinal items but that's minimal in relation to total
    spend.
     
  3. Anonymous

    Anonymous Guest

    Hospitals acquire doctors. Distributor think they want that business. They talk to admin at the hospital and they get that the docs need service, higher cost to serve etc. So then they turn over the project to hospital purchasing. All the hospital purchasing people know is what is your cost plus? The distributor explains the cost issues, the service they will provide etc. The purchasing guys come back to whats your cost plus.
    So the distributor tries to sell the stuff at the hospitals cost plus, finds the business demanding, service oriented etc. They find out they are losing money.

    The doc offices are very unhappy, but unable to do anything about it.

    The answer is for the hospitals to pay more. Cardinal, Owens, and Medline are finding that difficult.

    BOTTOM LINE YOU HAVE TO MAKE A PROFIT, OTHERWISE WHY HAVE THE BUSINESS AT ALL. CARDINAL FIGURED IT OUT. WHATS OWENS GOING TO DO? MEDLINE FIGURES THEY CAN OFFSET THAT WITH NON HOSPITAL BUSINESS IN THE PHYSICIAN AREA, BUT THATS AN UPHILL BATTLE AS THEY HAVE NO SCALE IN THAT MARKET.
     
  4. Anonymous

    Anonymous Guest

    OUT!