Patient-Centered Partnerships: What It Really Means to Be an Industry Partner

Every manufacturer wants to call themselves an industry partner. But what does that actually mean? And more importantly, where do you honestly fall on the spectrum today?

In this episode, Dan Toomey walks through the levels of supplier relationships in healthcare and what it takes to climb from transactional vendor to trusted strategic partner.

The Four Levels of Supplier Relationships

Not all vendor relationships are created equal. Health systems and industry associations have defined clear categories, and Dan challenges suppliers to be honest about where they stand.

Level 1: Transactional. You show up when needed. You drop off samples, take orders, and move on. The relationship is reactive and volume-driven. Catalog companies and inside sales operations often fall here.

Level 2: Strategic Supplier. You are offering more than products: customized education, QR codes for quick reference, deeper engagement with materials management. As Dan describes it, "You're starting to bring everybody in. You're bringing your VP level from your organization in with their leadership. You're starting to think about how you implant and work together."

Level 3: Industry Partner. This is where real collaboration begins. The Association of Healthcare Value Analysis Professionals (AHVAP) has actually defined this level: an industry partner is an entity that engages in broader collaborative relationships encompassing research, training, technology integration, and patient care.

At this level, you are fully engaged with the health system's needs. You are listening to what they need for patient outcomes, not just cost savings. You are integrated with value analysis, materials management, and supply chain.

Level 4: Executive Collaboration. This is the highest level. Your C-suite is engaged with their C-suite. You are sharing sensitive information: margins, manufacturing footprint, supply chain contingencies, guarantees around inventory and consignment. As Dan puts it, "To get uncomfortable is to help unwind things to get really comfortable and build that trust."

How Health Systems View These Relationships

Every health system is different. They have existing vendor relationships, incumbent suppliers, and specific priorities. But common threads run through all of them.

They want partners who are patient-centered. If your focus is on hitting your sales number rather than improving patient outcomes, they will sense it. They value engagement: when a product goes on back order, are you scrambling to find alternatives? Are you proactively communicating challenges, or are you just saying "sorry, we can't get this to you"?

Dan stresses the proactive approach: "You're going above and beyond to get product to them to make sure that the surgeries or the procedures can keep happening. Those are things that make you more than just a transactional partner."

They also reward transparency. Especially now, with tariff pressures and supply chain disruptions, health systems want to understand your cost drivers and constraints. That means being willing to share information about manufacturing footprint, potential bottlenecks, and disaster recovery plans. Post-COVID, those conversations matter more than ever.

The Three Departments That Matter

If you want to build a true partnership, Dan says you need engagement with three key groups at the health system level:

Supply chain manages inventory, distribution, and logistics. They care about reliability, lead times, and cost efficiency.

Contracting negotiates terms, pricing, and rebates. They care about compliance, savings, and value. This is where your national accounts team should be having business-level conversations.

Value analysis evaluates clinical fit, safety, and outcomes. They care about whether your product actually improves care. This is where clinical evidence and user feedback matter most.

"Those three have really become where all the magic happens at the health system level," Dan says. "When you have total engagement with supply chain, contracting, and value analysis, that allows you to really outreach to the clinicians and also outreach upward to the C-suite."

When you have buy-in from all three, you have a foundation for partnership. They will advocate for you internally, help you navigate the organization, and support you at renewal time.

Moving Up the Ladder

Moving from transactional to strategic to industry partner takes time and intentional effort. Dan outlines several principles:

Start by understanding their priorities. What are their savings goals? What clinical outcomes are they tracking? What supply chain challenges are they facing?

Bring your whole team. Do not just send the sales rep. Bring your supply chain team to meet their supply chain team. Bring your clinical specialists to meet their clinical staff. Show that you are invested at every level.

Be transparent about capabilities and constraints. If you cannot guarantee 30-day delivery, say so. If you are facing cost increases, explain why. Transparency builds trust.

Demonstrate patient-centered thinking. Every decision should tie back to patient outcomes. If your product improves safety, reduces readmissions, or shortens procedures, make that connection explicit.

And when the time is right, engage the C-suite. But that only works once you have built trust at the operational level. As Dan describes the progression, "You're working with the contracting team. You're working with the VP of contracting. You're getting in heavy with supply chain. You've potentially brought in your own supply chain team. You're building a foundation over steps with these facilities, because you're not just doing it yourself: you're bringing everybody in with you from your organization."