The HIDA Distributor Financial Performance Survey 2017
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
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
Reports in This Series
Survey respondents receive:
An Individual Report with key ratios based individual firm data generated automatically upon completion of the survey.
A Summary Report with metrics in important operating areas such as revenue growth, credit utilization, inventory, service levels, and liquidity.
A Confidential Profit Report with industry, market, and size‐level performance information as well as the blinded performance of high‐performing firms, the top third of distributors in terms of return on assets.
A First Quarter of 2017 update of key performance and operating metrics for the first quarter of 2017 compared to 2016 operating and performance results.
An Individual Profit Improvement Profile that compares individual company performance to the values for “typical” market and size distributors and high‐performance groups.
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‐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 68% 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 80% 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 94% of their revenue from the longterm care market.
There are 18 company responses to the 2017 survey, which analyzes operating results for fiscal year end 2016. Participating firms account for 46% of the $45.1 billion in total distributed health care supplies revenue reported by GHX for 2016. In terms of markets, 35% of respondents are focused on alternate site markets, 35% are principally hospital distributors, 30% are focused on the long‐term care market.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook