The True Cost of Single-Source Wholesaler Agreements for Healthcare Practices
Many practices are locked into single-source wholesaler agreements, trading flexibility, pricing control, and tailored support for seemingly “free” benefits such as inventory management and/or dispensing software systems. At first glance, convenience and technology from large wholesalers may appear attractive. But beneath the surface lie hidden trade-offs that can cost your healthcare practice significant time, money, and missed revenue opportunities.
This blog outlines the key reasons why consolidating your wholesale relationship under a single vendor can be detrimental and what to consider when evaluating a more strategic, flexible sourcing model.
1. Higher Costs, Lost Bargaining Power
No competitive pricing: Single-source deals prohibit price comparisons. Without vendor competition, you lose leverage to negotiate, often resulting in higher costs per unit.
2. Inventory Shortages and Supply Lockouts
Harder fallbacks if out of stock: If your sole supplier runs out of an item, there is rarely a back-up option. These gaps can delay care and erode the trust of patients.
Increased risk of stock-outs: Studies show that single-supplier agreements amplify supply failure risks and drug shortages (Kanyoma et al.)
3. Operational Blind Spots & Hidden Risks
Opaque supply chains: Single-source agreements limit visibility into second and third-tier suppliers. A single choke point can cascade disruptions across your entire operation (Resilinc Editorial Team).
Cyber & logistics vulnerabilities: Relying on a single supplier or wholesaler doesn’t just put your physical inventory at risk; it also leaves your organization exposed if that supplier experiences an unexpected logistics issue or a system outage.
4. Support & Revenue Opportunity Gaps
Lack of tailored support: Big wholesalers often prioritize volume, not partnerships. They rarely offer the strategic, concierge-level attention needed to optimize your revenue cycle or streamline Buy & Bill workflows.
Missed technological advantages: Without tech that unifies inventory, dispensing, billing, and analytics, you're left piecing together systems, losing efficiency and insight.
A Smarter Alternative: Supplier-Agnostic, Agreement-Free Flexibility
While traditional multi-source strategies offer more flexibility than single-source contracts, they still leave practices managing relationships, compliance terms, and competing platforms. The most forward-thinking approach is one that eliminates restrictive agreements altogether.
No binding contracts: By not being locked into one wholesale supplier, practices regain full control of purchasing without being locked into fixed terms or rebate-driven incentives.
Dynamic sourcing: Practices can make real-time purchasing decisions based on availability, price, and patient needs, without being constrained by a wholesaler’s preferred catalog.
One platform, all suppliers: OnePulse Connect empowers practices to manage inventory, purchasing, and dispensing across multiple vendors, without favoring or locking into any single wholesaler.
Strategic autonomy: Healthcare practices can respond to market conditions instantly, source more competitively, and protect margins.
Conclusion
In today’s dynamic specialty pharmacy ecosystem, relinquishing supplier competition and flexibility is too high a price to pay. Single-source wholesaler agreements may look easy—but they trap practices into higher costs, supply fragility, contractual ambiguity, and missed revenue potential. Instead, it’s time to take control:
Negotiate for flexibility to source from multiple vendors.
Insist on full supply chain visibility and backup sourcing.
Partner with a patient-centric, healthcare technology supplier that offers dedicated support, workflow optimization, and analytics that maximize revenue and efficiency.
About Elevate Health Technologies
At Elevate Health Technologies, we understand the challenges practices face: constrained budgets, complex billing workflows, inventory anxiety, and vendor lock-in. That’s why we built OnePulse Connect, a comprehensive, supplier-agnostic technology platform that transforms how your practice sources, dispenses, bills, and manages medications and/or supplies.
Integrated technology – OnePulse Connect centralizes your entire medication management workflow, from Buy & Bill to inventory, Medically Integrated Dispensing (MID), In-Office Infusion (IOI), reimbursement tracking, analytics, and reporting, all in one easy-to-use platform.
Strategic partnerships – We go beyond software. Our team offers front-end and back-end implementation services, concierge-level support, and ongoing optimization—ensuring your practice maximizes every clinical and financial opportunity.
Supplier-agnostic sourcing – OnePulse Connect frees you from restrictive agreements and distributor-provided systems. Practices can place orders directly with any supplier, monitor pricing in real time, and maintain full purchasing autonomy.
Contact us today to learn how OnePulse Connect can elevate your revenue, reduce risk, improve patient care, and bring greater clarity to your medication operations.
Kanyoma, Kizito Elijah, et al. Sourcing Strategy and Supply Chain Risk Management in the Healthcare Sector: A Case Study of Malawi’s Public Healthcare Delivery Supply Chain. Journal of Management and Strategy, vol. 4, no. 3, 2013, pp. 16–26. Sciedu Press, https://doi.org/10.5430/jms.v4n3p16. Accessed 18 June 2025.
