[Installment 5] Cracking The Code: Winning in IDN/GPO Contracting with an Informed Strategy
INSTALLMENT 5
In Installment 5 of this 5-part blog series, we look at the fifth and final survey recently 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 17, 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 IDN/GPO 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 IDN/GPO processes are also critical for success.
Gaining favor in today’s competitive marketplace is like attempting a direct path through a loaded minefield – the concept seems straight-forward but execution demands precision and foresight. Meeting multiple expectations simultaneously 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 barriers to access and how best to overcome them …
SURVEY #5: WHAT’S THE BIGGEST BARRIER TO IDN SUCCESS?
Breaking into an Integrated Delivery Network [IDN] can feel like navigating a locked door with multiple keys. Vendor credentialing, supply chain gatekeeping, and lengthy Value Analysis processes make access more difficult than ever.
POLL SAMPLING
Survey Views: 1,269 National Account Managers, Sales Professionals
Voters: 58
Response Rate: 4.6%
Q: What is the biggest barrier to your IDN success?
3% Strict vendor credentialing
34% Access to supply chain decision-makers
33% Lengthy Value Analysis processes
29% Competing with large, established suppliers
KEY INSIGHT
IDN Success hinges on access to supply chain decision-makers and the speed of Value Analysis.
When asked about the biggest barriers to IDN success, 34% cited a lack of direct access to supply chain decision-makers, while 33% pointed to lengthy Value Analysis processes as significant roadblocks to success. This is especially true for smaller suppliers and new innovators, compounded by 29% struggling to compete with large, established suppliers, all of which can lengthen the sales cycle by months – or even years.
However, looking at comments received in response to the survey revealed another underlying issue for IDN success: Knowing who the key decision-maker is, and understanding the decision-making process.
COMMENT: “As a supply chain guy, if we’re the ones making ‘the decision’, something has probably gone at least partly sideways somewhere. Generally by the time SCM gets roped in, the need has been identified and we’re talking pricing and contract/terms instead of, ‘Are we doing this?’
Jake Wright, Senior Analyst, SCM —- Virginia Commonwealth University
COMMENT: “I think one of the challenges here is understanding who the decision-maker is. In a healthcare setting, supply chain should not be the decision-maker for any clinical supplies, but facilitators of the IDN’s process. It is critical for vendors to understand, at a high level, the process for the IDN they are pitching to. We find we have the best relationships with vendors who seek to understand and respect our process.”
Micah Gillezeau, Administrative Manager, Category Management, OU Health
COMMENT: “My comment is additive of both Jake and Micah. I think suppliers have to realize not every sale is quick and some require a combination of short-term and long-term tactics. It doesn’t matter how many resources you throw at a client, healthcare is slow. More importantly, you have to connect on all areas [about] how your product impacts every level within the IDN. What is the problem you’re solving? You’re probably not successful, long-term, on just price.”
Melanie Sweeny, National Accounts Manager
RESPONSE: “Melanie, love this perspective. As an IDN, we often seek a Major Accounts Representative from a vendor who understands ‘long game’ and is not governed by a commission. We love our local reps, but they can sometimes be short-sighted or struggle to understand the global strategy.”
Micah Gillezeau, MBA, Administrative Manager, Category Manager – OU Health
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KEY TAKEAWAY
The truth is, decision-making in healthcare is rarely the responsibility of only one person, but rather a complex matrix of Clinical, Financial and Operational [CFO] stakeholders, each with the ability to say “no”, but none having the collective weight to say “yes”. And, of course, there’s always the “decision not to decide” option. Navigating this matrix starts with understanding your product’s Value Proposition and uniquely communicating it to each CFO stakeholder in a compelling manner.
FINAL THOUGHTS
Knowledgeable industry professionals emphasize the need for long-term strategies, a deep understanding of internal operations, and the ability to demonstrate value beyond pricing to gain traction with IDNs. Vendor access is often layered and complicated by strict internal policies which speaks to the importance of the supplier aligning with IDN-wide goals.
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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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 segmentation, field sales optimization, offer development and contract negotiations. Most recently, David worked at Coloplast, Mölnlycke and Medtronic. His primary focus will be to use his wide-ranging background to help Excelerant clients experience meaningful growth and margin enhancement.
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ABOUT EXCELERANT CONSULTING
Excelerant Consulting is the go-to organization for med-tech companies that need to position products and services successfully for value analysis committees, contract acquisition, and sales modeling and execution to commercialize the launch of medical devices or services with Group Purchasing Organizations [GPO], Integrated Delivery Networks [IDN], or Regional Purchasing Coalitions [RPC]. Our clients rely on us to enhance their product positioning, navigate corporate contracting opportunities, and provide sales support to accelerate sales growth. -- For more info, contact Excelerant Consulting at info@excelerantconsulting.com