This month's headlines
 

Awards, Networking, Forum are Conference highlights. Shawn Walker, principal, Bay State Anesthesia, North Andover, Mass., received the Ernie Douglass Award at the 2009 IMDA Annual Conference in Charleston, S.C. What was your $10,000 idea? Conference attendees share the money-saving, revenue-generating ideas they took away from Charleston. Electronic prospecting can attract customers, and save the IMDA member time and money. IMDA members are all too aware of the obstacles their reps face in reaching clinical decision-makers these days. Here's how one member is dealing with them. Making a difference. A religion major in college who had plans to go to law school but found herself in medical sales instead, was the recipient of IMDA's highest honor, the Ernie Douglass Award. An unlikely journey? In some ways, yes. In others, no. Employee separation agreement posted on Website. IMDA legal counsel Mitchell Kramer has posted a sample "Employee Separation Agreement" on the IMDA Website. It is a model to be consulted when a specialty sales and marketing organization is terminating an employee. The ROI of trade association membership. IMDA President Kevin Trout says that belonging to IMDA can help specialty sales and marketing organizations respond to and thrive in today's tough economy.

Shawn Walker, recipient of the 2009 Ernie Douglass Award

Annual Conference Awards, networking, Forum are Conference highlights

Shawn Walker, principal, Bay State Anesthesia, North Andover, Mass., received the Ernie Douglass Award at the 2009 IMDA Annual Conference in Charleston, S.C. The award, named after IMDA's third president, recognizes a person in the healthcare industry who exhibits support and encouragement of associates, a willingness to share his or her business and distribution knowledge, and professional salesmanship and ethics in business.

In addition to Walker's award, the IMDA Conference featured a number of educational and breakout sessions. Keynote speaker and healthcare futurist Joe Flower spoke about healthcare reform and technology, and South Carolina Hospital Association COO Tommy Cockrell spelled out the financial challenges facing today's hospitals.

IMDA member Dave Campbell of Vital/Med Systems spoke about the value of "virtual prospecting," primarily through e-mails, to develop leads. Well-executed, well-researched e-mail messages can start a conversation with a clinician and can be the deciding factor in getting an appointment, he said.

A breakout session on sales rep compensation explored the various options that specialty distributors can exercise to motivate their reps. Those options are straight salary, salary plus commission, salary plus draw, and straight commission, or "sink or swim." Each has its upside and its downside, said session moderator Tony Marmo of Martab Medical, Mahwah, N.J.

As it has for 10 years, IMDA hosted a Manufacturers Forum, which is an opportunity for manufacturers of innovative medical technologies to show their products to potential distributors and reps. In addition, Rick Pfahl of IMDA allied member Bovie Medical moderated a session for manufacturers on how to work effectively with specialty sales and marketing companies. "Specialty distributors need to be very clear with manufacturers on the services and benefits they can offer," said Pfahl. "They should avoid assuming that manufacturers clearly understand the flexibility offered by specialty distribution."

IMDA members can view a list of Manufacturers Forum participants on the "Members Only" page of the IMDA Website at www.imda.org.

Meanwhile, a new board assumed their posts. They are:

• President: Kevin Trout, Grandview Medical Resources.
• President-Elect: Anthony Marmo, Martab Medical.
• Secretary/Treasurer: Hal Freehling, O.E. Meyer Company.
• Chairman of the Board: Dave Campbell, Vital/Med Systems.
• Past President: Shawn Walker, Bay State Anesthesia.
• Manufacturers Rep: Tim Beevers, Beevers Manufacturing & Supply.

Directors:

• Tom Birmingham, Bay State Anesthesia.
• George Howe, Mercury Medical.
• Phil Reilly, Kol Bio Medical.
• Don Reiter, SRC Medical.
• Bill Schultz, IPV Medical.

Many thanks were extended to outgoing board members Ed Boracchia, Boracchia & Associates (former president and past-president); and Rick Pfahl, Bovie Medical, manufacturers representative.

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IMDA Update asked IMDA members who attended the recent Annual Conference if they walked away with a $10,000 idea, that is, an idea that, if implemented, could either save an IMDA member $10,000 or help them earn $10,000. Thanks to those members who took the time to respond.

"If [keynote speaker] Joe Flower starts talking and writing, recognizing us as a potential to healthcare solutions; and if his endorsement [of specialty sales and marketing organizations] as a potential solution gets me in front of some CFOs, the conference will be worth a mint. As always, interacting and getting to know people from all over the U.S. and Canada is, in itself, the most rewarding part of our organization. Shawn's tearful acceptance was the BEST. Very deserving." -- Duke Johns, Medical Specialties, New Orleans.

"[IMDA member] Dave Campbell's presentation on non-traditional [virtual, or electronic] prospecting was the highlight for me. We were exploring similar ideas and Dave pointed out, from his experience, what works and what doesn't. His insights will save us time and money, no doubt." -- Rick Pfahl, Bovie Medical Corp., Clearwater, Fla.

"Dave Campbell's discussion on non-traditional prospecting utilizing the Internet and e-mail was my $10,000 take-away. I'll be using it to keep in contact with our distribution partners on new promotional aspects of our products." -- John Kline, Vitaid Ltd., Williamsville, N.Y.

"Sometimes you don't realize if you picked up a $10,000 idea at the annual meeting until years later. At the present time, we sell over $3,000,000 in product from lines that I came in contact with at IMDA annual meetings. This year we have potentially located another vendor that I hope will develop into a substantial component of our sales basket. I do think that Dave Campbell's breakout was very thought-provoking and I plan to promote his concept in partnership with some of our suppliers. -- Jim Herrmann, Med Alliance Group, Carol Stream, Ill.

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CHARLESTON, S.C.-- IMDA members are all too aware of the obstacles their reps face in reaching clinical decision-makers these days. Compared to the past, when reps could cold-call on clinicians all day, even stopping by the OR lounge, today, they face a gauntlet. They must have an appointment and check in. They're questioned about their manufacturers' GPO contracts. They're greeted by nothing but voice mail when they call. And how about vendor credentialing?

The irony is, despite the walls that they have erected around their decision-makers, providers still expect IMDA members to be product champions. So, what does the IMDA member do?

One member -- Vital/Med Systems in Centennial, Colo. -- has developed an approach over the past five years that is yielding good results. President Dave Campbell calls it "virtual prospecting," and he spoke about it at the recent Annual Conference.

In a nutshell, virtual prospecting means using e-mail and other electronic media to stimulate clinicians' interest in new technology and improve the rep's chances of actually demonstrating it onsite. "I started with the premise that gaining access is much more difficult today," says Campbell. Building networks of clinicians is just as difficult. "Nobody has 100 percent of any network; and [the people in your] network age and die off." When new reps come into a territory, they have to build anew. And, as every IMDA member knows, reps no longer have the option of roaming the hospital to make connections and build relationships.

Why e-mail?

Innovators in medicine tend to be innovators in information technology too, says Campbell. "They have e-mail and they use it extensively." (Those who recoil from information technology may not be the best ones to approach about new medical technology anyway, he adds.) By reaching out to doctors or other clinicians via e-mail, you self-select your audience.

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"I've always viewed prospecting as trying to find a needle in a haystack," says Campbell. "You can [pull apart] the haystack one blade at a time and look for the needle, or you can run a magnet over it, collect all the needles, then separate the sharp ones from the dull ones." The latter approach is much faster. That's what e-mail messages can do.

Building a database takes time, but isn't a total mystery, he says. It starts with organization. Do you want to target clinicians by specialty? By geography? By those who are existing customers? Having made those decisions, the specialty distributor can begin to build an e-mail database. Where to start? Try asking your customers for their e-mail addresses. "If you explain to them that you want their e-mail in order to keep them in touch with the latest technology, they'll give it to you," says Campbell. "Asking usually works quite well; I'd say about 100 percent of the time."

Another approach is to "mine" for e-mail addresses. Most businesses -- including hospitals and physicians' practices -- use a standard format. Maybe it's the first initial followed by last name, then dot.com. Find out what that format is, then build from there. Campbell puts unvalidated e-mail addresses in a quarantine folder until they are validated. "The percentage that go through is between 40 and 80 percent."

What to say?

Campbell sends out messages in the form of a formal letter -- with an attractive, identifiable Vital/Med header or logo -- asking the clinician for permission to keep him or her up to date on new technology. Very few -- somewhere on the order of one percent -- opt out of receiving further messages. In all his messages, Campbell includes his name and contact information, so the recipient knows exactly who sent it. He adds that messages are often best sent either by the owner of the specialty sales and marketing company, or by a staff member with clinical credentials. "You need to raise the level of professionalism as high as you can, so people view it as such," he says.

When Vital/Med sends out an e-mail about a new technology, the message is concise, detailed, and appealing to the clinician. For example, a recent message referenced new findings on cerebral oximetry about to reported at an upcoming clinical meeting. Another explained the fundamentals of a fall prevention system and directed the recipient to a video showing how the technology works in clinical applications. (It's better to include links to clinical papers or videos rather than attachments, says Campbell. The reason is that messages with attachments are more apt to be blocked by anti-spam filters.)

By sending out e-mail messages prior to certain clinical shows or conventions, Vital/Med drives traffic to its booth or that of its manufacturers. If a new technology has been introduced by a manufacturer whose products are already carried by Vital/Med, the message underscores that fact, hence building on the goodwill and trust that the manufacturer has already built with the customer.

In an effort to alert family physicians (an audience on which Vital/Med reps had seldom called) to a new product that his company was carrying, Campbell paid for a placement of an article in the electronic newsletter of the state association of family physicians. The article included links to a product brochure, video and clinical paper. That newsletter demonstrates the power of electronic communication vehicles to present data graphically to lots of people, says Campbell. "If you tried to do it one by one, it would take forever."

Results

Campbell says he has probably gotten 50 solid leads over the last year and a half using the electronic approach to prospecting. "It might not sound like a lot," he says. "But when one of my manufacturers goes to a convention, I'm often lucky to get four leads. This is a lot more productive."

Well-executed e-mail messages can start a conversation with a clinician and be the deciding factor in getting an appointment. "It something we think is critical to stirring up a conversation," he says.

Up to this point, Vital/Med has focused its efforts on its clinical customers. But it is now building a database of "C suite" individuals, that is, CEOs and CFOs. "I want to talk to administrative people at a high level about patient-safety issues," he says.

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A religion major in college with plans to go to law school but found herself in medical sales instead, was the recipient of IMDA's highest honor, the Ernie Douglass Award. An unlikely journey? In some ways, yes. In others, no.

Raised in Sudbury, Mass., IMDA Past President Shawn Walker majored in religion at Davidson College, a small liberal arts college whom most Americans had never heard of, says Walker, until it reached the Elite Eight in the 2008 NCAA Basketball Tournament. Although she had thoughts of going to law school, her life took a turn during a job fair on campus during her senior year. There, David Greenberg, president and owner of Guilford, Conn.-based Clinipad Corp., spoke to Walker about a sales position with his company, which made custom kits and packs, and various infection control products. The company had a manufacturing plant in Charlotte.

Small company lessons

Until that point, she had no interest in sales, but she did have an interest in healthcare. And she definitely had an interest in Greenberg and his company.

"He was passionate about what Clinipad did," she says of Greenberg. "He was a real visionary, and he was a good model of the importance of being nimble and responding to the customer and giving them exactly what they needed." In other words, Clinipad proved to be the ideal training ground for an eventual future in medical specialty sales and marketing. "Working in a big company would have been tough for me after Clinipad," she says.

She worked for Clinipad for several years, then for Medex Inc. (later acquired by Smiths Medical), a manufacturer of intravenous catheters and syringe pumps. After working for a start-up whose needleless valve failed to receive FDA marketing clearance, she was approached by Bay State Anesthesia about a sales position. The person who hired her was Bay State Sales and Marketing Manager Tom Birmingham.

A passion for technology

Within a year after joining the company, Bay State underwent some fundamental changes. Its owner, Bill Galpin, died in a plane crash. Birmingham was essentially running the company, which had been founded in 1971. "We had good people working there," recalls Birmingham. "But Shawn showed some characteristics that were very unique. She was aggressive; very, very smart; articulate and fair-minded. She also has a passion for technology and the impact technology can have on patient care."

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In addition, Walker has an "innate understanding of the marketing of products," he says. "She has the ability to see beyond what [manufacturers] are saying and look at creative ways…to expand the presence of their product in the market, or to make the close that much easier. She reads a lot and absorbs information. She's strong clinically and from a marketing perspective."

Added up, Walker seemed like the ideal candidate to take over sales and marketing for Bay State, and to keep the sales force motivated and focused. So she stepped into that role. Then, in 2001, Bill Galpin's wife, Mary, sold the company to Birmingham and Walker, who remain principals today. "The biggest driving force for Shawn were the people who worked for Bay State," says Birmingham. "She truly liked them, and she wanted to keep what they had here."

IMDA involvement

Galpin and Birmingham had been involved in IMDA, and Walker followed their lead. "The beauty of IMDA is that there are so many people who have influenced me," she says. For example, Richard Manley of CVC Inc., and IMDA's 2001-2002 president, encouraged her to join the board. She soon found herself involved in planning IMDA's annual conferences. A member of Vistage (formerly TEC), she was acquainted with excellent speakers, and she wanted to bring some of that expertise to IMDA.

As a board member, she watched closely the enthusiasm with which the late Bob Wahlenmaier of Products for Surgery exercised his role as president from 2003 to 2005. "One of the things I appreciated about Bob was that he was a really positive individual," she says. "He really believed in specialty sales and marketing, and he was generous in his attention, time and knowledge." It was Wahlenmaier who orchestrated IMDA's first agreement with Medmarc for product and professional liability. "By force of will, he was going to make it happen," she says.

She received further training for her future role with IMDA as president-elect during Ed Boracchia's tenure as president from 2005 to 2007. She stepped into the president's role at the 2007 Annual Conference in Coeur d'Alene, Idaho.

IMDAwoman

When announcing Walker as the recipient of the Ernie Douglass Award at the recent Annual Conference in Charleston, S.C., Duke Johns of Medical Specialties posed this question to attendees: "What is faster than a speeding bullet, more powerful than a locomotive, able to leap tall buildings in a single bound?" The answer, he said, was IMDAwoman, that is, Shawn Walker. Then, borrowing from the marketing pitch for United Parcel Service, he said Walker was the person to call on when you "absolutely, positively have to get something done."

Indeed, as president, Walker immediately tackled some big issues. "What I tried to do was increase the visibility of the organization, and elevate the perception that others -- especially other associations -- had of it," she says. "I really wanted to elevate our presence in the marketplace. But I also wanted to try to provide programs that everyone needs, like sales training."

IMDA Announcement Refer a member and get $50 Every time IMDA gains a member, our collective voice grows louder, our collective wisdom becomes greater, and our collective influence in the market grows. It's good for everyone. And there's no better source for new members than current ones. After all, you know the market, you know the people. That's why IMDA is offering members $50 for every new member who joins as a result of your referral. So when you're walking the floor at your next trade show, or taking a break at your next sales meeting, keep an eye out for companies that might benefit by joining IMDA. Collect business cards and send them to headquarters. Fifty bucks is nice. But the added wisdom, knowledge and camaraderie that a new member brings are even greater payoffs.

It was Walker who worked with sales trainer Gerry Layo to conduct two training courses specially tailored to IMDA member companies.

But the issue that perhaps defined Walker's tenure as president was vendor credentialing. Though it had been looming in the industry for a couple of years before she became president, it started to gain steam just as she assumed office.

In August 2008, she and IMDA legal counsel Mitchell Kramer met with an aide to Congressman Joe Sestak (D-Pa.) to talk about the issue. (Sestak is a member of the House of Representative's Small Business Committee.) In addition, she penned letters to major media outlets (e.g., the New York Times, The Wall Street Journal), industry publications and associations about the matter, and spoke at a number of industry gatherings.

Particularly alarming to Walker and her IMDA constituency was the fact that vendor credentialing could cost suppliers thousands of dollars, a bill some small companies couldn't afford. She feared that such fees could shut specialty sales and marketing organizations out of the market, and dry up a valuable source for innovative medical technologies.

Last year, Walker was instrumental in the formation of the Innovative Healthcare Access Coalition, or IHAC, a group of industry associations seeking to address common issues, beginning with vendor credentialing. Those groups are the Healthcare Manufacturers Management Council, Health Industry Representatives Association, Health Industry Distributors Association, Medical Device Manufacturers Association and Tri-anim. In conjunction with AdvaMed, the Association of periOperative Registered Nurses and the American Association of Critical Care Nurses, IHAC helped draft recommended standards for vendor credentialing for so-called "clinical reps," that is, reps who call on patient care areas. Those recommendations were forwarded earlier this year to the Joint Commission, which had stated its intention to conduct a "field review" and then draw up recommendations regarding vendor credentialing. (Subsequently, the Joint Commission bowed out of the vendor credentialing issue.)

"Our overarching concern is that vendor credentialing can and is being used as a mechanism to keep innovative medical products out of the supply chain," Walker said as the document for Joint Commission was being drawn up. "Our intent was to reach out to organizations that we felt closely reflected the same concerns."

Passion for technology

As immediate past president, Walker will cede to current president Kevin Trout of Grandview Medical the ongoing decision-making associated with the role. But she will no doubt remain vocal on the vendor credentialing issue. At press time, she was scheduled to speak at the annual conference of the Health Industry Representatives Association in Chicago.

And regardless of her role on the IMDA board, Walker is likely to never lose her passion for medical technology and the impact it can have on patient care. "When I was in a sales role and in front of customers, there were times I could say, ‘I saved that patient's life today; that patient wouldn't have made it if I hadn't walked through that door.'

"In a lot of ways, I feel that sales professionals are just as impactful on overall patient care and the quality of the patient experience as doctors and nurses. We give them the tools to be effective."

Walker remains convinced of the value that specialty sales and marketing organizations provide to manufacturers as well. "I believe this is a very pivotal role we play. It is going to become increasingly difficult for manufacturers to get in front of hospitals and clinicians. We need to continue to get the message through to them that they need us as much as we need them. We provide a direct line to the customer. If we're not there, [manufacturers of innovative technologies] will have one option -- selling their technology to a large company that does that have the face time.

"What we do makes a difference."

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Employee separation agreement posted on Website

IMDA legal counsel Mitchell Kramer has posted a sample "Employee Separation Agreement" on the IMDA Website. It is a model to be consulted when a specialty sales and marketing organization is terminating an employee.

The agreement is a way of increasing the likelihood that the parting will be as amicable as possible, that the employee will not badmouth or otherwise hurt the company after he or she leaves, and that the company will get back any equipment, products or other items that the employee may have in his or her possession at the time of the termination, according to Kramer. As a practical matter, the agreement is more likely to be accepted by the departing employee if the employer makes some kind of termination payment. As long as the employee abides by the terms of the agreement, he or she will receive the agreed-upon amount over the agreed-upon time period.

The model agreement does not include a non-compete section. Non-competes should be included in employment agreements, which are best signed before the person starts to work for the company, says Kramer. That said, the model separate agreement calls for the terminated employee to abide by any previously agreed-to non-compete agreement, and provides for the company to withhold the payout should he or she fail to do so.

"There are so many bases for lawsuits, even in at-will states," says Kramer, explaining the rationale for the model agreement. "In most cases, you're better off having a document like this signed and paying the [separated employee] something. It is better, in general, for people to leave a company with good feelings rather than bad feelings." The model agreement can help in that regard.

To view the agreement, go to the "Members Only" portion of the Website (www.imda.org) and click on "IMDA Resource Library."

 

President's Message The ROI of trade association membership By Kevin Trout, IMDA president

Global economic conditions have impacted every industry, including healthcare. Our hospitals are being financially squeezed like never before. As a result, customers are beating us up for lower prices, putting our long-standing business relationships out for bid, or exercising the ultimate insanity -- conducting reverse auctions.

Can we blame them? As uncomfortable as it may make us, the reality is, the economy this year almost seems to have forced hospitals to put a higher priority on saving money over saving lives.

But as prudent business owners, shouldn't we be following their lead in running our own businesses? Right now, you may be working to lower operating costs, improve operational efficiencies and automate manual procedures within your own company. Have you approached this subject as aggressively as your own hospital customers have?

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Here is one way IMDA can make a difference: Take product and professional liability insurance, for example (something we all need). Are you still buying your coverage from your high school buddy, roommate from college, or the same guy who first offered to insure you the day you opened your doors for business? Hey, don't get me wrong; loyalty is a noble thing (especially when it comes with a round of golf). But given the economy, wouldn't it be prudent to at least comparison-shop your policy or put it out for bid this year? IMDA members get a special rate with exceptional coverage through our partnership with Medmarc/Alliant Insurance. (Power buying has its advantages.) IMDA members that have signed up with Alliant have reported anywhere from a 15 percent to 51 percent savings. Call Matt Cohn at Alliant at 602-707-1917 for a comparison quote to see what your savings could be.

That is just one example of trade association ROI. IMDA has many others. Membership dues are approximately $100 per month, but the savings I receive in return are about 4.5 times that amount. (That's a net savings of about $350 per month, or $4,200 per year.) But IMDA is more than just that. The cumulative years of business experience and industry knowledge our members possess are vast, and their passion is obvious. And they are willing to share it all.

I confess I am an advocate of association membership and more important, of industry citizenship. I believe that when choosing a trade association, you need to consider a couple of questions. The first is not what you will get, but what you can give. Can you add value to the association, can you inform, encourage and network through the association, can you influence your industry, and can you help make the association what you believe it should be?

The second question -- not to be underestimated -- is clearly the "What's in it for me?" question. Trade associations are not just clubs; they have to provide members with services of real value. Industry citizenship is important, but it is not the basis for paying the membership dues. Real value comes in two forms: First, in real dollar savings on products and services we all use in our daily business lives; and second, in the intangible ability to help our members be better leaders, better decision makers, and better informed industry experts. While there are a small number of trade associations within our industry, it appears to me that most of them promote their value as providers of product/service discounts, but they don't seem to go into much detail about how they help you and your business grow and prosper. I think this is where IMDA stands out -- the ability to provide both equally well.

Call our executive director, Katie Swartz (1-866-463-2937), for more information on the many opportunities our trade association offers. Consider attending IMDA's Annual Conference and Manufactures' Forum next year.

Join us. Your peers are here . . .

Sincerely,
Kevin Trout
IMDA president, and president and CEO of Grandview Medical Resources Inc., Bridgeville, Pa.

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IMDA Update Published by IMDA 5204 Fairmount Ave., Downers Grove, IL 60515 Phone:  (630) 655-9280 (866) IMDA-YES (866-463-2937) Fax: (630) 493-0798 Website:  www.imda.org E-mail:  imda@imda.org   Staff Katie Swartz: Executive Director Judy Keel: Executive Vice President Patti Perillo:  Senior Administrator Mary Moran:  Chief Financial Officer Mark Thill, Editor & Communications Director (847) 255-0716 Mitchell Kramer, Legal Counsel (800) 451-7466 Barbara Kramer, Legal Counsel (734) 930-5452 George Ayd, Jr., Insurance Administrator (703) 652-1309         2009-2010 Directors President Kevin Trout, Grandview Medical Resources, Inc. (412) 914-0950 President-Elect Anthony Marmo, Martab Medical (201) 512-1100 Secretary/Treasurer Hal Freehling, Jr., O.E. Meyer Company (419) 609-1633 Chairman of the Board Dave Campbell, PhD, Vital/Med Systems Corporation (303) 660-0888 Directors-at-Large Tom Birmingham, Bay State Anesthesia, Inc. (978) 682-6321 George Howe, Mercury Medical (727) 573-0088 Philip M. Reilly, KOL Bio-Medical Instruments, Inc. (703) 378-8600 Don Reiter, Specialty Respiratory Care, Inc. (818) 717-8807 x19 Bill Schultz, IPV Medical, LLC (760) 212-2769 Past-President Shawn Walker, Bay State Anesthesia, Inc. (978) 682-6321 Manufacturer Representative to Board Tim Beevers, Beevers Manufacturing & Supply (503) 472-9055 The ideas presented in this newsletter may or may not be applicable to your particular situation.  Always consult your tax advisor, attorney or CPA before putting them into effect.