Expert Q&A: The Value of Strategic Partnership Beyond Price

In an era when every dollar must prove its worth, health system leaders are being asked to justify each partnership not only in terms of cost savings, but also in measurable, long-term value. While price will always be a factor in choosing or remaining with a distributor, the lowest bid is no longer synonymous with the greatest benefit – especially when hidden costs, contract complexity, and regulatory volatility are factored into the equation. To explore why value beyond price has become the new standard for strategic distribution partnerships, we sat down with Rafael Saenz, PharmD, MS, FASHP, Vice President, Knowledge Management & Thought Leadership, Professional & Advisory Services, McKesson Health Systems, who shared insights on how McKesson helps health systems achieve more by combining data-driven visibility, proactive guidance, and operational excellence.

MHS Editorial Team (MHS): Why is focusing on price a limited way of thinking when selecting or remaining with a distribution partner?

Rafael Saenz (RS): Price has always been and will always be important. It can be the entry point for almost any conversation. And of course price is tied to value, but price on its own is a short-term measure that doesn’t capture the total value – or the total cost – of a partnership. The lowest price on a spreadsheet isn’t going to amount to much if there are errors, inefficiencies, or missed opportunities that erode that value later down the line – and that’s what health systems are (or should be) thinking more about in today’s environment – that long-term value you get from knowing that your distributor is continuously helping ensure accuracy and compliance and all of those things while working alongside you to meet your goals.

MHS: Can you elaborate more on the vulnerabilities that can go along with “price-only” thinking and how a high-value strategic partner can help insulate a health system from those?

RS: We often see things like this play out in contract management, for example. A health system may negotiate the lowest possible price upfront, but again – if the distributor lacks the infrastructure to monitor and maintain contract accuracy, those perceived savings can theoretically vanish overnight and be missed for months or even years before someone notices. In other words, without that oversight, short-term savings may end up as long-term exposure. At McKesson, our Contract Concierge team exists for this very reason – to constantly monitor contracts and provide visibility into whether the prices you’re paying are the prices you agreed to. Not only that, but we then identify and help operationalize a solution to restore those prices, close the gap, and keep it closed.

MHS: What other ways does a strategic partner like McKesson add value for health systems beyond price?

RS: I always go back to the value of alignment. Having the confidence in knowing that your distributor is truly aligned with your goals is paramount to long-term value and success. And not only are we aligned with our customers' goals, but we have internal alignment as well. Our 3Ts – tools, teams, and technology – are all working in lockstep, turning data into insights and ultimately into action that takes the customer further. That could mean using data to flag compliance risks before they escalate, findings opportunities to reduce unnecessary spend, or helping extend value into new care settings like infusion or specialty pharmacy. We are also helping to build strength into supply chains so that our customers are confident in product availability even when a disruption occurs. Again, our efforts are deliberately aligned with our customer’s challenges and goals.

MHS: Can you provide some more insight into how your “3Ts” – tools, teams, and technologies – are uniquely positioned to set McKesson apart as more than a distribution partner?

RS: Our model combines technology, transparency, and high-touch services that go beyond transactions. Tools like Contract Concierge, again, and ERA (Enhanced Reporting & Analytics) provide remarkable visibility and scope that help to simplify highly manual and deeply complex processes, which ultimately helps inform health systems leaders on critical decisions. But our people are truly the difference-makers. Our dedicated representatives are so well-versed in even the most nuanced aspects of their health system customers’ businesses and are able to provide a level of tailoring in their service that I would argue would be difficult to match.

MHS: If you had one message for health systems evaluating renewal options for their distribution services today, what would it be?

RS: Try not to think of a renewal as just another contract extension. Instead, consider it a chance to reassess whether your partnership still aligns with your health system’s vision. Ask yourself, “Am I confident that this relationship is offering the pricing, transparency, supply assurance, and quality of service that I need both today and when the market shifts or new challenges arise?” My advice is that the right partner isn’t just the one that helps you purchase at the lowest price. That’s only a piece of the puzzle for success. The right partner also has to have the expertise and resources in place that help your health system plan, prepare, and prosper. As a former Chief Pharmacy Officer, I always firmly believed that I had a uniquely in-depth understanding of my business. Price was always a major consideration, but in an environment where cost avoidance and savings were important, having a trusted partner that understood my business as well as I did and helped cover my blind spots made my job easier and reinforced my peace of mind.”

Choose a distributor that can take you further

In a time when every decision health systems make carries more weight than ever before, focusing on price is no longer enough – and may even be a barrier to growth and success. True value – the kind that goes beyond purchasing at the lowest price point, and the kind that can help take your health system further – may lie in a strategic partnership built on trust, transparency, and alignment. At McKesson, we share your passion for what’s possible in achieving more for the business of pharmacy and the advancement of patient health.

Want to know more about the value of a strategic partnership that can take you further than a vendor relationship focused on price alone? Find out here.

To learn more about going further with McKesson, contact our experts today.

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This document is intended for informational purposes only and does not constitute medical, legal, or financial advice. The views expressed herein are those of the speaker and do not necessarily reflect the official policy or position of McKesson Corporation or its affiliates. Any statements regarding operational, clinical, or financial outcomes are illustrative in nature and should not be interpreted as guarantees of performance or results.

All claims, whether express or implied, are subject to substantiation and should be evaluated in the context of applicable regulatory requirements..

References to partnerships, data analytics, or predictive modeling are general in nature and do not imply endorsement or certification by any regulatory authority. Readers are encouraged to consult with qualified professionals before making decisions based on the information provided.

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