1. Increase overall cost savings: Companies that order items online are able to order smaller quantities, when necessary; comparison shop; and easily access order history.  Bottom line: online ordering allows your organization to be more nimble, with one central purchasing and ordering point to maximize time and profit. 
2. Access to Online Database: Another way that online ordering of medical devices and products streamlines business is through an online database of vendors , which ultimately means your organization spends less time searching for the inventory you need.
3. Reliability:  When medical inventory is sold online, much time is wasted if sellers do not note or are not upfront about damage or expiration dates. An online business that provides an inspection service can eliminate this problem by requiring inspection prior to placing the items online for sale. 

As part of the Obama administration's Affordable Care Act, drug and device manufacturers will soon be required to disclose financial relationships with health care providers. Effective March 31, 2013, this rule aims to bring a higher level of transparency to the relationships between manufacturers and providers. The belief is that patients deserve to know whether their providers have financial commitments or reap financial benefits from drug or device manufacturers, since these relationships can possibly affect the care being provided.  

This rule also extends to a Group Purchasing Organization (GPO) that is able to leverage the purchasing power of hospital systems or a network of doctors' offices. For example, GPOs and medsurg distributors would be required to disclose if there are any contractual financial relationships in addition to the bulk purchases they make.  Since the GPO may then sell the supplies purchased in bulk to physician's offices or small clinics at a lower rate then market value, it is easy to understand why transparency in these relationships is vital.

There are penalties associated with improper or incomplete filing of financial relationships. The civil penalties will be capped at $150,000 for failure to report and $1,000,000 for knowingly failing to report.

How is The Palm Tree Group’s Master Distribution Program different?

The Problem

The Solution

As medical distributors work to improve and enhance the delivery of medical care by providing the tools, devices, and products necessary for world class care, they have also been indispensable to the development of global purchasing standards.  These standards, created for entity locations, are crucial to reducing overall health care costs, improving supply chain efficiency, and ensuring fundamental patient safety.

A survey released in 2010, conducted by the Health Industry Group Purchasing Association (HIGPA), found that a majority of respondents were committed to the adoption of a global data standards system.  

While buying new medical supplies is a common practice for our industry, it comes with certain risks. For one, technological advances are made so quickly these days that even new equipment becomes easily outdated. As a result, you may find yourself having to spend even more just to stay current.

When you buy expensive medical equipment, you want to make sure you are getting what you want before you finalize a purchase. In particular, when it comes to overstock medical product distributors, you want one that is reliable and that offers quality equipment. Here are five things to consider before you finalize your purchases:

1) Experience and reputation: Because there is so much money at stake, it is smart to only buy equipment from medical product distributors with a solid reputation. There are few guarantees when you buy equipment at a discount, and getting involved with a disreputable firm could cost you thousands. HIDA Overstock is endorsed by the Health Industry Distributors Association, and our large client base speaks to our reputation.

2) Price: The main reason to buy overstock medical equipment is the sharp discounts that are available. When you deal with less experienced medical product distributors, you could end up paying more than you expected, when shipping costs and fees are taken into account. When you buy from HIDA Overstock, you can rest assured that what you see is what you get. There is no minimum order, no fee to participate and all orders ship freight-free. We guarantee at least a 15 percent savings. In addition, we maintain a clearance rack of heavily discounted items that are always available.

3) Safety standards: One risk associated with buying overstock is that older medical equipment might no longer comply with FDA regulations. Before you finalize a purchase, make sure the distributor has a system in place for identifying non-compliant devices. HIDA Overstock equipment is inspected to ensure that it complies with all regulations. Equipment that does not comply is set aside and not sold.

4) Usability: By the same token, purchasing used or refurbished equipment can result in worn-out devices that are no longer usable. Only reputable medical product distributors are keen to ensure that all equipment sold is in good shape. At HIDA Overstock, we only allow equipment to pass through our system that has at least one year of shelf life left on it.

5) Reliable Inventory: Medical companies want to know that they can keep returning to a single distributor for all their medical equipment needs. Because HIDA Overstock pairs buyers and sellers using proprietary software, we have a potentially limitless inventory. As a result, you can rely on a single distributor each time you need a new piece of equipment.

Medical supply companies face many challenges in their day-to-day operations. In particular, unpredictable markets and demand can make it difficult to manage your inventory properly. You run the risk of investing too heavily in any sort of equipment, leading to unsellable overstock. In addition, technological innovations can make your existing inventory outdated in a hurry. 

As of January 2013, according to new FDA regulations, certain medical devices will be considered taxable. The Patient Protection and Affordable Care Act in conjunction with the Health Care and Education Reconciliation Act of 2010 deemed that an excise tax would be imposed on certain items. As a result, it was deemed that a total of 2.3 percent of an item's sale price must be paid by the producer, manufacturer or importer of the taxable devices.

It's all part of the new health reform regulations listed in REG-113770-10.

Which Medical Devices Will Be Taxable?

According to the new regulations, taxable medical devices include any implement, apparatus, machine, instrument, implant, contrivance, in vitro reagent or other related or similar items. In addition, component parts and accessories are also included. Those devices defined as intended for treatment, diagnosis, cure and affecting bodily functions etc are impacted by the new regulations.

The provisions also recognize that the FDA may have missed some things in the process of categorizing relevant articles. If it becomes apparent that an item was overlooked or becomes relevant, it will be considered to be included in the taxable categories as soon as the FDA notifies the importer, manufacturer or producer that the item in question is taxable.

Any Exempted items?

Everyday items like contact lenses, eyeglasses and hearing aids that are normally purchased for private use by individuals are exempt.

How Will the New Taxes Impact Patients?

Health reform has been in consideration for some time. It is not clear how these new regulations will affect the average patient who relies on the now soon-to-be taxable devices. It would seem likely that prices could rise as a result.

Will the new regulations negatively affect patients? Will the potential rise in prices affect Medicare and other government programs that impact low income and elderly individuals? The answers to those questions and others remain to be seen.

1. There will be a larger demand for medical equipment and devices because there will be a larger pool of "customers".  We will see many more people who will be eligible for health care benefits.

2. As demand increases, we will see more products manufactured to meet the need.

3. As more devices and pieces of equipment are manufactured, we will see distribution plans and rates which are likely to lag from area to area.  Warehousing and  overstocking will become concerns for many of these manufacturers and their distributors.

4. Health reform will bring the inevitability of insured benefits seeking the lowest costs combining with manufacturer overstocks, we will see the need for solutions to the market and guides along the path between supply and demand.