| President Obama's new healthcare plan has some | | | | Most people in business, and in life for that matter, don't |
| people cheering, some people angry, and a myriad of | | | | worry about how they will respond to an untoward |
| predictions as to how it will affect America's future. | | | | event until it's staring them in the face. I'm not |
| Since no one has a crystal ball, it's hard to say for sure | | | | suggesting that we all walk around expecting the sky |
| how people who sell to healthcare will be affected, but | | | | to fall, but some advance consideration and planning |
| we do know that there will be changes. | | | | sure makes dealing with a crisis easier if it should |
| If you sell products and services to the medical | | | | occur. What if a customer calls you and presents you |
| community, you may be wondering if your business will | | | | with a critical situation that you must address at that |
| be affected under the new plan, and if so, how. While | | | | moment? Are you going to say the right thing? Do you |
| the changes will be phased in over the next four | | | | know how to buy time to consider your options or are |
| years, now is the time to prepare for the possible | | | | you willing to just roll the dice and spew out the first |
| implications. | | | | words that come to mind? The I'll worry about it when |
| When President Bill Clinton took office in 1993, there | | | | it happens attitude doesn't work for pilots and it's not a |
| was much ado about the sweeping healthcare | | | | good plan for medical sales professionals. The new |
| changes that he and Hillary planned to implement. I was | | | | healthcare plan may throw some things your way that |
| selling surgical implants at that time, and despite all of | | | | you have never dealt with before. Will you be |
| the "fear" that surfaced in the industry as to the | | | | prepared? |
| possible effects of the Clinton healthcare plan, I ignored | | | | Many medical sales representatives won't give the |
| the noise and sold what was in my bag. | | | | Obama Healthcare plan more than a passing thought |
| Over time, customer's fears of the anticipated | | | | until it hits them in the wallet. They tend not to think |
| changes began to impact me. Stable business that I | | | | about the what-ifs and consider situations only as they |
| had enjoyed for years was suddenly threatened. | | | | arise. Pilots don't have that luxury, and quite frankly, |
| Hospitals attempted to treat the specialized implants | | | | neither do you. When an emergency occurs, pilots |
| that I sold as commodity items. I was called into the | | | | have only seconds to consider their options and |
| offices of several materials managers who somberly | | | | respond immediately or their chances for a successful |
| told me that the hospital had capped what it would | | | | outcome decreases exponentially. Training for |
| pay for my products. They told me that they | | | | emergencies requires that pilots decide how they will |
| expected lower reimbursement for all procedures and | | | | respond to any possible situation in advance and then |
| that my company needed to take its share of the hit. It | | | | they practice each response over and over until it's |
| appeared that hospitals were getting together and | | | | second nature. |
| conspiring to drive better pricing by agreeing on the | | | | What does this have to do with you--the medical sales |
| same price limits (interestingly, if manufacturers do this, | | | | professional? |
| it's called price-fixing and it's a felony!). | | | | As I said, we don't know exactly how the Obama |
| Initially I was shocked, and I feared losing business and | | | | healthcare plan will affect your business, but you need |
| earning less through lower commissions. My | | | | to have a strategy for each possibility, plan your |
| company's management told me not to worry, since | | | | contingencies, and be able to respond instantly and |
| the surgeons who used the products were in control | | | | appropriately. Please don't misunderstand what I'm |
| when it came to selecting implants for their patients. I | | | | saying - I'm not suggesting that you should sacrifice |
| always enjoyed good relationships with my customers | | | | selling time to worry about the future. Sell what you |
| and they appeared to be happy with my products and | | | | have today with gusto and never sacrifice your selling |
| service. My business seemed secure, so I relaxed and | | | | time to worry about gloom and doom, but have a plan |
| tried to put the situation out of my mind. That was a | | | | for dealing with any threats to your sales. |
| mistake. | | | | Here are some things we may see more of in the |
| Three of the hospitals in my territory advised its | | | | future: |
| surgeons to vote for two vendors from a list of | | | | Mandates to reduce pricing to "keep the business" |
| companies who were willing to meet the hospital's | | | | A push towards lower-cost, less "deluxe" products, |
| price demands. My company wasn't even a choice | | | | i.e. commoditization of products |
| since it never agreed to the hospitals' price limits. The | | | | Bundling your products with other products at a |
| surgeons who used my products tried to fight it, but | | | | reduced price |
| the hospitals stood firm and encouraged the surgeons | | | | Reduced insurance reimbursement for your |
| to practice at other institutions if they wanted to use | | | | product and the associated trickle-down effect |
| implants other than the ones chosen. Despite doing | | | | Hospitals overruling doctors' product selections |
| what was considered to be a first-class job with my | | | | National and regional buying contracts |
| customers, I was locked out of the implant business at | | | | Hospitals changing from owned inventory to more |
| three of my highest volume accounts for two years. | | | | consignment inventory |
| Let me remind you that the events I just described | | | | Hospitals refusing to pay shipping, handling, and stat |
| were initiated with a health care plan that failed to | | | | courier fees (i.e. you or your company pay) |
| pass! The Obama health care plan is now a reality and | | | | Any possible changes to the way healthcare buys |
| while I don't have the prescient abilities of Carnac the | | | | or uses your product in the future |
| Magnificent, I know that the new health care plan will | | | | The possibilities I mention here are not new, as the |
| affect the way that medical sales professionals | | | | industry has been dealing with them for years. |
| conduct business in the future. Things will change that | | | | Chances are, you have already addressed some or all |
| will influence doing business with healthcare providers | | | | of these issues at one time or another. The question is, |
| and institutions - we just don't know yet what all of | | | | how will you respond in the future? Do you know |
| those changes will be. | | | | what to say if the hospital CFO suddenly calls you into |
| What can you, as a medical sales professional, do to | | | | his office and asks what you can do to help the |
| get ready for the unknown? | | | | hospital align with the new healthcare mandates? |
| Prepare like a pilot! | | | | What questions will you ask? How will you deal with |
| Chesley "Sully" Sullenberger was hailed as a national | | | | tight deadlines to respond? Has your company |
| hero after he guided U.S. Airways Flight 1549 to a | | | | disseminated information as to how the sales force |
| successful "water landing" on the Hudson River | | | | should respond to any business challenges or |
| January 15, 2009. Did Sully know that he was going to | | | | opportunities in the future that stem from the new |
| be handling an emergency that day? Of course not, | | | | healthcare plan? Have you memorized and do you |
| but he was prepared to respond because part of | | | | practice those responses so you won't be stammering |
| being a pilot is knowing how to handle emergencies. | | | | and stuttering as your customer awaits your |
| Interestingly, airline pilots train for a host of situations, | | | | response? |
| although a complete loss of power over Manhattan | | | | It's important to remember that the new healthcare |
| with a water-ditching as the best option is not | | | | plan will bring not only new challenges, but also new |
| something they specifically prepare for. The reason | | | | opportunities. More people will have reimbursed |
| everything worked out and Sullenberger's name | | | | healthcare in America than ever before. That means |
| became a household word is because he and his | | | | that there will be expanding markets for many medical |
| co-pilot, Jeff Skiles, kept control of the situation, | | | | products and services, including hopefully, yours. Those |
| explored their options, made a split-second decision as | | | | companies and sales representatives who are best |
| to which option was best, and executed flawlessly. | | | | prepared to immediately respond to all of the new |
| Everyone on Flight 1549 survived in "The Miracle on | | | | opportunities and challenges will own the lion's share of |
| the Hudson," and Sully's name became a household | | | | the business in their industry segment. |
| word. | | | | |