From the April 2017 issue of HealthCare Business News magazine
Vendor pushback
Another common SUD reprocessing hurdle health systems face in the OR is vendor pushback. As the reprocessing market has grown, vendors have deployed a range of strategies to limit a hospital’s access to reprocessed SUDs. One of the most common tactics we have seen is contract limitations. On the surface, a discounted price or a rebate tied to a volume commitment from the OEM might look appealing. In some instances, the prices of other products in that OEM’s portfolio might be raised to offset the discount. In others, a hospital may find it has to significantly increase purchase volume to qualify for the rebate.
While not an exhaustive list, these examples underscore the importance of carefully examining contracts to identify and address tactics that limit reprocessing savings opportunities. Some vendors have also pushed back by threatening to remove representatives from procedures that use reprocessed devices. To help gain more control over their supply chain, some health systems are beginning to train staff to play the role the representative once did. By reducing dependence on vendor support, health systems have more options to make decisions with their hospitals’ best interests in mind.
ORs are ripe with savings opportunities. Utilizing SUD reprocessing in the OR can play big role in helping health systems achieve both financial and environmental sustainability. When ORs can overcome these common reprocessing obstacles, they can unlock their true savings potential.
About the author: Bill Scott is senior marketing director for Stryker’s Sustainability Solutions division, an industry leader in providing third-party medical device reprocessing and remanufacturing services.Back to HCB News
