Frederick Health Finds Value in Kermit Partnership

Managing physician preference items (PPI) remains one of the biggest challenges in hospital supply chain. Device manufacturers—often publicly traded or private equity–backed—are highly skilled at maximizing revenue for their shareholders, while hospitals struggle with opaque pricing, inconsistent billing practices, and the constant pressure to reduce costs without disrupting clinical care.

That’s where Kermit comes in.

For nearly a decade, Mike Ewing (Ewing) of Frederick Health has partnered with Kermit to bring clarity, control, and significant savings to its implant spend.

“In the high-dollar PPI space, most of the big device manufacturers are publicly traded companies or backed by private equity; thus, they are experts at generating profits for THEIR shareholders and reps are taught how to generate more revenue at the hospital’s expense. If you are not using a firm with Kermit’s expertise and software, you are losing money…guaranteed.”
— Mike Ewing, Director of Supply Chain, Frederick Health

Delivering Measurable Results

Over nine years, Ewing has worked with Kermit at several entities to capture more than $10 million in validated value across Total Joint, Trauma, Spine, Sports Medicine, and Cardiac Rhythm Management categories. These results are not abstract estimates—they’re closely tracked, monitored, and confirmed through Kermit’s software, giving the supply chain team confidence in presenting outcomes directly to their team.

A “One-Two Punch” Approach

Ewing describes Kermit’s unique value as a “one-two punch”:

1. Achieving Contract Pricing – Kermit leverages deep market intelligence and strategic benchmarking to ensure negotiations are grounded in physician preference, case metrics, and aggressive—but realistic—pricing constructs.
2. Maintaining the Gains – Once contracts are in place, Kermit’s software actively monitors cases in real time. Bill sheets submitted electronically are validated, non-compliant cases are flagged instantly, and procurement staff can address issues proactively.

Beyond GPOs and Competitors

Frederick Health has evaluated other firms and group purchasing organization (GPO) solutions, but none delivered the same combination of technology, partnership, and accountability that Kermit provides. As Ewing puts it, Kermit has become “an extension of our team,” equipping stakeholders with the information they need to challenge reps or engage physicians constructively when billing discrepancies arise.

Key Takeaway: Hospitals don’t have to leave money on the table. With Kermit’s software and expert services, health systems like Frederick Health are not only winning in negotiations but also ensuring those savings stick for the long term.