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Healthcare manufacturing companies, including many small suppliers, continue to show support for health care group purchasing organizations (GPOs), calling GPOs vital to the sustainability and growth of their businesses and continued innovation in medical products.
Medical suppliers who have thrived through partnerships with GPOs include:
• Iris Diagnostics (CA) – Grew from $300,000 in GPO business in 2005 to $2.6 million in 2009; • Sizewise Rentals (MO) – Since partnering with a GPO in 2004, revenue climbed from $200,000 to several million dollars; • X-GEN Pharmaceuticals (NY) – Experienced 23% sales growth from 2007 to 2008 and launched five new products; • Belimed Infection Control (SC) – Reported annual sales growth between 20-24% since becoming a GPO supplier.
“As a supplier, our partnership with [a GPO] has been invaluable in marketing our products and driving the growth of our company," said Michael T. Lutz, Vice President of Sales for Wisconsin-based Tidi Products. “Working with them, we have gained clear understanding of market needs, expanded our markets, and grown market share.”
“Diversity suppliers are the smaller businesses that make up the heart of America,” Action Bag Company (IL) marketing manager Jaimey Wilman said. “GPO members have access to a wide breadth of products and supplier options and our business has the opportunity to reach a larger customer base and grow our business. At the same time we are providing supplies and services to the healthcare industry, [we are] keeping people employed and the American entrepreneurial spirit alive – this is vital especially in our current economic times.”
“Without such help from our GPOs my company would have crashed long ago,” Thomas Park Clement, CEO and President of Indiana-based Mectra Laboratories, said. “I must say, GPOs have been our saving grace.”