Plugging the Leaks in Your Spending Bucket > Outpatient Surgery Magazine > May, 2013
2 of 9 Utilize Generics and Private Label products
Buying brand-name supplies, devices and pharmaceuticals is always the most costly alternative. A better choice is to take advantage of the “private label” brands that many GPOs and medical distributors offer. Private label brands, which are like generics, cover such items as gloves, gauze, tape and bandages. They may even cover high-end products such as orthopedic supplies. The savings for these products come from eliminating the costs of sales reps and streamlining the supply chain.
You can also realize big savings using generic pharmaceuticals instead of brand names. Some examples of generic substitutions are Meperidine instead of Demerol and Sensorcaine instead of Marcaine. Patent protections for brand-name drugs are constantly expiring, allowing for new generics, so check periodically for new generic versions of drugs you frequently use.
Example of savings: A surgery center saved 37% ($3,500 per year) by purchasing their medical distributor’s private-label glutaraldehyde instead of the name brand.
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Barry Denny – CEO of Expense Management Network