Explore New Frontiers in Health-Care
Doors open wide for independent distributors probing this industry.
To say that there have been a few changes within the independent channel in relation to the health-care industry would be a bit of an understatement.
It is now well-known that in October of last year, American Solutions for Business, Glenwood, Minn., and International Business Solutions Alliance (IBSA), Bowling Green, Ky., pulled off a major coup by snagging Novation—the largest-volume group purchasing organization (GPO) in the health-care field. (Novation formerly contracted with major direct Moore Wallace, owned by RR Donnelley, Chicago, Ill.)
This spells opportunity for manufacturers and independents affiliated with American Solutions for Business and IBSA who are getting in on much sought-after—and hard-to-penetrate—accounts at hospitals and other medical facilities.
Manufacturer Data Label, Terre Haute, Ind., is throwing its hat into the ring. For starters, it will offer several hundred stock pressure-sensitive label products that are most commonly used by labs and pharmacies, as well as radiology, central services and nursing departments.
"Many of our customers are involved or are becoming involved with the health-care industry. And, because of the Novation contract, we decided to roll out our stock medical label offering in the first quarter of 2005," said John Strecker, vice president of sales and marketing for Data Label. "We want to help our customers by providing a competitive, trade- only source for a broad selection of stock health-care labels."
Strecker noted that the labels—such as those adhered to bags and bottles—that Data Label will manufacture match up with widely used computer software systems put in place by software vendors catering to health-care, such as SunQuest, Cerner and Meditech.
While Data Label is somewhat new to the medical arena, one of its distributors—Celtic Marketing, Centerville, Ohio—has been selling to the market for 20 years. Celtic President Mark McKinney, who is also executive vice president of IBSA, is thrilled with the Novation contract, forecasting that independents can reap many rewards as a result. "For instance, we're beginning to sell a lot of specialized laser wristband products for identification purposes," said McKinney. "In time, most hospitals will require this type of bar-coded ID for its patients as standard procedure. It's another new product to look for since so many doors are opening to independents."
