By The Numbers
Edition: March 2006 - Vol 14 Number 03
The numbers say what Repertoire readers already knew: Distributors are an important part of the healthcare supply chain.
According to the 2005 Distribution Market Report, published by the Health Industry Distributors Association, sales through distribution exceed 90 percent of the total volume in the small-physician and long-term-care markets, and range between 15 percent and 40 percent in the acute-care segment.
Total distributed sales grew 6.2 percent between 2003 and 2004. Sales to the acute-care market accounted for 60.3 percent of total distributed sales, while those to the physician market were 11.4 percent of sales. Home care (15.2 percent), long-term care (6.9 percent), treatment centers (2.4 percent) and clinical labs (1.2 percent) made up the bulk of other total sales.
Sales rep stats
Acute-care sales reps maintain up to 25 active accounts, while physician reps maintain 100 to 175, and long-term care reps maintain from 50 to 80. Depending on the customer market, a sales rep can make as little as one call each day (to a large hospital) or as many as 20 (physician offices).
Sales reps across all markets with more than 10 years’ experience comprise more than 33 percent of the sales force, according to HIDA.
The report, a product of HIDA’s Business Intelligence Service, can be ordered on the HIDA website (www.HIDA.org), for purchase by HIDA members and HIDA Educational Foundation Associates ($40 per copy) and by non-members ($595 per copy). For more information, contact HIDA at (703) 549-4432.