Health care reform could speed consolidation. (health care industry) (Industry Overview)

Health care industry manufacturers are preparing for radical changes in the way they do business. Their buzzwords are becoming "cheaper" and "value-added."

Vendors are anticipating having to sell to an entirely new type of customer, brought about by greater hospital regionalization and more hospital collaboration and shared services.

Moreover, suppliers expect to change the ways they use and compensate sales reps and are steeling themselves for major cutbacks in their sales forces. Straight commissions and reduced commission structures for reps are likely to become the rule of the day. Closer partnerships with distributors are probably in the cards, as well.

Medical device manufacturers and distributors have adopted a wait-and-see but try-not-to-worry position regarding health care reform that could shrink sales forces and forge partnerships between distributors and manufacturers.

Speculation about the pending reforms dominated discussions at the third annual Health Care Executive Forum held recently in Scottsdale, Ariz., sponsored by National Contracts, Inc., Irvine, Calif. Industry anxiety was underscored by the attendance--183 health care executives participated, up 25% over last year. Most wanted to schedule another forum in nine months to continue making the crucial connections needed to …