Why The VA and Government Contracting Should Be Your FIRST Stop
Debunking Myths And Unlocking Opportunity: Why The VA and Government Contracting Should Be Your FIRST Stop
By LEONARD NALL
Partner, Federal Accounts Contract and Sales Specialist
[July 17, 2025] – Many small and mid-sized healthcare companies shy away from government contracts, especially with the Department of Veterans Affairs [VA], believing the application/approval process is too complex, too cumbersome, too slow, and they assume the VA demands the lowest purchase price.
The reality …? Most companies start by targeting Group Purchasing Organizations [GPO] and Integrated Delivery Networks [IDN], wrongfully assuming their chances of landing a government contract are slim to none. This hesitation is often based on outdated assumptions. In truth, the VA offers unique and potentially lucrative advantages, especially for those willing to learn its system, understand its culture, and play “the long game”. In short, a VA contract may take a while but the wait may well be worth it for you and your company.
The VA “Sweet Spot” — Scale and Impact
With 166 VA hospitals and more than 800 clinics nationwide, the VA represents a massive, concentrated opportunity. While Military Medical Centers [MMC] serve a younger, generally healthier patient population, VA patients are more likely to present with more acute and complex health challenges such as Post-Traumatic Stress Disorder [PTSD], depression, substance abuse, obesity, socio-economic pressures, and more.
The VA’s holistic approach to healthcare addresses not just medical needs, but also social, psychological, and economic factors, making it a lifeline for many veterans who might otherwise face significant barriers to care and well-being. Companies that pursue and land a VA contract for high-quality, innovative products or services can make a meaningful difference in the lives of those who need it most.
And there’s more good news …
Higher Average Selling Price … and Why
Contrary to popular belief, the VA often pays the highest average selling price for products, the exact opposite of what so many in healthcare believe. In fact, every company I’ve worked for has seen the highest average selling prices in its government contracts. Why? Unlike GPOs and IDNs that guarantee sales volume in exchange for discounts, VA contracts come with no guarantees.
You may become an approved vendor to the VA – admittedly, investing significant time and money in the application process – but there are no assurances that Seal of Approval will get you what you ultimately want … an actual contract. I liken it to applying and paying for a fishing license. Yes, you’ve put yourself in position to legally catch fish but you may go a lifetime with an empty hook and no fish to show for your efforts. It’s because of this risk, the VA simply does not merit the lowest price.
This, of course, begs the question, “Do I really wanna roll the dice?” I say yes, and here’s why …
Sales Teams Love the VA … and Generally Speaking, the Feeling is Mutual
Sales reps who master the VA system and culture tend to land sales and thrive because the VA is known for its deep loyalty to vendors. Once you’re in the door, trusted, and under contract, they’re very likely to stick with you because, plain and simple, you make their jobs easier. Many VA staff, especially administrators, value stability and simplicity. They don’t want to disrupt a good thing. Hey, if it’s working, “Why rock the boat?” is the thinking. So if you’re dependable and ethical, you essentially become the “Easy Button” on their desk.
Access to Stakeholders Is Much Easier than You May Think
Unlike many hospital systems with strict access controls, VA facilities are remarkably open and accessible, the way the market used to be. Even today, it’s not unusual to walk into a VA facility, meet with stakeholders, and build relationships without the red tape and rules that get you escorted out elsewhere. This makes it simpler for reps, vendors, and even patients to connect with end-users and decision-makers within the facility.
Further, the VA operates as the largest integrated health care system in the U.S., allowing it to invest in capabilities and services that smaller or fragmented non-government hospital systems cannot.
Another VA advantage is their restriction on product bundling. Each approved product has its own, exclusive contract, If you’ve got multiple products in your portfolio of offerings, you’ve got the opportunity to land multiple sales. And when it comes to pricing, numbers are pre-negotiated between the VA and your company’s leadership. It is not negotiated at the Sales Rep level which means reps are free to operate more like Account Managers, focused on ensuring orders are fulfilled while also enhancing and sustaining key relationships which, in turn, can lead to other VA referrals.
Outsourcing VA Contracts – A Smart Move for Small-Mid-Size Healthcare
Companies
Mega-companies, the “big boys” such as J&J, Pfizer, Baxter, etc., often have entire teams dedicated to gaining VA approval and landing government contracts and sales. Most small businesses don’t have that luxury. Instead, they can — and should — leverage VA distributors who already know the system and are trusted, established entities with key VA points of entry.
Going the outsourcing route means distributors will handle contracts, distribute products, issue invoices, collect payment, then pass along your share of the profits. They do this for a percentage of sales [typically 8-12%]. That’s a relatively small price to pay for the luxury of offloading a ton of tedium. Plus, it frees you up to focus on what you do best: Manufacturing great, new, innovative healthcare products and pursuing more sales.
If your company does not have an internal sales force, partnering with Excelerant makes great sense. We can connect you with approved VA distributors, or we can train your team on VA navigation, explain the VA culture based on experience, and help you press your own “Easy Button.” Going it alone will lengthen your learning curve and delay and/or lessen the likelihood of you securing a VA contract or sale and enjoying long-term success.
Final Thoughts: Don’t Let Myths Hold You Back!
As stated earlier, pursuing government sales requires patience and a strategic mindset, but the payoff is worth it. Once you’re in with the VA, it’s hard to lose your spot. The relationship “sticks”, so to speak. The margins are healthy, and your impact on VA patients can be life-changing.
Contrary to the belief of most small-mid-size healthcare companies, the VA should be one of the first places to target. With the right approach, enlisting the knowledge and experience of the right partners, and having a willingness to learn, you can unlock a lucrative channel that delivers both profit and a meaningful purpose.
ABOUT LEONARD NALL
For 25+ years, Leonard has successfully directed large corporate government sales departments. He has mastered government sales and contracting by interacting directly with customers at all levels of federal government. Leonard has sold more than a half-billion dollars in products and services, including radiology, cardiology, anesthesia, prosthetics and implants, operating room products and surgical disposables, central supply, sterile processing, biomedical engineering, emergency room, intensive care unit, and logistics and contracting. He serves as Co-Chair of the Medical/Surgical Committee for the Coalition for Government Procurement which affords him access to key leaders at the U.S. Department of Veterans Affairs and Department of Defense. -
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ABOUT EXCELERANT CONSULTING
Excelerant Consulting is the go-to organization for med-tech companies that need to position products and services successfully for value analysis committees, contract acquisition, and sales modeling and execution to commercialize the launch of medical devices or services with Group Purchasing Organizations [GPO], Integrated Delivery Networks [IDN], or Regional Purchasing Coalitions [RPC]. Our clients rely on us to enhance their product positioning, navigate corporate contracting opportunities, and provide sales support to accelerate sales growth. -- For more info, contact Excelerant Consulting at info@excelerantconsulting.com