Ossur/GII issues

Ossur/GII issues

Ralph W Nobbe

12/22/2003

Dear List;

The purchase of GII by Ossur, raises several issues. Specifically, how does
Ossur intend to address the designated representatives of GII being in
direct competition with O&P facilities?

Here in So-Cal, the designated rep for GII is providing GII knee braces
direct to patients, physicians, therapists and any other referral sources
available. Their designated reps engage in stock and bill, provide CPM
machines, cold therapy units, etc. The designated rep has a very
aggressive sales rep force and they are frequently seen detailing/contacting
MD's locally. I have not seen a GII rep in my office in two years.(probably
be seeing one soon though). The GII reps have become a direct competitor
for the OA bracing business. This is despite the GII admonitions that they
refer to O&P facilities when they receive inquiries. They may refer
physicians to
the O&P provider to solve that one time request, but the designated rep
also is advised and will follow-up with the inquiry. (Be stupid not to do
so).

Admittedly the O&P community has not been very strong on the product
sales/marketing side. We have developed our individual businesses through
the delivery of quality patient care and services. Most of us provide and
recommend products that solve the patients problem, we do not receive or
pay commissions based upon products. The designated sales rep has NO
financial incentive to sell products to the O&P community as they receive
their sales
commission based upon the gross sales. Hence the motivation to sell direct
to patients on a retail basis. The designated rep has no incentive to
solve patient problems on an ongoing basis. There is no commission to be
earned. From a business and sales side I can understand that GII must
compete with the likes of the Don Joys, Breggs, etc.

Ossur now has a dilemma. How can Ossur support the O&P community when their
GII division competes directly with our businesses via their designated
rep? How does Ossur intend to reconcile the direct competition of its
sales reps with its Ossur Affiliates? Does the Ossur affiliates agreement
provide
for the affiliates to be considered designated reps for ALL Ossur product
lines? including GII?

In the past Ossur has supported, and continues to support the prosthetic
provider community. Will Ossur also support the orthotic portion of the
industry? I will continue to support those entities that support the O&P
providers. My support stops when they become my direct competitors.

Have a good holiday.

Ralph W. Nobbe CPO


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