Published 12/1/2007
Steven E. Fisher, MBA

Group purchasing program celebrates first anniversary

Results continue to exceed expectations

A year ago, the American Association of Orthopaedic Surgeons (AAOS) signed an agreement with Esurg Corporation for a new member benefit—a group purchasing program. Since then, the program has consistently exceeded expectations. In fact, Esurg recently noted that the AAOS had accomplished more during the first 6 months of the program than other affiliates had accomplished in 18 months.

Esurg gives AAOS members a single source for purchasing more than 16,500 medical and surgical products, 3,200 pharmaceutical products, and 25,000 office products. Orders can be submitted over the phone, via fax, or using an unlimited number of user-friendly online forms that can be tailored to a practice’s needs. Delivery usually takes place within 72 hours; orders placed by 2 p.m. often arrive the next day. An Esurg account executive is only a phone call away to resolve any issues that may arise.

Price consistency
Participation in the group purchasing program can eliminate inconvenient and distracting visits from industry sales representatives. It also ensures price consistency, whether the purchase is made by a solo practice in Washington, D.C., or a 30-doctor group in Seattle.

Already more than 300 orthopaedic practices have requested a customized savings analysis (CSA) from Esurg. Of these practices, 97 percent would realize savings by purchasing their “market basket” through the group purchasing program. Average savings exceeded 15 percent; in many cases, the practice could save more than 20 percent compared to their current suppliers. AAOS members receive an additional 2 percent discount relative to nonmembers.

In October, for example, sales to AAOS members exceeded $190,000. During the quarter from August through October, 270 orthopaedic offices submitted purchase orders;

80 percent of these offices were purchasing for at least the third time—a sign that the office has recognized the program’s value and can be expected to continue using it.

AAOS also benefits when members purchase their medical, surgical, and office products through the group purchasing program, receiving 1 percent of the total purchase volume on a quarterly basis. These funds help AAOS hold the line on the fees it must charge for members to attend meetings and educational courses.

See for yourself
See for yourself whether the AAOS group purchasing program can save your office money.

To see the products available via Esurg (and to “test drive” the user-friendly product order form), go to www.esurg.com/aaos. For more information about the group purchasing program, give me a call at (847) 384-4331.

Steven E. Fisher, MBA is manager of the AAOS practice management group; he can be reached at sfisher@aaos.org or (847) 384-4331.