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Medical Devices: Hospitals/Clinics

Updated 2 yrs ago | 20 minutes

Overview

Hospitals and clinics are a major distribution channel for the AdvaCare Pharma medical device product range. As both facilities, especially hospitals, require a very wide range of class I and II medical devices to fulfill every medical application, AdvaCare Pharma is well positioned to fill the needs of most hospitals given the more than 500 medical device products we can supply.

Our distributors will approach hospitals/clinics and attempt to convince the key decision makers to accept AdvaCare Pharma products, and therefore need to know how to present AdvaCare and the advantages of our medical device products. However, as medical devices demand less brand loyalty given these products have little differentiation amongst different manufacturers and brands, it can be more difficult for us to leverage competitive advantages as price is a more important factor when compared to pharmaceuticals.

See:

Distribution Channels: Medical Devices > Advantages vs. Disadvantages

It is in our interest that our distributors successfully convince hospitals and clinics that our products can be trusted, so in addition to credibility, we must find other ways to differentiate our products and brands to drive growth for this product range.

Product Range: Which products apply to this channel and why?

The vast majority of our medical device range, roughly 70-80%, is positioned for hospital use. Some products are only for hospital and clinic use, while others apply to other channels as well. For example, an IV Infusion Set will only be used by a hospital, whereas Adult Diapers will be used in both a hospital and sold in pharmacies as well.

Note: Most hospitals will have an in-house (internal) pharmacy that mainly sells pharmaceuticals but might also sell some medical devices, but in this case the medical devices sold by this route would be considered through the pharmacy channel and NOT the hospital channel.

The following medical device divisions and product categories in each division are distributed through the hospital and clinics channel:

MEDICAL DEVICES IN THE HOSPITAL / CLINIC CHANNEL
AccuPoint Injection Instruments	Injection instruments and devices are mostly specifically for the hospital channel. Clinics and doctor offices also consume these products, but just in smaller quantities. Generally low value and low price point per unit, can be difficult to compete based on price. 100% of this product range is used in hospitals and clinics.
Injection & Precision	Class II medical devices that are invasive injecting medications, withdraw blood or perform incisions including syringes, needles, blood collection bags, scalpels, etc. Generally low value, low priced disposable devices purchased in larger quantities as such products are used and discarded frequently.
IV Infusion	Class II medical devices that are invasive, used in the veins for drug delivery and blood sampling including infusion sets, IV cannulas, scalp vein sets, guidewires, etc. Generally low value, low priced disposable devices purchased in larger quantities as such products are used and discarded frequently.
Blood Transfusion	Class II medical devices that are invasive and used for blood collection, storage and filtration, including blood collection bags, blood collection sets, hemodialysis products, etc. Higher value than other AccuPoint sub-categories, but not such high demand.
Enteral Feeding	Class II medical devices that are invasive and used for supplying and storing nutrients for direct delivery into the gastrointestinal tract, including enteral feeding sets and EVA infusion bags. Higher value than other AccuPoint sub-categories, but not such high demand.
AccuQuik Diagnostic Detection	Diagnostic devices are widely used for the hospital and clinic channel, but not exclusively as many of the same products are also sold through the pharmacy and lab channels. Diagnostic products are well suited for future growth, even though our products are low-tech and meant to be fast, convenient and inexpensive, the diagnostics industry will see growth given technology will make telemedicine more and more common, eventually reaching developing markets as well. ~70-80% of this product range is used in hospitals and clinics.
Rapid Test Kits	Rapid test kits are class I and II medical devices that are simple yet effective and inexpensive for testing for infectious diseases, drugs and other medical conditions by blood, urine, saliva or other sampling methods. As these tests have a margin for error, they are often used for screening purposes opposed to an absolute diagnosis for which other more comprehensive testing will be used. Supposed to be used in a hospital, clinic or lab, but given ease of use may also be used at home depending on regulations of country. Rapid test kits are generally low value, but margins are generally good and branding is effective as test kits have strong brand recognition.
Portable Devices	Portable devices are class II medical devices that are small, portable electronic devices that test for blood sugar, blood pressure pressure, pulse or other basic diagnostics. Often the devices are reusable, but will use a specimen strip for some products that have to be reordered. Not suitable for hospital use given these portable devices are made to be convenient and easy to use, but perhaps less accurate, therefore better suited for home use.
Diagnostic Supplies	Diagnostic supplies are mostly class II medical devices that are disposable and used for specimen collection and testing, including blood collection tubes, urine & stool specimen cups, vaginal speculums, etc. Vaginal speculums and gynecological exam kits can be used for exam procedures, while blood collection tubes, microscope slides and urine & stool specimen cups, etc. are for use in the lab in hospitals. But such use in a lab would be through the lab channel, even if the lab is in the hospital.
StaySafe Medical Disposables	Medical disposables include PPE, anesthesia equipment and other products that are commonly used in hospitals, mostly for patient care and surgical procedures. Medical disposables are used in high volume and disposed of readily. These products are used almost exclusively in hospitals and clinics. 100% of this product range is used in hospitals and clinics.
Protective Equipment (PPE)	Some PPE products can be class I medical devices, but other products are not classified as medical devices but rather as personal protection. Exam gloves, surgical gowns, drapes, caps, face masks and other body protection equipment are used in hospitals and clinics by doctors and nurses on a daily basis and often multiple times a day for every procedure whether big or small.
Anesthesia Equipment	Anesthesia and respiratory equipment are both class I and II medical devices including different types of respiratory masks and tubing. Equipment consisting of mostly PVC, PE and other plastic disposable devices for patient care in hospitals.
Biohazard & Waste	Class I medical devices for disposal of waste includes biohazard bags, vomit bags and waste containers. Used extensively in hospitals as almost all disposable equipment has to be disposed of carefully.
Condoms	Condoms are a class I medical device including both male and female condoms, as well as lubricant which is a personal care or sexual wellness product. Large brands dominate this product sector, making it difficult to enter new markets. Brand awareness is very important as most new brands do not succeed.
StayGuard Skin & Wound Care	Our largest medical device division includes a very wide range of products spanning wound care, disinfectants, first aid and orthopedics. Products include disposable, reusable and also invasive medical devices. ~70% of this product range is used in hospitals and clinics.
Wound Dressings	Class I medical devices that are non-evasive and used for minor to moderate wound treatment, including various kinds of bandages, dressings and swabs. Dressings can be used to apply medications or to protect the area where applied by forming a barrier between the wound and environment. Generally low value, dressings will be frequently disposed of after use while bandages are used in less frequency given that application can be used for days before being changed for a new bandage. Readily used in hospitals for emergency care and post-operative procedures.
Wound Closure	Class II medical devices that are invasive and used to close wounds, including surgical sutures, skin staplers and wound drainage systems. Surgical sutures are the most promising product in this sub-category with more demand than the others. This range is used only in hospitals, except for butterfly closure bandages which can also be applied at home for small wounds.
Medical Tapes	Adhesive tapes are class I medical devices that adhere to the skin, usually holding in place another device. Transdermal patches including anti-smoking, male enhancement and mosquito repellent patches, are not classified as medical devices but rather supplement or cosmetic depending on the country. Medical tapes are widely used in hospitals and clinics for patient care, but patches are personal care products.
Disinfectants	Disinfectants are generally not considered medical devices, but rather biocidal products. But these products are widely used in hospitals. Disinfectants include antiseptic, antibacterial and/or wipes, pads and sprays.
First Aid	First Aid Kits are not medical devices, but many of the contents included in the kit are medical devices. First Aid Kits can vary in size, more simple kits including >20 items, and other more complete kits can include over 150 items. Transdermal patches are also included in the first aid sub-category including various hot and cold patches and pain relief patches.
Orthopedics	Class I medical devices include orthopedic braces, supports, elastic bandages, splints, etc. Most supports, braces and orthoses are reusable, and worn by patients for a longer term. Most braces, orthoses and splints are for more serious injuries and therefore more readily used in hospitals, whereas supports are usually for less serious injuries and more likely to be sold in pharmacies. Elastic bandages are the only products in this range that are lower value and disposable.
StayDry Incontinence & Urology	Our smallest range of medical devices includes class I, II and personal care products. Most incontinence and urology products are disposable and high volume. ~60-70% of this product range is used in hospitals and clinics.
Incontinence	Incontinence products include class I medical devices and personal care products such as diapers, sanitary pads, under pads, disposable bedsheets and exam table paper. Personal care products such as diapers, sanitary pads, maternity pads can be used in hospitals, but are better positioned for pharmacies and retail channels. Hospitals use high volumes of under pads, disposable bedsheets.
Urology	Urology products are class II medical devices including colostomy bags, urinary bags, catheters for urology, etc. This range is well positioned for hospital use, but also for at home patient care.

Target Audience

B2B: Primary Target Audience

As hospitals and clinics cannot purchase large volumes of medical devices to meet our MOQ per product, they will purchase through domestic distributors.

See:

Distribution Channels: An Overview > Hospitals & Clinics > Why don’t hospitals/clinics buy directly from AdvaCare?

These distributors are our customers, the direct purchasers of our wide range of medical device products, and therefore our primary target audience.

See:

Distribution Channels: An Overview > Distributors

B2B: Secondary Target Audience

The hospitals and clinics that our distributors sell our medical devices to are the secondary target audience - the next stage in the supply chain. The procurement department and/or procurement officers of the hospital are the decision makers that decide the vendors and orders based on product prices, availability, quality and relationship with the distributor. If the clinic is small, the decision maker could be the owner.

Once our product is used by a hospital, and if the product was well accepted by doctors, nurses and patients, often the hospital will ask our distributor to reorder the same AdvaCare medical device brands.

For more context to better understand our product positioning in the hospital/clinic channel, reference:

Distribution Channels: Medical Devices

Medical devices are price sensitive as most hospitals are budget oriented and not willing to pay a premium for disposable, low value products such as class I and II medical devices. Given that it is difficult to create product or brand differentiation with most medical device products, as most are generic products that serve the same function with limited differences of specifications, it can be difficult to compete. While we do have a considerable percentage of our sales from this wide product range, generally the products are not high value or margin, but can serve as customer acquisition products to get business started with a new distributor. The goal of this is to further develop a new distributor to expand their product range and quantities, either with other medical devices in our range or expand into pharmaceuticals, using medical devices as a “hook” to get the business started.

It is important to know the different types of hospitals to understand this target audience and how medical devices fit into this channel.

See:

Distribution Channels: An Overview > Hospitals & Clinics > Types of Hospitals

B2C

Hospital and clinic patients are the end users of our medical device products. In hospitals, the patient rarely has a choice of the brand they use, as this would usually be decided by the doctor, nurse or hospital administration.

Supply Chain

Hospitals and clinics are the second to last stage in the supply chain before the product is used by a patient or consumer:

API Manufacturer > Finished Manufacturer > AdvaCare > Distributor/Importer > [Sub-Distributor] > Hospital/Clinic > End Consumer (patient/consumer)

See:

Distribution Channels: Introduction > Understanding Supply Chains

Promotional Materials: Which materials apply to this channel and why?

Hospitals and clinics do not advertise specific brands or products as they are not in the business of selling specific brands, but rather ensuring quality healthcare. Therefore, the kind of promotional materials we produce for our distributors to provide to hospitals should be based on materials that a hospital can use and are targeting the decision makers of the hospital or clinic.

The B2B, B2C, Distributor Sales Dept. channels reflect not for whom the specific promotional item is targeting, but instead to which channel it is provided to. Symbol “(TA)” and Context explains for whom each item is targeting:

✔ = Promotional item provided to this channel.

Who will receive this promotional item?

✘ = Promotional item not provided to this channel.

Who will not receive this promotional item?

❔ = Promotional item might/could be provided to this channel.

Who might or might not receive this promotional item?

(TA) = Intended Target Audience for this channel.

Who is targeted to see this promotional item?

PROMOTIONAL MATERIALS FOR HOSPITAL/CLINIC CHANNEL
Printed Materials
Promotional Item	B2B	B2C	Distributor Sales Dept.	Description
Poster and Signage	✔	✘ (TA)	✘	B2B: Signage, such as wall posters, should serve to primarily educate patients on health conditions, use of products, or other helpful tips that would make a hospital want to display such a poster. Secondary purpose is for brand awareness of AdvaCare and possibly our distributor, but must make a hospital want to display such signage. This secondary purpose is usually combined with the primary purpose in the same poster/signage. B2C: Does not apply to hospitals or clinics, only for retail purposes to promote product or brand.
Window Signage	❔	✘ (TA)	✘	B2B: Window signage is less common for hospitals and clinics, but could be possible if requested by our distributor. Purpose is same as Posters and Signage . B2C: Does not apply to hospitals or clinics, only for retail purposes to promote product or brand.
Flyer / Pamphlet	✔ (TA)	❔ (TA)	✘	B2B: Flyers, pamphlets and brochures for our distributors to give to hospital decision makers (procurement dept, doctors, etc.) to promote AdvaCare and our products. Purpose is to prove credibility and convince secondary target audience to buy AdvaCare products. B2C: Flyers, pamphlets and brochures serve to educate patients on the product or health condition, but challenge is budget usually limits the quantity that we can print. For example, if there is a quantity of 10,000 boxes of a tablet product, budget might only allow 2,000 flyers.
Shelf Wobbler	✘	✘	✘	B2B/B2C: Does not apply to hospitals or clinics, only for retail purposes on a shelf.
Aisle Signage	✘	✘	✘	B2B/B2C: Does not apply to hospitals or clinics, only for retail purposes on a shelf.
Standing Banners	✔	✘ (TA)	❔	B2B: Signage, such as large standing posters, should serve to primarily educate patients on health conditions (more likely), use of products (less likely), or other helpful tips that would make a hospital want to display a large standing poster. Secondary purpose is for brand awareness of AdvaCare and possibly our distributor. B2C: Does not apply to hospitals or clinics, only for retail purposes to promote product or brand. Distributor: Can use for seminars, trade shows or other events.
Notepad / Notebook	✔ (TA)	✘	❔	B2B: Notepads are cheaper, usually given to hospitals and clinics for use by hospital staff, nurses, doctors, etc. Notebooks are more expensive, usually given to hospitals and clinics for doctors, management, etc. Both are effective for brand awareness given it is useful and branding is on every page. Distributor: Can use but in small quantities.
Sticky Note	✔ (TA)	✘	❔	B2B: Inexpensive and widely used by hospital staff, nurses, doctors, administration, etc. Effective for brand awareness given it is useful and branding on every page. Distributor: Can use but in small quantities.
Calendar	✔ (TA)	✘	✘	B2B: AdvaCare branded calendars are usually printed annually around July of every year and sent out in advance for the following year. Very strong brand awareness as it is used for a full year, it puts our products and brands in the user’s face for a long period of time.
Catalog	✔ (TA)	✘	✘	B2B: Distributor gives to hospital procurement officers, doctors and key decision makers to showcase our products for that market and build credibility. Catalogs are usually custom designed and printed for a specific country and/or distributor.
Delivery Vehicle Decal	✘ (TA)	✘ (TA)	✔	Distributor: As most of our distributors have their own delivery trucks, large decals applied to their delivery vehicles are inexpensive and very effective to promote the AdvaCare name in local markets, but requires that the decal be well designed and fit the specific vehicle.
Physical Items
Product Display	✘	✘	✘	B2B: Does not apply to hospitals or clinics, only for retail purposes to promote product or brand.
Pen / Highlighter	✔ (TA)	✘	✔	B2B: Inexpensive and good for widespread brand awareness, but limited in messaging given only AdvaCare+Distributor logos or only AdvaCare logo can fit onto a pen. B2C: Does not apply to hospital or clinic patients, lack of branding purpose. Distributor: Salespeople can use when in the field.
Desk Clock	✔ (TA)	✘	✘	B2B: Effective for reinforcing general brand awareness as a desk clock sits on someone’s desk for long period of time, but given small size, messaging limited to AdvaCare+Distributor logos or only AdvaCare logo.
Wall Clock	✔ (TA)	✘	✘	B2B: Useful promotional item, as hospitals have many areas to place a clock, with long life cycle, but messaging is limited to AdvaCare+Distributor logos or only AdvaCare logo.
Mouse Pad	✔ (TA)	✘	✘	B2B: Inexpensive and effective for brand awareness with many options for messaging. Useful in hospitals and there are likely many computers.
Plastic Folder / Envelope	✔ (TA)	✘	✔	B2B: Inexpensive and useful for any documents that need to be stored or transported in a hospital. Distributor: Can use but in small quantities.
Mug	✔ (TA)	✘	✘	B2B: Useful for long term use, given to hospitals for doctors, nurses and staff to use.
Water Bottle	✔ (TA)	✘	✔	B2B: Less common for hospital use, water bottles are most common to give to farmers for our veterinary range. However, these could be a useful item for hospital nurses, doctors and staff. More premium steel if for doctors or administration staff, less premium plastic if for general staff. Distributor: Salespeople can use when in the field, small quantity.
Desk Organizer	✔ (TA)	✘	✘	B2B: Less requested but generally good for reinforcing general brand awareness as this sits on someone’s desk for long period of time, but given small size messaging limited to AdvaCare+Distributor logos or only AdvaCare logo.
Shirt	✔ (TA)	✘	✔ (TA)	B2B: Inexpensive polo style shirts are ideal for less formal and lower level staff, more expensive button-down shirts ideal are doctors, hospital administration, etc. Distributor: Button-down shirts ideal for distributor’s salespeople while in the field, strong brand association and awareness.
Laboratory Coat	✔ (TA)	✘	✘	B2B: Our distributors request lab coats for use by doctors and other hospital staff. These are relatively inexpensive and bring a level of credibility as lab coats are always connected with healthcare, so it is especially credible if doctors are wearing lab coats with the AdvaCare logo.
Cap	❔ (TA)	✘	✘	B2B: Not used in the hospital or clinic settings, but possibly provided by distributors to hospital procurement, doctors, etc. as a gift.
Waist Bag	❔ (TA)	✘	✘	B2B: Generally not used in hospital or clinic settings, but it is possible to be used or could be provided by distributors to hospital admin, procurement or other staff as a gift.
Padfolio	✔ (TA)	✘	✔ (TA)	B2B: A preferred promotional item by many distributors, often given as a gift to doctors, hospital admin and procurement staff. Distributor: Ideal for distributor’s salespeople when in the field for brand awareness.
Backpack / Laptop Case	✔ (TA)	✘	✔ (TA)	B2B: Expensive and usually given to distributors with larger promo budgets in lower quantities as gifts for doctors and hospital admin. Distributor: Ideal for distributor’s salespeople while in the field for strong brand awareness.
Fabric Bag	❔ (TA)	✘ (TA)	❔	B2B: More expensive than plastic bags, but can produce in smaller quantities. Distributors use for a variety of purposes, and considering these are often kept and reused by those who receive them, these do create some brand awareness. However, note that hospitals do not sell products, so not used at a point of sale. B2C: Not ideal for B2C use as hospitals and clinics do not have a point of sale. Distributor: Might be used by distributor to give samples or other materials, must find out intended use.
Plastic / Paper Bag	✘	✘	✘	B2B/B2C: Does not apply to hospitals or clinics, only for retail purposes.
USB Stick	❔ (TA)	✘	✘	B2B: Expensive but can be given as a gift for doctors and hospital management in smaller quantities. Limited brand awareness, should only give if large budget or specially requested and good reasoning to provide.
Pill Organizer	❔ (TA)	❔ (TA)	✘	B2B: More suitable for pharmacies and B2C use, but could be given as a gift to doctors and hospital staff. Perhaps some limited use for patients, but less likely and only if inexpensive and larger quantity.
Mask Holder	✔ (TA)	❔ (TA)	✘	B2B: Inexpensive and can provide larger quantities for hospital staff use such as nurses, doctors and any staff that are required to wear a mask in the hospital setting. B2C: Possible to be given to patients given inexpensive and large quantities are possible if budget allows.
Umbrella	✔ (TA)	✘	✘	B2B: Expensive with some brand awareness, ideal for gifts to doctors and hospital staff.
Raincoat	❔ (TA)	❔ (TA)	✘	B2B: Usually umbrella more suitable for hospital staff, but possible if more expensive raincoats. B2C: Inexpensive raincoats could be possible for hospital/clinic to provide to patients. For general brand awareness.
Phone RIng	✔ (TA)	✘	✘	B2B: Inexpensive with limited brand awareness, possible gifts to doctors and hospital staff but not many requests.
Digital Activations
Online Banner	✘	✘	✘	B2B: Limited application as not much added value to run ads for any specific hospitals.
Digital Catalog	✔ (TA)	✘	✔	B2B: Possible application for distributor’s salespeople to show or send a digital catalog to hospital procurement officers or doctors.
Digital Flyer / Signage	✔ (TA)	✘ (TA)	✔	B2B: Applies only if distributor will print our design in their country, usually results if we cannot send physical promotional materials or budget is not sufficient.
Power Point Presentation	✔ (TA)	✘	✔	B2B: Case specific, usually requires significant time to prepare. Depends on distributor priority.
Website Development	✘ (TA)	✘ (TA)	✔	B2B: For priority distributors, with approval we can design and host a website. We use a template for this, showcasing our products and controlling the hosting, domain and access to the website.
Extended Search Ads	❔ (TA)	✘ (TA)	❔	B2B/B2C: We can run Google Ads and other PPC campaigns targeting specific demographics in our distributor’s country. Such campaigns are for priority distributors and must serve a strategic purpose.

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