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GPO Cost Savings: The Timing Just Right

At its annual meeting in San Francisco earlier this month, ADA/M rolled out an exciting new member benefit: a group purchasing organization (GPO) designed specifically to help dermatology practices save money and improve their bottom line.

By joining the Aesyntix Physician Network, ADA/M members have access to discount pricing agreements on thousands of commonly-used medical/surgical supplies, as well as many popular business products and services.

Having been associated with ADA/M for several years now, I've seen countless ways in which the organization has delivered value to its members. Offering this GPO is yet another prime example of how ADA/M works to your advantage by ensuring you have access to resources directly aimed at improving your overall practice performance.

Many of you validated the need for a GPO during the ADA/M meeting, approaching me and my colleagues with questions ranging from "What is a GPO?" and "What does it mean to my practice?" to "How can I join and start saving?" to "Why haven't we seen this before?" This simply underscores the importance of such valuable resources provided through ADA/M—and the right timing for rolling out a GPO.

Helping You Survive Today's Economy

Being directly involved with the development of Aesyntix Physician Network, I am thrilled to see it gain momentum within the ADA/M membership—and the dermatology industry at large. As many of you know, I "grew up" in dermatology and have spent the majority of my career working with dermatologists across the United States. I am privileged to call many of you "friends."

To that end, I enjoy helping you—the practice administrator—and your physicians discover new opportunities to improve profitability and efficiency across your business. This is more important than ever given the current economic downturn.

Indeed, dermatologists face unprecedented challenges operating in today's business environment, including lower revenue, decreased collections, and increased costs—all of which adversely affect their financial results. To overcome these challenges, practices must seek every opportunity to reduce expenses and streamline operations.

Enter the GPO! And not just any GPO, but rather one that is tailored to the unique requirements of dermatology practices. Aesyntix Physician Network was designed as (and remains) the first and only dermatology-specific GPO. In short, we know dermatology, and we are focused on this specialty.

Leveraging the Power of the Network

As healthcare costs continue to rise, the procurement of products and services represents a critical area of spend that must be closely scrutinized. That's why hospitals, for example, have entire departments dedicated to negotiating lower pricing based on their purchasing volume and buying power.

Even the largest of dermatology practices don't have the same leverage as hospitals and, therefore, do not always receive optimal discount pricing. Or, quite frankly, the practice administrator or physician does not have the time to negotiate with individual manufacturers and suppliers, and therefore accepts whatever pricing they receive.

Aesyntix Physician Network leverages the "power of the network" to negotiate favorable pricing with manufactures and other business partners, resulting in cost savings and streamlined procurement processes for thousands of products and services used by dermatologists daily.

By aggregating physician demand, Aesyntix Physician Network has more leverage than individual practices and other associations when negotiating purchasing contracts (i.e., strength in numbers). Pricing established through these contracts is passed on to you—the member—resulting in significant cost savings. In essence, participating in such a GPO enables you to compete more effectively for better pricing.

Beyond Better Pricing

But there's more. In addition to discount pricing, Aesyntix Physician Network members gain access to exclusive value-added services such as advisory boards, educational programs, and other practice management resources.

All of this is designed to help you better manage expenses, improve profit margins, and discover new revenue-generating opportunities. And again, it's built with the dermatology practice in mind.

With a rapidly increasing number of practices participating in this GPO, manufacturers and suppliers are becoming more interested in working with Aesyntix Physician Network to serve the dermatology market. This extends beyond medical/surgical supplies to encompass specialty products such as fillers, toxins and cosmeceuticals. Stay tuned for more information on developments of this nature.

A True Win-Win-Win

By partnering with ADA/M, Aesyntix Physician Network can deliver resources and value that help you through this challenging economic environment and, ultimately, result in success for your practice. That is perhaps the most rewarding aspect for me, both personally and professionally.

Without question, the response to this GPO has been positive and the timing appears just right. There was quite a buzz at the ADA/M meeting around all of its activity, and I was pleased with the enthusiasm around the GPO announcement.

I am very excited to be part of this program and proud of ADA/M for acting on its strategic initiative to deliver a GPO offering to its members. Most important, I am thrilled to remain connected with you—my dermatology colleagues—in the spirit of making business more prosperous for us all.


For more information on Aesyntix Physician Network and how it can benefit your practice, visit www.aesyntix.com or email network@aesyntix.com.