PartsSource Inc. wants to simplify the medical equipment parts and service marketplace.
The Aurora-based company got its start in 2001, but it's seen a lot of recent growth. In the past four years, the company has gone from having 100 hospitals on its enterprise model to more than 1,200, said president and CEO Philip Settimi. In total, it serves more than 3,500 hospitals and 15,000 clinical sites in the U.S., as well as some outside the country, with its marketplace of more than 6,000 suppliers.
"And it's growing rapidly every single day," Settimi said.
Settimi joined PartsSource as CEO in 2014. He's a physician by training who had been working in medical technology and health care IT. Health care systems had turned to software for patient management, creating efficiencies and helping doctors better assess data, he said. He thought that kind of digital transformation could be beneficial throughout the systems.
PartsSource focuses on providing that in the medical equipment parts space. When it began two decades ago, it focused on creating a marketplace that has become more digital over time. In the years since Settimi joined, PartsSource has been growing and adding more services for its customers.
And Settimi sees a lot of growth opportunities with the recently announced acquisition of PartsSource by Bain Capital Private Equity in Boston. The company is not disclosing the terms of the deal with its current owner, Boston-based Great Hill Partners, but the Wall Street Journal has reported that the deal values PartsSource at $1.25 billion. The acquisition is expected to close in the third quarter of 2021.
PartsSource takes on the complex medical supply chain for its customers, bringing thousands of vendors and service providers into one space. It has about 250 employees, the majority of whom work in Northeast Ohio. Settimi declined to share the company's annual revenue.
PartsSource is a controlled marketplace, rather than an open one. The company draws on data to find the most reliable and cost-effective suppliers for its customers, Settimi said. It also has rapid-response teams on call for customers who are having trouble finding just the right part or product.
The end result of having a more automated approach is more "clinical availability," Settimi said, as medical providers are less likely to have to turn patients away because a piece of equipment is being replaced or repaired.
But the medical industry is still relatively "analog" when it comes to the equipment supply chain, Settimi said. It can be difficult to find the best source for a product, especially on short notice.
So PartsSource created the procurement software medical systems need to automate that process alongside its marketplace of products and services.
"We've really created this turnkey purchasing platform for teams in mission-critical roles in health care," Settimi said.
One of the company's customers is Cleveland-based MetroHealth.
In 2018, MetroHealth began using PartsSource Pro, the company's enterprise software system. MetroHealth had been using PartsSource as an option prior to that and found it to be a reliable vendor, said Robert Tackett, the system's director of clinical engineering. But the more comprehensive approach helped the system improve its approach to service, repairs and maintenance of equipment, in addition to sourcing parts faster. Managing hundreds of vendors — and the related "logistics and financial paperwork" — takes time, he said.
"That's quite a bit of overhead," Tackett said.
MetroHealth's technicians still have the option of sourcing parts on their own, but handing a lot of that work over to PartsSource frees them up to stay in the field and work on actual repairs. Using PartsSource as more of a one-stop shopping service has made the system's processes more efficient, reduced red tape and helped it lower its cost-of-service ratio, "because we're able to do more with the staff we have and get the work done," Tackett said. And now, the hospital system has been working with PartsSource on a program related to imaging that Tackett said MetroHealth hopes to launch next year.
Settimi sees opportunities for merger-and-acquisition-based growth for PartsSource, as well as organic growth in areas of health care like laboratory services and life sciences.
"We think the model applies to a really large swath of long-tail spend in health care at large," he said.
Already, PartsSource launched what Settimi called a "labor marketplace" for clinical engineering last fall, connecting its customers with service professionals as needed. It added a marketplace for facilities management last month.
And the acquisition by Bain Capital will further support this kind of growth. The private equity firm understands both health care and technology and already owns companies in that space, Settimi said. It has a history of building those kind of businesses. And it's a large fund with a "rigorous approach" to managing companies, he said.
"We're excited about lots of new product categories, lots of new marketplace domains we can enter," Settimi said. "We think health care has a critical need for marketplace leadership, specifically focused on those mission-critical operations teams that don't have the luxury of waiting days or weeks for their large distributors to show up or the ability to source things in rapid fashion."
"device" - Google News
August 01, 2021 at 03:00PM
https://ift.tt/3fjVY3b
PartsSource sees opportunities for growth in medical device parts, service market - Crain's Cleveland Business
"device" - Google News
https://ift.tt/2KSbrrl
https://ift.tt/2YsSbsy
Bagikan Berita Ini
0 Response to "PartsSource sees opportunities for growth in medical device parts, service market - Crain's Cleveland Business"
Post a Comment