Frequently Asked Questions
Q: Why was MedPricer founded?
A: MedPricer was founded to help hospitals and health systems cut costs by securing better contract terms and pricing. We enable healthcare professionals to save valuable time by implementing a highly-efficient electronic sourcing solution that was designed from the ground up to meet the needs of the healthcare supply chain. Further, we know that reducing cost in the healthcare supply chain is more than just saving time and money. It is about relationships, and we develop close relationships with our clients as we work together to meet their financial goals. By fostering extensive communication, the MedPricer process strengthens hospital-supplier partnerships.
Our mission is to help our clients provide the best possible care for their patients through the procurement of top quality products and services, at best-in-class terms and pricing. Contact us today to find out how we can improve your sourcing process and lower your supply chain costs.
Q: How long has the company been in business?
A: MedPricer was founded in 2006. The company’s staff has more than 100 years of combined healthcare industry experience in negotiating contracts with hospitals.
Q: What is MedPricer’s business model?
A: Our cloud-based hosted solution has no software to purchase, no IT investment required, and is offered at no cost to the hospital for most transactions. Suppliers who are awarded a given contract pay a nominal service fee to MedPricer upon accepting the contract.
Q: What is e-Sourcing?
A: e-Sourcing is an online negotiation platform that provides a framework for the procurement bidding process. MedPricer’s cloud-based solution includes a full service support team consisting of an e-Sourcing specialist and internal project manager. The e-Sourcing team provides the electronic RFP and pre- and post-bid financial analysis.
Q: How is e-Sourcing relevant for the healthcare purchasing process?
A: Hospitals must always look at how to balance cost and quality; to do more with less. Hospitals can benefit from MedPricer’s experience and technology to obtain more competitive bids, without requiring an IT investment or incurring a cost to use the service for most transactions. The MedPricer solution gives purchasing departments and clinicians the ability to determine which supplier’s offer is best suited for their hospital, while benefitting from MedPricer’s industry experience and technology to help drive the negotiation.
Q: How is MedPricer different from a reverse auction?
A: With reverse auctions, the focus is typically on reducing price and selecting the lowest cost supplier. MedPricer takes into account that the world of hospital procurement is more complex; other factors, such as service, physician or nursing preference, relationship with the supplier, may supersede price for some items. Therefore, our solution allows clients to compare bids line by line, so they can see the various factors contributing to price, and select the supplier providing the most attractive total value offering for the hospital’s unique business needs.
Q: How does the MedPricer’s process work?
A: The following diagram explains how our process works:
Q: How does MedPricer benefit hospitals?
A: MedPricer provides hospitals with a way to reduce contract costs and maximize the value of the purchasing staff with no investment in software or hardware, at no cost to the hospital for most transactions. MedPricer’s e-Sourcing solution can be used for physician preference items (PPIs), capital equipment, general supplies and purchased services transactions.
Q: How does MedPricer benefit suppliers?
A: MedPricer’s transparent process provides a level playing field for suppliers and opens up new relationships with hospitals in the MedPricer Network.
Q: What can customers expect in terms of cost and time savings?
A: On average, MedPricer clients have saved 17% over previous best pricing. This is accomplished by leveraging the client’s volume and MedPricer’s extensive market knowledge to demand deeper discounts from suppliers, and by fostering an environment of competition. As for time savings, MedPricer can typically shorten negotiation cycles from 4 to 6 months to just 4 to 6 weeks.
Q: What advantages does MedPricer provide over traditional, paper-based bidding?
A: MedPricer provides several advantages over traditional, paper-based bidding is:
1) Easier to compare competing bids: With paper-based bids, comparing various suppliers’ bids or even looking up historical prices on items is difficult. MedPricer’s interface makes it easy to compare bids in real time and stores an audit trail of all bidding event history, including emails, for future reference. The process also helps in standardizing the RFP approach across a health system.
2) Reduces purchasing workload: MedPricer reduces the legwork involved for purchasing staff to gather data, verify pricing, create e-RFPs and analyze terms and conditions. Our dedicated team provides on-site support for these functions and is with you every step of the way through the bidding process.
3) Proposal Analysis: MedPricer’s software includes proposal analysis of the competing suppliers’ bids, aiding the bidding process and accelerating selection of the winning supplier. Each bid can be analyzed line by line, allowing for analysis of key spend and value drivers. Complete bid history is stored on MedPricer’s secure, cloud-based private portal.