I have watched with interest the discussions re: Hanger and preferred status
from SPS and the other Hanger companies.
I hate to read unsubstantiated rumor and innuendo on a professional list as
this one.
But, since the issue has been raised and there have been no official denials
from any of the Hanger upper management team, we must assume that it is
indeed based on truth.
I question whether these practices are a violation of antitrust laws.
As many of you probably don’t know, Hanger was forced to break up into
separate companies back in the late 40’s or early 50’s, due to antitrust
violations. As I have been told by an old timer I used to work with, Mike
Cestaro was an accountant who was brought in to straighten out the mess and
later was able to take control of Hanger Washington. The rest is recent
history.
The costs of providing O&P care is about 1/3 hard items (those purchased from
SPS, PEL, Knit Rite, Cascade or whomever). The balance consist of labor costs
and overhead (rent, utilities, insurance, and, etc.). If one could reduce
their “hard costs” by 20-50% by buying from “yourselves,” he could save
possible $100,000 per year in a typical million dollar gross sales facility.
A significant sum that goes straight to the bottom line!
It is clear to me that any independent facility who supports the competition
by purchasing from them is sowing the seeds of their own destruction.
My facility does not purchase from SPS, Seattle Systems, CASH, Lenox Hill,
Dobi, or the like unless those components are specifically requested. There
are too many other manufacturers and suppliers out there who are also being
hammered by the “big dogs.”
Support those who support you!
Ron Kidd, CPO
American Orthopedics
Columbus, Ohio
