“Episode 9: Demystifying the GPO with Mike Motto”
by Stacey Richter

Listen to the MP3 file directly by clicking here.

Michael J. Motto – Principal, MJM & Associates, LLC

mike_motto As a senior life science commercial leader for over 30 years, Mike’s career has been focused on building high performing teams and strategy driven by attention to stakeholder needs, strong market insights and alignment with corporate objectives.

Prior to engaging in a managed markets consulting practice, Mike lead the Trade Relations function and held an Executive Committee position at Managed Health Care Associates, the largest alternate-site, post-acute group purchasing organization in the US.  Prior to joining MHA, he served as Managing Director at Maxcess Managed Markets, a Publicis Healthcare Communications Company and founded the managed markets practice at RCW Group, a McCann Healthcare Worldwide agency.  Mike built and led an integrated commercial group responsible for US product access and reimbursement as Vice President of the Managed Markets Group at Eisai Inc.  His responsibilities included commercial and government payer negotiations, pricing strategy development, retail, wholesale and specialty pharmacy relations; customer service and customer segment/portfolio strategy development.  

Prior to joining Eisai, Mike spent 13 years with Novartis in roles of increasing responsibility which included head of US Managed Markets Customer Development, Regional Director of Account Management, National Account Manager and District Manager.  Mike also held various sales, sales management and marketing positions at Marion Merrell Dow.  A graduate of the Illinois State University, Mike holds a Bachelor of Science degree in Biology.


 

00:30 Mike’s work at a GPO.

00:45 There are two sides to the GPO business: the member side (pharmacies, hospitals), and the trade relations side.

1:00 Mike’s team was focused on the business partner development side of his work at the GPO, including work with a growing group called Specialty Pharmacy Solutions.

1:40 What is a GPO, and what does it do? A Group Purchasing Organization is an entity created to leverage the purchasing power of a group of individuals or businesses to obtain discounts from business partners that are based on the collective buying power of the GPO members.

2:45 Who would want to be in a GPO together? This can be split into two sides: the Acute side, which includes hospitals or integrated delivery networks, and the Post-Acute side, or the “Alternate Side Space,” which includes long-term care centers, specialty pharmacy, home infusion, home equipment, etc.

4:15 Most of the attention has been on the Post-Acute side with Accountable Care Organizations because the delivery of care can be most effective in these spaces.

4:50 How does purchasing in a GPO work? For pharmacies, it can mean being a one-stop shopping place.

7:15 How the Business Partner side of a GPO works.

8:45 How GPOs can help manufacturers get their products to reach a wider customer base.

10:40 An example of this in the pharmaceutical industry.

11:30 As an example, a GPO could help a company build a better marketing message as part of their partnership.

13:30 Two more advantages to working with a GPO include pushing a product to a wide potential consumer base, and possible extra sales support.

14:30 Why the value proposition of GPOs is being questioned.

15:35 Examples of some of the innovations offered by GPOs include reimbursement networks.

16:20 A few GPOs have even begun creating ACO networks.

17:00 For years, ACOs have been offering cost-effective healthcare, but didn’t have a good understanding of what a long-term care pharmacy provider, or specialty pharmacy provider, or a home-infusion provider does.

17:40 Automated Ordering Tools and the efficiency of ordering.

18:20 The importance of data analysis and collection.

19:00 Data analysis is invaluable when looking at things like re-hospitalization and the linkage between post-acute and acute in coordination.

20:00 The seven things a GPO can help membership with include: messaging, new distribution channel, the listserv, brand exposure, automated ordering, clinical support, data collection management and analysis, and lobbying in Washington.

20:50 A GPO can really be a market facilitator.

21:20 GPOs, typically, don’t prefer products, don’t create formularies, don’t create preferred situations of one product over another.

22:30 Many manufacturers never take advantage of a full engagement of what a GPO has to offer.

26:00 “Data becomes information, and information can become very instructive to creating strategy and really identifying patient type.”

27:00 There is a lot of very interesting emerging technology that could impact patient outcomes.

28:30 There is a strong movement for long-term care at home.

29:20 In the post-acute world, ACO networks are forming to be a voice for all post-acute providers, and making sure that that voice is heard.

30:30 How a hospital can prevent high percentages of patient readmission when they are fully coordinated in all aspects of data collection after patient discharge.

33:00 GPOs, through some avenues, can really be the voice of the post-acute world.

35:50 Potential gaps in GPOs that could benefit forward-thinking entrepreneurs: faster innovation may be one area.

38:35 How an organization can become a business partner in a GPO.

40:30 What Mike is up to now.

 

You can find Michael’s LinkedIn here