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The keys to successfully implementing a reprocessing initiative at an ambulatory surgery center

September 13, 2021
Business Affairs

6. Be aware of OEM counter-selling efforts
Reprocessing has been around for more than 20 years and while major manufacturing companies have acquired reprocessing companies to serve the full needs of the marketplace, certain OEMs still try to sell against the value of reprocessing. Some OEMs build new devices with anti-reprocessing technology to prevent their devices from being reprocessed. Some try to discredit the quality of a reprocessed device while others include language in contracts that either prevent you from using reprocessed devices or set such high-volume thresholds to receive their discounted pricing that you cannot fully engage in a reprocessing initiative and remain compliant with their contract. These strategies serve to the benefit of the OEM who is trying to protect their sales volumes and profit margins, but this is done at your expense. As such, stand firm and don’t let OEMs minimize the savings that you can generate for your facility. Major GPOs prevent OEMs from restricting reprocessing efforts by eliminating volume commitments, thus follow suit and maximize your savings. Negotiate your best price with the OEM and engage in reprocessing.

The best run reprocessing programs, which generate the greatest amount of ongoing savings, are those that are driven from the executive team down to the OR team and are ones where results are discussed, and adjustments made to maximize your savings.

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In a post-COVID19 era, where profitability has been impacted by higher supply costs, lower reimbursement and a more cost-conscious consumer base, reprocessing requires no capital investment to implement and can be the single most significant initiative that you can undertake to reduce supply costs and strengthening your bottom line. With savings that can easily reach $60,000 to far greater than $100,000 annually, it is worth the effort.

About the author: Ken Diebner is vice president at Provision Device Reprocessing Solutions.

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