2016 Dstributor Financial Performance Survey
About the HIDA Distributor Financial Performance Survey
The HIDA Distributor Financial Performance Survey provides annual analyses of the operating characteristics of firms in the health products distribution industry. The information in this report has four important uses for distribution industry management.
allows managers to compare individual company performance against industry benchmarks
enables managers to identify specific performance aspects that can benefit from focused management attention
provides outsiders (such as board members, bankers, CPAs, and new members of management) needed insight into the industry
contributes toward the identification and explanation of trends and major changes occurring in the industry
How to Use this Summary Report
The main purpose of the HIDA Distributor Financial Performance Survey is to give distributors the opportunity to benchmark their companies against industry standards and identify opportunities to increase their performance. Appendix A provides key operating ratios for each market over the past three years. Appendix B provides definitions for calculating these ratios.
Primary Market Categories
The survey data are analyzed largely on the basis of market mix‐driven categories of firms. The categories are relatively homogeneous and are designed to reflect actual industry customer mix strategies to the extent that the data will permit.
The market mix categories in this report are as follows: Primarily alternate site firms: These are firms focusing primarily (50% or more of sales) on sales to physician offices and related alternate site providers (e.g., clinics and laboratories). As such, the needs of the physician practice market drive their characteristics and business practices. On average, this group of firms generated 66% of their revenue from the alternate site market.
Primarily hospital firms: These are firms which have hospitals as their principal market (50% or more of revenue), and the hospital is the primary factor in determining the operating characteristics. On average, this group of firms generated 86% of their revenues from the hospital market.
Primarily long‐term care firms: These are firms having long‐term care providers and patients as their primary market (50% or more of revenue). On average, this group of firms generated 92% of their revenue from the longterm care market.
There are 16 company responses to the 2016 survey, which analyzes operating results for fiscal year end 2015. Participating firms account for 46% of the $42.3 billion in total distributed health care supplies revenue reported by GHX for 2015. In terms of markets, 31% of respondents are focused on alternate site markets, 31% are principally hospital distributors, 38% are focused on the long‐term care market.
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