Earlier in the week, BravoSolution and Sciquest announced a partnership to pursue the healthcare Spend Management market, offering an integrated sourcing and procurement offering aimed at providers. The solution clearly appears tailored to healthcare providers who are already working within the complicated sourcing mess that has come to define medical procurement. For example, the partnership promises to not only help providers "reduce the cost of care" and "negotiate and leverage strategic contracts" -- both of which sound rather generic from an industry perspective -- but also to "track and manage locally-managed as well as GPO contracts," which is obviously highly tailored to the healthcare buying environment. BravoSolution and Sciquest intend to deliver these benefits by deploying joint offerings that help manage the lifecycle of healthcare spending. This will include providing both "Spend Snapshots: spend analysis profiles with procurement ROI benchmarking" as well as "Integrated Strategic Sourcing and Procurement". They also plan to deliver enabling services as well as "wellness checks". How cheeky.
Independently, both BravoSolution and Sciquest have had a quite a bit of success in the healthcare / life-sciences market. BravoSolution also has successfully navigated the GPO ecosystem, proving what at least would appear to be a non-competitive value proposition with these two-ton, well-fed gorillas (no small feat given the potentially competitive overlap between sourcing providers and existing GPOs). But how will they fair together? Neither company has an extensive track-record of successful partnering with other software providers in this end-to-end Spend Management capacity. Moreover, BravoSolution is new to partnering on the P2P side and bringing together an integrated eProcurement offering. Still, if the pie is big enough and they can get some initial quick wins, I'm sure both will find a way to collectively dig in together over the longer haul.
I take it as a good sign of a highly tailored partnership. I asked BravoSolution if they planned to pursue other sectors with SciQuest and this is what Liz Flynn, Director of Marketing for Bravo, had to say: "We've chosen to focus on those industries because Bravo and SciQuest both have deep experience in healthcare and life sciences, so it's an obvious fit for us to enter the market with a best-of-breed solution tailored to the needs of those audiences. At this stage, they are the only markets we're approaching jointly, but we will continue to look for other markets where we have a differentiated offering to bring to the table." In the meantime, let's see if the combination of BravoSolution and SciQuest can help to drive some much needed costs out of the healthcare supply chain and whether they can collectively navigate the special interests creating both complexity and waste in the system. Incidentally, I confirmed with Emptoris that they are maintaining their partnership relationship with SciQuest as well.