DURR-FILLAUER IS SUPPLYING VHA's PHYSICIAN SERVICES PROGRAM

DURR-FILLAUER IS SUPPLYING VHA's PHYSICIAN SERVICES PROGRAM in 19 states, primarily in the Southeast. The wholesaler signed an agreement with the Voluntary Hospitals of America's VHA Enterprises subsidiary, which oversees VHA Physician Services, on Jan. 1, a Durr-Fillauer spokesperson said. The contract is scheduled to run for three years. The physician supply volume purchasing program, which is distinct from VHA's hospital supply program, got underway on a test market basis in 1987. VHA is operating the program with the intent of "strengthening the bond" between doctors and hospitals, according to a VHA spokesperson. Durr-Fillauer is supplying participating physicians with medical/surgical supplies and "routine injectables." "Although the actual benefit [of the program] to Durr-Fillauer is unknown at this time," the company says in its 1987 annual report, "if the program is successful, it has the potential to increase our market share in the alternate site" market. "It will most likely be mid-year before the extent of the benefits of this program can be determined," the report adds. Durr-Fillauer states that the "key point" of the purchasing contract is that the company is "recognized as one of the premier alternate site distributors in the United States." The company does not hold any supply agreements with VHA for the hospital side. Alternate site sales are a fast-growing component of medical/surgical revenues, Durr-Fillauer notes. "Our sales to alternate sites have grown from $ 46.5 mil. in 1984 to $ 74.2 mil. in 1987, an increase of 60%," the company says. "Management believes our medical-surgical division is now the second largest alternate site distributor in the nation." Overall, medical/surgical revenues climbed .8% in 1987, to $ 157.9 mil. Alternate sites accounted for 47% of sales, or $ 74.2 mil. In other segments, wholesale drug sales were up 16.3% to $ 323.5 mil. Source video revenues declined to $ 34.6 mil. from $ 38.5 mil. in 1986, and orthopedic sales advanced 3.1% to $ 10.1 mil.