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Why specialty reprocessing is on the rise (and what it means for hospitals)

January 27, 2020

What does the specialty reprocessor mean for the hospital?
There are several implications for hospitals to consider when responding to the emergence of the specialty reprocessor and the other trends that are now changing the industry:

• Assuming that the existing reprocessing program is running smoothly, the only way you can increase savings is by working with a specialty reprocessor that can secure more FDA clearances so more devices can be reprocessed. Ask the question to your reprocessing partner: How can you increase our savings? In the electrophysiology lab, some of the newest specialty reprocessing devices have increased savings by $1,000 per procedure – or doubled savings. Reprocessing a few more $50 catheters through program optimization does not reach this level.

• Yes, I know that it is more convenient to have one reprocessing contract than to have several. However, this efficiency in supply chain management may come with a high cost. If your current reprocessor does not have clinical area focus, it is likely not growing clearances and savings. Carving out a clinical-area-specific specialty reprocessing program that optimizes savings in a key area like electrophysiology may require two contracts, but this can significantly boost your savings.

• Whether working with a reprocessor that covers all clinical areas or one that is specialized, hospitals must demand specialized knowledge of clinical practices as well as technology. If all your reprocessing partner does is to walk into the hospital and pick up devices, you are likely missing out on major savings. A reprocessing program is only as effective as the confidence of the clinical staff and the level of interaction with third-party reprocessing staff.

• Ask your reprocessing partner for its R&D pipeline: What new clearances are being pursued with the FDA so that savings can increase? Here is the worry: It your reprocessing partner is not getting more clearances, you will not grow savings, and you are likely to see your savings go down. This is because of the short product life cycles in fast-growing procedural areas: A new technology comes out, replacing a device that could be reprocessed with one that can’t. Unless new clearances are achieved, the savings are now down.

• Expect specialized service programs across different hospital units. As mentioned, each area of the hospital functions in its own way in terms of clinical dynamics, purchasing, etc. Your reprocessor should design specific programs to optimize savings in each area.

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