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According to key findings in recent Miller Heiman research, there are seven steps healthcare sales professionals can take to improve their effectiveness. The study found that selling healthcare products ' medical supplies and devices, pharmaceuticals and capital equipment - is virtually a different job than it was 20 years ago.

For most U.S. hospitals, the cuts in Medicare reimbursements that began in 1997, threatened economic stability and led to big changes in operations, purchasing in particular. Managed care organized doctors, hospitals and other providers into large groups, (HMOs, PPOs POS, etc. ) in order to enhance the quality and effectiveness of healthcare. In this newly created organization, the buyer changed from clinician to executive.

Align the Selling Process with the Buying Process

While the importance of knowing your products hasn't changed over time, what is new, according to Miller Heiman, is how organizations buy products. Different products are purchased through different processes, and have different budgets. Medical supplies such as bandages, tongue depressors and syringes are usually funded by operating budgets and in general are a less complex sale.

'When understanding when and how operating budgets are developed, a sales professional will get a better understanding of whom to talk with and when to talk with them,' said Tim Call, Miller Heiman vice president.

One of the most visible budget areas is pharmaceuticals. New and better drugs are being approved every day, and the advent of more complicated drugs creates a very difficult situation for today's pharmacy director.

'Today's healthcare system focuses on the pharmacoeconomics of drugs ' a return on the investment process that changes the dynamic of the pharmaceutical sale, said Miller Heiman consultant Tom Williams. 'That's why it's crucial to know what the organization is empowered to purchase ' and to make sure your drug gets on the formulary.'

A Prescription for Effective Healthcare Sales

Based on Miller Heiman's research and insights from its healthcare experts, there are seven key steps sales reps can take to improve their effectiveness.

I. Understand how to read financial statements and know what kind of return on investment the organization expects ' Salespeople need to research the institutions that are in their territory and know how the funding mechanism works and how the dollars flow.

II. Learn another language besides Clinicalese - Healthcare sales executives need to learn to speak in economic and business terms.

III. Know your customers and how the organization makes decisions - It is essential that sales people understand that this new approach is very different from the old method of pushing products to clinical buyers.

IV. Identify an internal coach ' Understanding the complexities of the client's budget, and identifying the decision makers and their concerns are new priorities. Therefore, identifying an internal contact that can provide information assists the sales team in developing strategy.

V. Complete a win/loss analysis on all deals ' The sales team needs to conduct an interview with the client to determine why they bought or didn't buy and to incorporate this information in the next sales visit.

VI. Develop a strategy to retain and grow current customers ' The sales person needs to follow-up and communicate with the administration every six months to understand changes in business and organizational objectives in order to continue to provide focused solutions.

VII. Follow the leader ' pay attention to what your successful salespeople are doing. Who are they calling on? What do they say to move the sale forward? What language do they use when talking to their customers?

'Salespeople need to be bilingual and speak two C-languages: Clincalese and C-suite. If the sales force doesn't understand both, consider pooling resources with someone in the organization that does,' said Miller Heiman consultant Pam Switzer.

Visit http://millerheiman.com/healthcare to access a comprehensive white paper on healthcare sales and the Miller Heiman Knowledge Center for additional articles.