Blog · Board and management reporting · Healthcare and med-tech
The ten sales KPIs a medical supplies or healthcare products company should run on, each with its formula, the export it comes from and what it tells you: contract compliance per facility, product depth per facility against the system norm, invoiced against contracted price, tier earned against tier priced, agreement expiry coverage, facility mapping completeness, standardisation opportunities, facility coverage at cadence, backorder and substitution impact, and system concentration. Also the three measures most suppliers miss, the figures to drop, the identities, and who owns what.
A healthcare supplier sells to systems that buy through many addresses, on agreements with tiers and expiry dates, under purchasing groups with their own rosters. The measures that matter start with knowing which address belongs to whom.
| # | Measure | Formula | Export | What it tells you |
|---|---|---|---|---|
| 1 | Contract compliance per facility | Purchases on the agreement ÷ eligible purchases, per facility and category | Ledger; contract file; membership roster | Facilities buying off-contract or from a competitor |
| 2 | Product depth against system norm | Categories bought by the facility ÷ median for facilities of its type in the system | Ledger; facility master | Facilities buying two categories where siblings buy six |
| 3 | Invoiced against contracted price | Invoiced price ÷ contract price, by line; over and under | Ledger; contract price file | Price errors that look like compliance |
| 4 | Tier earned against tier priced | Tier implied by trailing volume against the tier on the agreement, with the value of the gap | Ledger; tier thresholds | Discounts not earned; customers overpaying |
| 5 | Agreement expiry coverage | Agreements expiring in 180 days with a renewal plan and utilisation reviewed ÷ agreements expiring, by value | Contract file; CRM | Renewals drifting to the deadline |
| 6 | Facility mapping completeness | Revenue on ship-tos mapped to a facility and system ÷ revenue | Ledger; facility master | Whether any roll-up is right |
| 7 | Standardisation opportunities | System categories with three or more brands, with the supplier's share | Ledger; market or customer data | Consolidation cases to take to value analysis |
| 8 | Facility coverage at cadence | Revenue of facilities with a two-way contact within cadence ÷ revenue | CRM; ledger | Large facilities nobody has visited |
| 9 | Backorder and substitution impact | Value of lines backordered or substituted, per facility, and subsequent order change | Order and shipment files | Supply failures that move share |
| 10 | System concentration | Top ten systems' share of revenue, rolled up | Ledger; facility master | Dependence visible only after mapping |
Every one of these is computed per account, per rep and health system, and in total, and every one carries an identity that must hold before the table is shown.
Facility mapping. Treated as data cleaning, when it decides whether every other number is right.
Tier earned against tier priced. Tiers are set at signature and rarely checked against trailing volume.
Invoiced against contracted price. A line invoiced at list to a contracted facility inflates revenue and invites a credit and a complaint.
A health system is priced at tier three, which needs $2.0 million a year. Trailing volume is $1.3 million, tier one. The discount difference is worth $78,000 a year. Of 46 ship-to addresses invoiced, 9 are not mapped to the system and carry $210,000. Mapped, volume is $1.51 million: still tier one, and the conversation is either about recovering the volume from the four facilities that stopped ordering a category, or about the tier.
Revenue by ship-to. Roll up to facility and system.
Number of contracts held. Compliance and utilisation under each is what counts.
Calls per rep. Coverage at cadence, by facility value.
| Table | Must hold |
|---|---|
| Mapping | Ship-tos = mapped + unmapped; mapped revenue + unmapped revenue = ledger |
| Compliance | Eligible purchases = on contract + off contract |
| Price | Lines = at contract price + above + below |
| Agreements | Agreements = in force + expiring + expired still priced |
A table whose identity fails is a table with a row missing or counted twice. It is not shown until it is fixed.
| Measure | Owner | Reviewed |
|---|---|---|
| Facility mapping; invoiced against contracted price | Sales operations; contracts team | Monthly |
| Compliance; depth; coverage; backorder impact | Reps; regional managers | Monthly |
| Tier earned against priced; expiry coverage | Vice president of sales; contracts | Quarterly |
| Standardisation; system concentration | National accounts | Quarterly |
A measure with no owner is a metric, not a KPI; see KPI versus metric versus measure.
Ten measures from the ledger, the agreements and a facility master. Map the ship-tos first; then compliance, tiers and price errors can be trusted. Covirage computes all of them from the exports healthcare suppliers already produce, files only, with the definitions stated and the identities checked. See Covirage for healthcare suppliers.
A health system buys through dozens of ship-to addresses: hospitals, clinics, warehouses, surgery centres. Until each is mapped to a facility and the facility to its system and purchasing group, revenue cannot be rolled up, compliance cannot be computed and coverage is a guess. The share of revenue on mapped ship-tos is the first number to get to 100.
Agreements price by volume tier. A customer priced at tier three whose volume has fallen to tier one is getting a discount it no longer earns. One priced at tier one whose volume reached tier three is overpaying and will find out from a competitor. Both lists matter, and both come from comparing trailing volume with the threshold table.
A system buying three brands of the same category across its facilities. Value analysis committees want fewer. The supplier already strong in some of the facilities can show the system what consolidating would save. It is found by listing, per system and category, the brands bought and each one's share.