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B-Line
September 6, 2008

Healthcare Service Suppliers Seek Entrée to Amerinet Members

April 2, 2008
 
The healthcare group-purchasing organization Amerinet brokers collections and other services to thousands of healthcare providers nationwide.
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One could say that Craneware Inc. didn’t need to become a supplier for Amerinet, a group purchasing organization for health care providers. Craneware, a revenue cycle management software firm with national reach, already had relationships with more than 875 hospitals, said Jim Wilson, Craneware’s president.

But becoming a part of Amerinet’s supplier network made it easier for Craneware to gain access to Amerinet’s large customer base, Wilson said.

“We’ve developed a lot of business with them,” said Wilson, who estimates Craneware’s sales have grown seven to 10 percent annually since joining Amerinet three years ago. “It couldn’t have worked any better for us.”

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St. Louis-based Amerinet acts as a broker for more than 25,000 acute and non-acute care health care providers nationwide. Its members include more than 2,200 acute care hospitals and 9,900 clinics. Last year, Amerinet’s members purchased $6.5 billion in goods and services from its suppliers.

Amerinet has about 1,400 outstanding contracts with about 700 to 800 suppliers in more than 65 product and service categories, including revenue cycle management, collections, financing services and credit card processing. Amerinet posts on its Website contracts for bid at least six months before their start date. Suppliers then go through the site to express interest in the contract. If the supplier is selected as a finalist on a contract, Amerinet begins the negotiation process on the products, services and terms, which can take anywhere from a few days to six months, depending on the product or service offered.

Allen Dunehew, Amerinet’s chief contracting officer, said the company is constantly in the market for new suppliers. “We don’t just offer a service when a member requests it,” he said. “We're always looking for new and unique products or services we can offer.”

Dunehew said Amerinet uses credentialing service Vendormate to screen potential contractors’ financial health and to check for product or service issues. Prospects also are asked to complete a questionnaire.

Dunehew said most suppliers sign three-year contracts with Amerinet and the contractors have to compete for renewals and expanded relationships. Amerinet markets its supplier’s offerings to its members and charges the contractors an administrative fee only if the contract results in a deal with an Amerinet member. Members, meanwhile, are charged dues to have access to the specially negotiated contracts and services with Amerinet’s suppliers. Depending on how the contract is structured, members may work directly with the supplier or through a distributor, Dunehew said.

Orlando, Fla.-based Craneware had formed relationships with a number of group purchasing organizations since it was founded in 1999, said Wilson. However, he wanted to join Amerinet’s network because of its focus on bringing value to the customer.

“It felt sincere to me,” he said. “Like someone I could trust to accurately represent our offerings and products to customers and work with us to expand our market and product.”

And signing on with Amerinet has been worth the time and effort, Wilson said. “They don’t sign a contract, put it on a shelf and go about their day to day,” he said. “They’re continually talking about how to take the relationship to another level to bring value to their clients.”

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