Health Provider FAQ's

Frequently Asked Questions Modified on 01 February 2024

Health Provider Questions

 

  1. How would you describe your company?

Medical Supply Chain is an open-source, open-enrollment supply chain platform empowering healthcare providers, purchasing agents and material managers with self-directed supply-chain initiatives from international manufacturers of medical equipment and supplies.

  1. When was the company launched?

The company was founded May of 2000 and re-launched in February 2021 as the first enterprise-wide resource planning (ERP) platform specifically designed for supply chain initiatives later adopted as the gold standard by many of the largest health systems, GPOs and supply distributors.

The following two decades were spent working with top five consulting firms and congressional committees exposing how medical supply GPOs artificially inflate medical supply costs through discount contracting models. This led to the US Senate Judiciary Committee amending the False Claims Act (the “FCA”) when Congress passed the Fraud Enforcement and Recovery Act (“FERA”), and the Patient Protection and Affordable Care Act (“PPACA”). It was changed to the FCA in the healthcare sector so that indirect federal fund recipients, including hospital supply GPOs and distributors, could be held liable for the artificially inflated discount contracting models.

In 2021, when COVID-19 exposed the discount contracting models leaving healthcare providers without patient supplies, the company commissioned a new fully functional turnkey enterprise suite of supply chain technology tools that integrate, aggregate and merge existing technologies with international medical equipment and supply manufacturers of all sizes and specialties.

  1. How is Medical Supply Chain different from GPOs and distributors?

GPOs offer sourcing, contracting and volume discounts. Distributors offer products, warehousing and deliveries. Medical Supply Chain doesn’t provide any of the services GPOs and distributors offer, but our direct international manufacturers provide everything the GPO’s and distributors offer but at much lower costs and without discount contracting models or charge back penalties when you don’t meet volume commitments.

  • Medical Supply Chain remains neutral in its supply chain approach and exists purely for the benefit of the healthcare providers and international manufacturers by utilizing a “Median Cost Model” vs a “Discount Contracting Model”.

The Discount Contracting Model currently used by GPOs and distributors does not support global price stability when large discount offers and deficient volume commitments only lead to higher costs. In addition, with the discount contracting model, supply prices are set by GPOs and distributors, which need larger increases every year to pay enormous overhead costs and expenses when sourcing, contracting, warehousing, managing, tracking and enforcing their volume discount contracting models.

The Median Cost Model offers global price stability and lower supply costs over time because healthcare providers are purchasing direct from international manufacturers, eliminating discount contracting models and the overhead costs associated with sourcing, contracting, warehousing, tracking and enforcing discount contract models which artificially inflate supply costs and pressure healthcare providers to focus on discounts rather than the actual cost they pay for supplies.

  • Medical Supply Chain is an open-source open-enrolment supply chain platform.

First, open-source means healthcare providers are purchasing direct from international manufacturers with no GPO access fees that only increase manufacturing cost that ends up passed on to the healthcare providers. Healthcare providers are offered open-source to the manufacturers they choose to buy from while manufacturers are offered open-source to the healthcare providers they choose to sell to.

Second, open-enrollment means healthcare providers have no fees or costs when they enroll with the international manufacturers they choose to buy from. Volume discounts are provided directly from international manufacturers and don’t require any fees.

  1. How do you plan market adoption for international manufacturers?

Healthcare is nothing like any other market or industry in the world because healthcare providers don’t have the luxury of reselling products with a markup for profit when the products they buy are included in the procedures or services they perform. Healthcare providers are paid from procedures they perform by Health Insurance and Government Entitlement Programs or Private Payments when patients are discharged.

Either way, patients actually pay for the products, procedures and services provided by healthcare providers, which now brings focus to our market penetration strategy. Health Insurance, Government Entitlement Programs and Private Payments are the center of our strategy by helping healthcare providers spend less, as explained in sections 1, 2 & 3 above.

Our market penetration strategy starts with introducing healthcare providers to our open-enrollment “Median Cost Model” option and adopting international manufacturers as their open-source procurement method. We then deliver our message through former GPO and distributor sales representatives by turning them into manufacturer representatives.

For additional details on our “Median Cost Model” please contact us and one of our Representative will reply as soon as possible. Thank You!