4. Device availability
A reprocessor needs to get clearance from FDA to reprocess every device individually. This means that some reprocessors may have a wider variety of devices available for reprocessing than others, increasing the savings realized from the program. A reprocessor that gets clearance for a new cardiology device may instantaneously add another $500 in savings per procedure. Make sure to choose the reprocessor that has the most clearances (for expensive devices) in each area of the hospital. Otherwise, you may miss out on substantial savings.

The competitive landscape for reprocessing clearances changes over time, so even if you are happy with your reprocessor, you should continuously evaluate if you are working with the company that can give you the highest savings. Additionally, you should maintain an ongoing dialogue with your reprocessor about what additional devices may be reprocessable, and what devices your department spends a lot of money on. Finally, make sure staff is instructed every time a new device is added to devices that can be reprocessed – otherwise, it will miss the collection bin.
5. Supplier controls
In healthcare, hospitals often have to use only a few suppliers within a certain product area. This creates a risk that suppliers will take advantage of the hospital’s dependence on them. We see this in cardiology when suppliers try to (and succeed in) stopping hospitals from using reprocessed devices to protect their own revenue. The hospital then pays for their dependence with lost savings. In cardiology, supplier controls are economic controls, and controlling the supplier means owning the often-complex equation that makes the service line profitable – or not.

When so many cardiology departments miss out on two-thirds of their potential reprocessing savings, it is often because a supplier has prevented the hospital from using certain reprocessed devices – usually the most expensive ones. In seeking to remedy this problem, a good place to start is by – again – doing the math and discovering whether the demands of the supplier – and what you get from it – are worth the lost cost savings. I know of examples where cardiology departments lose $700,00-800,000 a year from such lost savings opportunities.

Very importantly: Seek to build a more equitable market environment around your technology purchases. Using more than one (or two) suppliers massively changes your ability to move market share and, thereby, obtain better supplier controls. In other words, if a manufacturer prevents a hospital from using reprocessing to reduce costs, that hospital can more easily move its purchases to another supplier.

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