THE ISSUE:
A vendor may offer hospitals a mix of new and reprocessed devices at a blended price, or for a price lower than buying all new — but slightly higher than for buying all reprocessed devices. Similar examples include:
- An EP manufacturer that promises hospitals that it will provide new and reprocessed devices in a 1:3 ratio – but ending up providing a lot fewer reprocessed devices than contracted;
- an EP manufacturer offering clearances for reprocessed devices that they end up only making available in the least popular sizes and models; and
- a major trocar manufacturer offering blended boxes of new and reprocessed trocars, but not providing accountability on the actual number of reprocessed items (versus new) and not maximizing the reprocessing potential.
Possible Solutions. Blended arrangements may or may not be in the hospitals best interest; it is important the hospital evaluate all the terms and demand transparency from the vendor to ensure the facility is receiving the savings promised. Evaluate whether the contract obligates the hospital to a minimum purchase amount that is realistic and if the cost is truly a fair blend. Understand and ask for transparent accounting for how many new and reprocessed devices are provided under the agreement and receive ongoing reporting to compare the two. Set up your internal operations to ensure maximum device utilization by maximizing the purchase and use of reprocessed products first, than buying more new. It’s important that your reprocessing partner can provide for 100% product availability options that allow for maximized savings results.