Blog · Wallet share and penetration · Healthcare and med-tech
How a medical supplies company finds the health systems and facilities buying the same clinical category from several suppliers, from its own invoice lines and the category's known competitors: brand count per category per facility, the supplier's share within the category, the systems where sister facilities have standardised and this one has not, the value of standardising at the system's own rate, and the clinical and contract conversation that follows.
A health system signed a contract that covers fourteen hospitals. Nine of them buy the contracted category almost entirely from the supplier; five buy it from three brands, because their departments chose before the contract or after. The supplier's own invoices, per facility, show the five. This guide sets out the standardisation measure, the sister-facility norm, the value, and the conversation.
Per facility, per category:
Supplier's share = supplier's sales ÷ facility's category purchases, where shared; else ÷ category norm for the facility's size Brand count = distinct suppliers in the category, where the system shares it
Per system, per category:
System norm = median supplier share across the system's facilities Outlier = facility share < a stated fraction of the system norm Value = (system norm − facility share) × facility's category purchases
Facility identifiers only.
Σ facilities' supplier sales in the category = invoiced category revenue, per system
A facility with revenue and no system fails it and is listed; those are the unmapped acquisitions the facility hierarchy is missing.
One system, one category, fourteen facilities.
| Facility | Category purchases | Supplier's share | System norm | Brands | Reading | Value at norm |
|---|---|---|---|---|---|---|
| F-01 to F-09 | 82% to 96% | 88% | 1 to 2 | Standardised | ||
| F-10 | $410,000 | 31% | 88% | 3 | Outlier | $234,000 |
| F-11 | $280,000 | 24% | 88% | 3 | Outlier | $179,000 |
| F-12 | $190,000 | 66% | 88% | 2 | Below norm | $42,000 |
| F-13, F-14 | 91%, 89% | 88% | 1 | Standardised |
Two facilities on the same contract as nine standardised sisters buy a quarter to a third of the category from the supplier. The proposal to the system is that F-10 and F-11 do what F-01 to F-09 already do, and the exhibit is the system's own table.
| Level | With | About |
|---|---|---|
| System | Supply chain lead, value analysis committee | Standardisation across the two outliers, at the contract rate |
| Facility | Department leads, with clinical support | Conversion, training, the sister facility's experience |
External benchmark as the norm. The system's own facilities are the argument.
Facility hierarchy incomplete. The outliers are not in the system and the comparison is never made.
Read as a sales target for the department. It is a system-level proposal.
Share without brand count where data is shared. Three brands and two brands need different conversations.
Mapped once, the invoice lines, the facility master and any shared purchase data produce the shares, the system norms, the outliers and the value every quarter. Covirage builds this from the exports as they are. The healthcare page describes the setup, and the facility identifiers guide covers the hierarchy the sister-facility comparison depends on.
It is better with it. Many systems share category-level purchase data with contracted suppliers, or the GPO does. Without it, the supplier's own share against the category norm for facilities of that size still finds the outliers; with it, the brand count per facility is exact.
Because they are the strongest argument. A facility in the same system, on the same contract, with the same clinical protocols, that has standardised on the supplier's product is evidence that the outlier could. The norm from the system's own facilities beats any external benchmark.
The system's supply chain lead and the value analysis committee, with clinical support. It is not a sales call to the department; it is a standardisation proposal at the system level, and the report is the exhibit.