[Installment 4] Cracking The Code: Winning in IDN/GPO Contracting with an Informed Strategy
INSTALLMENT 4
In Installment 4 of this 5-part blog series, we look at the fourth of five surveys conducted by Excelerant Partner David Stone to gain a better understanding of why it is more challenging than ever to gain access to, go to contract with, and retain agreements with Group Purchasing Organizations [GPO] and Integrated Delivery Networks [IDN].
CRACKING THE CODE
WINNING IN IDN/GPO CONTRACTING WITH AN INFORMED STRATEGY
By DAVID STONE
Partner
[June 3, 2025] — For suppliers seeking to secure new agreements and grow existing contracts with Integrated Delivery Networks [IDN] and Group Purchasing Organizations [GPO], the path to success is filled with challenges — but also incredible opportunities.
Whether you're a large supplier aiming to expand your footprint, or a smaller company striving to establish a foothold, understanding the GPO/IDN contracting process is essential to short- and long-term success.
As you’re well aware, today’s healthcare landscape is changing rapidly and dramatically. Budget constraints, new competitors, IDN consolidation, data-driven decision-making, and the rapidly accelerating shift from fee-for-service to value-based care are all converging to make it more difficult than ever to secure and sustain contracts. The impact of tariffs on pricing is still a little unclear but is certainly causing concern for all involved – whether you’re trying to land on the proper price to offer or are on the purchasing end of the equation.
In today’s healthcare marketplace, decision-makers and influencers demand suppliers present a more data-driven clinical Value Proposition, as well as evidence-based ROI projections. And of course, you’ve got to convincingly differentiate your innovation as a solution that delivers improved patient outcomes, greater value, and enhanced operational and user efficiencies. Again, these must be backed by solid, contemporary data.
In a procurement-heavy environment, having strong relationships with decision-makers and understanding how to navigate myriad GPO/IDN processes are also critical for success.
Gaining favor in today’s competitive marketplace is like a round of Texas Hold ‘Em. The rules are straight-forward but assembling the right strategy and laying a winning hand that meets multiple expectations can be daunting.
To better understand these evolving dynamics, I recently conducted five LinkedIn surveys with National Account Managers and healthcare sales professionals. The results provide a real-time reading on the most pressing challenges and priorities shaping the future of IDN and GPO contracting.
Let’s review what we learned about overcoming financial barriers …
SURVEY #4: HOW ARE YOU OVERCOMING FINANCIAL BARRIERS IN HEALTHCARE SALES?
With hospitals and IDNs facing tighter budgets, stricter spending approvals, and increasing cost pressures, suppliers must find creative ways to close deals.
POLL SAMPLING
Survey Views: 1,221 National Account Managers, Sales Professionals
Voters: 56
Response Rate: 4.6%
Q: How are you overcoming financial barriers in healthcare sales?
39% Prove strong ROI with data
34% Price commitment, risk-share
27% Leverage GPO and IDN partnerships
0% Target post-acute care models
Key Insight
Budget Constraints: Data-based proof of ROI and a willingness to be flexible are winning strategies
With hospitals and health systems facing tighter financial pressures and slimmer margins, nearly 40% of respondents said their most successful strategy for overcoming budget constraints was to provide proof of ROI through clinical and cost-savings data. Decision-makers are prioritizing solutions that can demonstrate measurable, positive financial impact and reduce total cost-of-care over time.
Key Takeaway
In today’s healthcare environment, value beats price. Suppliers who frame their solutions in terms of total cost-of-care, long-term ROI, and operational efficiency stand a much better chance of securing and sustaining contracts. Having said that, 34% of respondents indicated a willingness to offer flexible pricing or contracting models – such as volume-based discounts, financing options, or risk-sharing agreements –was also an effective strategy
Notable Survey Feedback
COMMENT: “I’m curious to see the results. I find device companies tend to develop ROIs with products that just do not resonate with economic buyers. Does saving a few minutes of OR time matter if it isn’t enough time to add another procedure? In my experience, they’re also wary of length-of-stay claims because of how that can be managed.” – Bill Stewart, LCMHC, NCC, MBA -- VBC Health
RESPONSE: “Great point, Bill. I’ve often heard “unless I can eliminate an FTE …”? Of course, with the labor shortfalls, saving any time could relieve the pressure on everyone who’s doing more work with less time. I think there is great value in products that simplify processes so staff can practice more efficiently, and at the top of their license. How are others emphasizing differential value? – David Stone, Excelerant Consulting
COMMENT: “[Bill and David], it’s not eliminating FTEs but improving workflow so you can utilize, say, procedure rooms more efficiently so that you can distribute FTEs to other locations, it’s not reducing a few minutes of OR time but it’s about better outcomes with fewer readmissions, less rehab days. [Fewer] equipment down days. Overall value.” – Barbara Strain, Barbara Strain Consulting, LLC
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COMMENT: “There are several phases to sales today; first and foremost, ‘Why were your products developed and what issues do they continue to solve or address newly identified issues to support well care?’ Second, find the right, targeted consumers where the issues are in most need then establish what overall, value-driven ROI looks like. As Bill pointed out, it’s about gathering, analyzing and monitoring data to support decision-making, onboarding, margin alignment and overall outcomes. Providers look for reducing high-dollar specialty care and shifting to outpatient/community care. If it is strictly inpatient high-acuity-care-related, the value must be high to overcome cost-of-conversion and pass the budget justification equation. Great conversation-starter, Dave. -- Barbara Strain, Barbara Strain Consulting, LLC
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Final Thoughts
Suppliers who pivot towards solutions that showcase long-term cost-savings and operational efficiencies are most likely to succeed in today’s demanding healthcare marketplace. Moreover, embracing flexible pricing strategies will further bolster your ability to compete because you are able to demonstrate true long-term value. Those are the keys to securing and sustaining contracts.
More than ever, it’s critically important to have the right partner to guide you through the various complexities, demands and subtle nuances of IDN and GPO contracting. Contact Excelerant today at info@excelerantconsulting.com
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[In Installment 5, we’ll look at the results of our final survey entitled, “What’s the biggest barrier to IDN access?”
info@excelerantconsulting.com
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ABOUT DAVID STONE -- David has a proven background in sales, sales management, national accounts and national accounts team management. His areas of expertise include clinical laboratory diagnostics, remote patient monitoring, surgical device, advanced wound care, medical disposables and clinical nutrition. David has spent more than three decades creating and cultivating key relationships within the U.S. healthcare industry, including Group Purchasing Organizations, Integrated Delivery Networks and Regional Purchasing Coalitions. He facilitates executive-level introductions and provides assistance with value proposition design, market development, product launch, sales strategy, strategic account