While economists fret about deflation, Rosemary Pitts, vice president of finance for the nuclear pharmacy services division of Cardinal Health, found her most recent challenge involved a major price hike.

"We had a large cost increase in one of our raw materials in the nuclear medicine business," says Pitts. "There are only five reactors in the world that make medical isotopes, and one of them was shut down, so 20% of the supply was gone and our costs went way up."

Given the price hike, "we had to either lose profits or convince our customers–cardiology clinics and hospitals, who themselves were suffering from falling demand and reimbursement pressures–to agree to our passing on the higher prices," Pitts says. "Because we were the first supplier to raise our prices, we had to do a lot of work with our sales team, but we ended up being successful at getting our customers to agree to higher prices."

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.