T
otal joints are a hot specialty and
orthopedic vendors want a piece of the
action. Leveraging your facility's cur-
rent case volumes and the expected
explosive growth of future demand to
deal exclusively with a select few companies is a
smart business strategy.
Look no further than Twin Cities Orthopedics
(TCO), an independent practice with multiple loca-
tions throughout Minnesota and western Wisconsin.
In 2012, leaders of the group's fledgling total joints
program made the game-changing decision to limit
its implant and instrument purchasing to just two
vendors. The arrangement, known as a dual-source
agreement, paid off in a big way. "At that time, the
move yielded us a pricing improvement of about 20
to 30 percent," says Aaron Johnson, chief executive
officer at TCO.
The group consolidated vendors to help grow its
business, and last year did nearly 2,000 total joint
procedures in its EXCEL program. At that volume,
an all-play model yielded even better pricing than
the dual-source agreement, which is why TCO
returned to a traditional bidding model.
Granted, many outpatient total joints programs
don't have that type of volume. "From a cost and
reimbursement standpoint, facilities that perform
200 to 300 cases a year benefit significantly from a
consolidated vendor model," says Mr. Johnson.
"The move puts them in a position to make their
program more successful."
Pricing discounts are a primary motivator for
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E N T S U R G E R Y M A G A Z I N E • N O V E M B E R 2 0 2 0
The Case for Consolidating Orthopedic Suppliers
Cost savings is only one of the benefits realized by
limiting the number of vendors who vie for your facility's business.
Jared Bilski | Managing Editor
BETTER TO ASK Now's a good time to strike a deal with vendors thanks to shifts in the orthopedic marketplace, according to Aaron Johnson, chief executive officer at Twin Cities
Orthopedics.
Ryan
Shaver
