Archives for July 2018

Can Salespeople Save Physicians from Selling-Out to Hospital Systems?

More and more physicians today are selling-out to hospitals and becoming employees. In fact, in a 2017 report for the nonprofit Physician Advocacy Institute, revealed that 5,000 physician practices and over 14,000 physicians have been ‘scooped up’ by hospitals between July 2015 and July 2016 alone. What’s more, since 2012 and 2016 (the time frame of the report), the number of hospital-owned physician practices had more than doubled.

During that same period, the total number of hospital-employed physicians has also increased by 63%, with every region of the country seeing this shift in a range from 83 to even as much as 205% in some areas.
This trend is indicative of several factors, among them, being the ever-increasing costs of running a business, more liability in a litigious society, and declining reimbursement, all geared towards a broader and more integrated system within the healthcare industry.

What are the Effects?

As a direct consequence this shift in the medical staff, Medicare costs have risen by as much as $3.1 billion from 2012 to 2015. Likewise, beneficiaries were facing $411 million more in expenses than they would have otherwise paid if the services were performed in independent physician offices.
From the doctors’ perspective, they’ve either yielded to the hospitals, as mentioned above or have since turned to other ancillary forms of income like Diagnostics, investments in Surgery Centers, Imaging Centers, etc.

How Can Docs Remain Profitable and Independent?

As reimbursements continue to decline and independent physicians take the brunt of this shift, it comes as no surprise there has been an increase in consolidation within healthcare.
Most physicians can’t afford this continual shift, lacking the necessary financial know-how to find additional sources of revenue and redirect their medical business back to the profitable state it once was. Some of these physicians are getting smart and turning to experts for help in managing the finances of their practice. In the end though, physicians are like everyone else – they like to receive money, not spend it.
It many spaces in healthcare the salespeople who surround the physician have become the “go-to” person for what new opportunities exist for ancillary income. With the existing environment these salespeople become one of the most important assets a physician can have. They become the conduit to the outside world and introduce physicians to opportunities they otherwise never would’ve known existed.
In other words, salespeople have an unprecedented opportunity to change how they are viewed by physician customers.
Salespeople: Get with the program!

Changing the Paradigm in Healthcare Sales

To do this, salespeople need to rely on more than intuition and instinct. They need to be plugged into their local market and constantly be networking their physicians and with other salespeople on the lookout for opportunities.
Salespeople can also benefit by making use of what state of the art technology can offer. ProSellus is a simple-to-use mobile application that utilizes market analytics to deliver critical data to salespeople in the field.
With it, you and your team will build value for physicians, helping expand their business. Without it, you’re just like every other salesperson pushing a product that the doc doesn’t want to hear about…
With ProSellus, you’re no longer only a salesperson, but a trusted business advisor to your physician customer. The highly competitive nature of Healthcare Sales demands it.

Conclusion

If you want to learn more about how to become a business consultant to your physician customers reach out to me on LinkedIn or check out our website.

As Commission Structures Dwindle, How Are Salespeople Compensating?

We are all fully aware that the sales business is no easy thing to master. By the end of this year, there will be more than 2 million salespeople working in wholesale and manufacturing alone, with retail, insurance, investments, and the healthcare industry employing even more.

When it comes to their total compensation, salespeople often have all kinds of special incentives such as expense accounts, prizes, bonuses, or company cars. Nevertheless, the bulk of their earning, with or without a salary, comes from commission. Period.

Commission Plans in the Medical Device World

From 2016 onward, the inflation rate in the US has risen annually by about 2%, on average. If things continue as predicted, this trend will continue to at least 2020. Salespeople, especially those in the cutthroat world of medical devices and diagnostics seem to be always complaining about the fact that they have to sell more products every year to remain at the same level, income wise.

The reason for this is somewhat self-explanatory. Commission plans in the medical device world rarely, if ever, increase. And for those unfortunate enough to not see a commission increase have to work 10 to 15 more hours a week to remain at the same income. It comes in addition to the already 60+ hours they put in, week in and week out.
How does this seem right?
As a direct consequence, many salespeople have turned to selling ancillary products on the side, somewhat like contractors for other companies. You’ve probably already heard about salespeople selling topical creams, PGx, metabolizers, etc.
By most standards, this is seen as a fire-able offense, but more and more reps are willing to take the risk, to recoup their lost revenue caused in large part by decreased commission plans or higher sales quotas.

Is This the Way to Go as a Salesperson?

It can be, but at a significant cost if it goes sideways. Don’t get me wrong, there are salespeople making MORE money selling on the side than they do at their own company. For them, it’s worth the risk, but for the majority of salespeople that isn’t the case.
The truth of the matter is the entire business world is changing, due in large part to the many technological innovations of the recent decades. Instead of looking for ‘part-time jobs’ or other such means of generating extra income, salespeople need to get ahead of the curve and make use of the technology that’s disrupting everything.
Why sell something else when you can sell more of what you already have… without getting fired?

Getting Ahead of the Curve

Trusting one’s gut was, and still is, an essential asset for every salesperson but it no longer is enough. In today’s world, salespeople can only remain relevant and competitive if they make use of computer-generated data and analytics, to better understand the market and the subtle changes that happen within it every single moment of every day.
In other words, every salesperson needs to become the “go-to guy/girl”- the person that has all the answers and the one who knows the deepest-most inner workings of the market. For all the knowledge and ‘street smarts’ that even the most talented rep has, this can only be achieved by making use of state of the art technology.

Conclusion

ProSellus is an easy-to-use mobile software app that will provide you and your entire sales team with the market analytics needed to thrive in this new-age world of sales.

If you don’t believe us, check us out for yourself: blog.prosellus.com

If you would like to learn more about ProSellus request your demo today or feel free to reach out to me directly: scottwalle@prosellus.com