Due to time and staff limitations, most institutions negotiate pricing by soliciting prices from a few suppliers for their daily, monthly, or possibly longer term volume of purchases. They typically do not know all the prices available and believe they are receiving the best price.
MedSource has member data (aggregated volume and pricing) and its own market intelligence based on local, regional, and international data to analyze pricing and leverage that information to obtain substantial discounts. MedSource thus saves its members money and time.
The key to success for MedSource and its members in obtaining savings is the leverage of their combined purchasing volume. This is done through a bid/proposal process and involves numerous components, including questionnaires, price sheets, product evaluations, and additional negotiations before a contract is awarded.
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