[October 31, 2022 // Washington, DC and Berlin] A new study, published in the Journal
Sustainability, provides the first detailed analysis of the trend toward servitization contracts
between reprocessing companies – particularly those that are a division of an original equipment
manufacturer (OEM) – and hospitals. Servitization, when customers pay for the “service” rather
than simply buying the product, is a growing trend that has gained traction with hospitals that
purchase “single-use” medical devices that FDA has found can be safely reprocessed.
The study, “Green Servitization in the Single-Use Medical Device Industry: How Device OEMs Create
Supply Chain Circularity through Reprocessing,” uses interviews with industry experts and
information from secondary sources, to explore how the green servitization phenomenon is
supporting the transition of the industry to a more sustainable economic model.
Under this model, instead of focusing exclusively on developing and selling newly manufactured
products, OEMs extend their business proposition to value-added services that are explicitly aimed
at prolonging the service life of products as much as possible, and pursue recovery as opposed to
replacement with a novel unit – all of which minimizes waste and resource consumption. “This
first-of-its-kind paper provides an overview of a circular economy in action, using reprocessing as a
case study to identify pathways to a lower-cost, lower-emissions healthcare supply chain,” said
Daniel J. Vukelich, Esq., President and CEO, AMDR. “As evidence continues to mount demonstrating
the economic, environmental and logistic benefits of reprocessing, Dr. Benedettini’s paper provides
a roadmap for more medical device companies to join the growing movement toward eliminating
costs and waste by reprocessing or servicing medical devices.” . . .