How the savings show up
The gap between distributor pricing and manufacturer-direct pricing on the same SKUs is the mechanism. Gloves make the difference easy to see because they are ordered frequently and specifications are straightforward to compare.
Distributor pricing folds the layers into a single number. Ordering direct takes them out, and the comparison is done on your own SKUs, so you can check the difference on the invoice rather than taking it on trust. You decide which items to compare and which to move.
Your actual savings
Depend on what the practice currently buys, the volume, and existing agreements. The mechanism is the same: middle layers are removed and the formulary standards are those already in use in operated practices.
How to run the comparison
Pick an item you already buy often
Gloves are the usual choice because they are high-volume and their specifications are easy to compare.
Match the specification exactly
The comparison only means something if it is the same product specification on both sides.
Compare the invoices
Put the price the practice pays through its current distributor or group next to the direct price for the same specification.
Repeat as you expand
Each category the practice moves can be checked the same way, on its own invoices.
What stays the same
The specification stays the same and so does the clinical standard. The items on the formulary are the ones used in practices the company owns and operates. The only thing that changes is the path from manufacturer to practice, which is why the comparison is a fair one.
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