SEPTEMBER

2016

Distribution Gets Spotlight At AACC, AHRMM MeetingsIn August, Marshall Simpson, Owens & Minor, joined Linda Rouse O’Neill, HIDA, at AHRMM16 to highlight key steps distributors have taken to improve collaboration between suppliers and government agencies on pandemic preparedness. That same week, Kaycee Palumbo, VWR; Ben Thompson, Cardinal Health; and Ian Fardy, HIDA; offered a number of insights at the AACC 2016 Annual Meeting & Clinical Lab

Expo into topics ranging from lab testing trends to the effective ways distributors present solutions to customers. HIDA and its members present the value of distribution at a number of speaking engagements throughout the year. Visit www.HIDA.org/Speaking for a list of past and future events.

HIDA Laboratory Market Pulse™ Reveals GrowthDemand for lab products remains in expansion mode for the fifth consecutive quarter, according to the HIDA Laboratory Market Pulse™ test-volume-weighted utilization index. Demand expanded moderately in Q2 2016 with a positive index of 31.1, a 6.0 decrease from Q1 2016 when the index showed more significant expansion. National lab demand growth was driven by test volumes and specimens collected, while test send-outs, test turn-around time, and new assays remained flat. Positive index readings indicate slight, moderate, or extreme market expansion, while negative readings show contraction. To learn more about this resource, visit www.HIDA.org/MarketPulse.

Distributors Carry More Manufacturers Across All Markets The number of manufacturers carried by distributors increased across all markets in the past year, according to HIDA’s Distributor Financial Performance Survey: Summary Report. Alternate site distributors also increased their overall number of SKUs carried in inventory in the past year. The report provides detailed market-by-market financial statistics, such as inventory turnover, selling costs as a percentage of gross margin, and average labor costs. For more information, check out HIDA’s latest Distributor Financial Survey infographic at www.HIDA.org/Infographics.

Reverse Expo To Feature 18 GPOs, 45 Distributors The Reverse Expo at HIDA’s Streamlining Healthcare Conference will include an unprecedented 18 group purchasing organizations, representing 1.4 million hospital beds. The expo will also feature an opportunity to meet with 45 national and regional distributors, allowing suppliers to network with current and potential future trading partners all in one place. There’s still time to register, and expo participation is free for all conference attendees. To learn more about the conference, September 27-29, Chicago, IL, visit www.HIDASHC.com.

Patients Value Providers’ Commitment To Infection Prevention

In a 2016 HIDA survey of more than 1,000 patients, nearly two-thirds of respondents ranked a visible commitment to infection prevention and cleanliness as the number one characteristic they value in a healthcare provider. According to patients, providers demonstrating a high level of commitment to infection prevention have hand sanitizer gel, masks, and related products throughout their facility. Additionally, employees are regularly observed cleaning and sterilizing items as well as frequently washing their hands. The recently-published Horizon Report: How Medical Products Improve Consumer Experience contains additional insights into how medical products influence patient satisfaction. Visit www.HIDA.org/HorizonReport to learn more.

Visible commitment to cleanliness/infection prevention

Uses the most up-to-date medical equipment

Uses the most up-to-date technology

Ability to get laboratory test results during the same visit/appointment

Ability to get diagnostic imaging resultsduring the same visit/appointment

Quality products used during examination

Facility accessibility

Amenities 25%

32%

40%

43%

47%

56%

57%

66%

0% 20% 40% 60% 80% 100%

What Patients Say They Value

310 Montgomery Street • Alexandria, VA 22314-1516

Mark Your CalendarFOR OUR UPCOMING EVENTS

March 28–31, 2017Hyatt Coconut Point | Bonita Springs, FL

Planning for the 2016-2017 Flu Season Featured Presenter: Dr. Litjen Tan, PhD

Chief Strategy Offi cer, Immunization Action Coalition

Physician Market: Customer Needsand Market Trends

HIDA Speaker: Gina Smith, CMRP Director of Business Development, Research & Analytics

Visit www.HIDA.org/Webinars for additional webinar updates and access to past recordings.

Sep 222016

HIDA Executive Briefi ng

Released September 2016Top-level, in-depth knowledge for member executives on key supply chain business trends and government policy.

Infographic: SeasonalVolume Demand

Released August 2016A look into seasonal shifts in patient volume, based on provider activity and volume in all markets over a six-month period.

310 Montgomery Street • Alexandria, VA 22314-1516 Phone: 703-549-4432 • Fax: 703-549-6495 • www.HIDA.org

In This Issue

2 GOVERNMENT AFFAIRSHealthcare and Health Reform Dashboard

Key Markets

HIDA Advocacy Update

Regulatory Update

3 BUSINESS INTELLIGENCE4 Keys For Improving Patient Satisfaction

4 STREAMLINING HEALTHCAREHIDA Extended Care Market Pulse™

Reveals Six Consecutive Quarters Of Expansion

5 MUST-READ NEWSSummary Of Presidential Candidates’

Healthcare Positions HIDAAugust 11, 2016

6 How Telemedicine Is Transforming Healthcare The Wall Street JournalJune 26, 2016

11 How ‘Digitizing You And Me’ Could Revolutionize Medicine. At Least In Theory.Stat News July 15, 2016

14 The Value Of Patient ExperienceDeloitteJuly, 2016

September 2016

MATTHEW J. ROWANPRESIDENT & CEO

The technology, politics, and economics of healthcare are experiencing historic levels of

change. This Executive Briefing examines these shifts and their effects on the medical supply chain.

Patients increasingly approach healthcare with a consumer mindset. The article, “4 Keys For Improving Patient Satisfaction,” shows patients want their providers to offer timely test results and show a commitment to cleanliness. Suppliers have a vital role in helping healthcare professionals meet and exceed patient expectations.

The upcoming presidential election could also influence healthcare delivery and payments dramatically, with the major party candidates presenting different visions for the future. We summarize both candidates’ plans in this quarterly update.

Telemedicine now enables patients to connect to providers anywhere in the world, though it presents regulatory challenges. The Wall Street Journal article included in this quarter’s briefing explores these issues.

I invite you to join other healthcare leaders and discuss these issues at HIDA’s upcoming Streamlining Healthcare Conference, September 27-29, Chicago, IL. I hope to see you there.

EXECUTIVE BRIEFING

What Isn’t Changing In Healthcare?

Insurance Deductibles Are New Driver of Seasonal Volume

www.HIDA.org

% With Volume Increase +6% Or More

More Consumers Face High

Deductibles:Change in employer-sponsored plan enrollment: 2009–2014

Insurance Seen As Leading Cause of Q4 VolumeProvider Reported Reasons for Q4 2015 Volume Increase

56%

30%18% 18%

Individuals seeking additional care because they met their deducible

Respiratory illness

Influenza Individuals delaying seeking care because

of higher costs

Source: HIDA Research & Analytics, 2016

ABOUT In Q1 2016, HIDA investigated a spike in fourth quarter medical supply spending reported by our members and their customers. We conducted seven primary research studies of providers, including hospitals, physician offices, laboratories, and skilled nursing facilities, and conducted a literature review to understand this emerging phenomenon.

40%Physician Offices

Providers Reporting Q4 Volume Increase in 2015

70% of

physician offices

66% of hospital outpatient

departments

56% of hospitals inpatient

departments

54% of

laboratories

-29%

Health Maintenance Organization (HMO)

-16%

Preferred Provider Organization

+225%

High Deductible Health Plan (HDHP)

Provider Reported Reasons for Q1 2016

Volume Increase

27%Influenza

26%Individuals

beginning new plan year on

their insurance

26%Other respiratory illness

25%Laboratories

24%Hospital Inpatient

20%Hospital Outpatient

WEBINARS

In This Issue

Distribution Gets SpotlightAt AHRMM, AACC Meetings

Reverse Expo To Feature 18 GPOs, 45 Distributors

Oct 182016

September 27-29, 2016Hyatt Regency O’Hare | Chicago, IL

RESOURCES

January 17-18, 2017Biltmore Hotel | Coral Gables, FL

2016

2017

For more information or to register visit www.HIDA.org.

January 18-19, 2017Biltmore Hotel | Coral Gables, FL