Securing contracts with IDNs and GPOs is becoming more important for MedTech companies in order to maximize sales. There’s a reason that 73% of the MedTech executives in our recent survey said they expect their annual revenue from contracts to increase within three years. Unfortunately, most companies don’t have a plan or process that allows them to tap into the potential revenue of these contracts. In fact, all of the executives in our survey know they’re are leaving money on the table.
Health systems continue to consolidate, and the deal size of these mergers keeps rising with 16 ownership changes made on October 1st, 2024 alone. The high cost of medical technology makes this a practical move, helping larger systems spread expenses, enhance services and improve efficiency across their networks. Many systems see geographic diversification as a long-term benefit as well.
This trend has made it more difficult for MedTech sales reps for a couple of reasons. First, they’re now more likely required to get their product through a health system’s value analysis committee instead of just selling directly to a provider. Second, their companies struggle to keep contracts updated as health systems update rosters, or providers move around. Too often, companies are trying to track these updates in a shared spreadsheet and then sending an email blast to all reps to note the change. With everything a rep is managing on a daily basis, usually while traveling, expecting them to remember or look up hundreds - or even thousands - of contract details just isn’t realistic. They need this information at their fingertips in real time.
But even though executives know these manual processes aren’t very effective, they don’t know a better way to do it. Their plan to address these challenges is just throwing more money at a broken process, whether through increasing headcount or developing some sort of in-house solution.
Prioritizing on-contract opportunities over off-contract ones provides huge benefits to both sales reps and organizations as a whole. Organizations can maximize the value of their hard-earned contracts, avoid pricing or quoting conflicts and confusion, and use successes from existing contracts to strategically pursue new agreements. For individual reps, they face fewer steps to approval and an easier decision for providers.
Right now, reps are left flying blind. They need to figure out their own way to a sale and might not realize that they’re literally driving past an on-contract facility to go meet with a provider at a facility that’s off-contract.
If MedTech companies could get accurate, actionable contract data directly in the hands of their reps, they would shorten sales cycles and increase revenue immediately. Imagine the efficiency and acceleration a company could experience if they managed to overlay all of their available contract opportunities right on their existing targets. That’s just what AcuityMD Contracts does. It puts this information right in the hands of reps in a way that is directly actionable.
When you combine Contracts with your existing Targeting workflows, your reps will see all of the on-contract whitespace available to them. That might mean a provider at an on-contract facility hasn’t been sold to at all, or maybe they’re only using your product for 50% of their procedure volume. With this information in their hands, reps could spend the majority of their time maximizing contract penetrations, helping them hit quota faster while increasing revenue for the entire organization.
Tom Middleton
VP of Strategic Growth
AcuityMD
Learn how Intellijoint Surgical closed sales 3x faster with AcuityMD Contracts
