"We recognize the value that GPOs provide," Derrick says. "Part of our DNA at OpenMarkets is from that same group that organically created the GPOS, and that is organically creating OpenMarkets here. "

EARLY DAYS

But these are still early days for OpenMarkets. The company, which has under 20 employees, was incorporated in late 2010, but only launched its first deal last fall. Since then, it has done just five or six events, for a total transaction volume of under $1 million, according to Tom Derrick.

Right now, the company has a network of 400 hospitals that it's busily trying to grow. In the last month, it announced three new clients: Beaumont Health Systems near Detroit, the Methodist Hospital System in Houston and Heritage Valley Health System in Pittsburgh.

Also, for the company to succeed, it has to get providers involved. One soon-to-be-launched program for encouraging provider participation is the "buying room." In effect, this is an online tool for its clients where they can create or join groups of other supply chain executives all looking to buy the same equipment in the same time period. When enough people join a group, OpenMarkets would then approach vendors to get a deal going.

CHIEF CONCERN: MALAISE

But of all their corporate challenges, Derrick says at the foremost is what he calls the "malaise" in health care to try new approaches. Still, the company says as providers become more eager to pinch pennies, OpenMarkets will take on more users.

"A health care provider is running the same kind of margins as a grocery store, anywhere from one to three percent," Michalek says. "And they're really hurting these days. We can help."

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