MedPassage, a digital healthcare startup creating a medical device e-commerce platform, recently supported its first surgery with MedPassage procured implants on April 18, 2013. Founded in January of 2012, MedPassage has created an Amazon-like market that services a segment of the market they have identified as valuing lower prices over sales support in the operating room, which is currently an industry norm. By using MedPassage and foregoing in-person sales support, members physicians gain access to FDA approved implants at prices 40 to 60 percent below industry averages.
The company's co-founder and CEO, Gavin Fabian says, "This is a huge milestone for MedPassage as it validates our technology works and the market is real."
In this first case, the spine surgeon used his MedPassage account to find alternative implant options for a cervical spinal fusion procedure. The implants chosen for the surgery were priced at 55 percent below their contracted rate. To receive this pricing, the medical center did not have to negotiate pricing, enter into a contract, agree to compliance requirements, or pay any fees to MedPassage.
"Just like when going to the grocery store, buyers are free to walk in the door and shop for products at no cost," says Mr. Fabian. "There are both premium and generic brands, and the prices for all products are clearly listed. If using a premium brand is important, the price may be higher than the generic brand, but the buyer has all the information and can make an educated decision based on their own value equation. Most importantly, if the buyer does not find anything worth purchasing, he/she can walk out with no repercussions."
Device companies selling on MedPassage offer transitional support for the first one to three cases when trialing a new product, and surgeons can always order sales support for any future case. Mike Biselli, the company's Chief Marketing Officer, says, "As an ex sales rep for several device companies, I was rarely needed for the routine cases, but the surgeons had to pay for my time whether needed or not. MedPassage allows physicians to pay for the level of support needed for each case, and no more."
The company believes it is poised for rapid growth in 2013 and beyond, citing several market trends:
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The company's co-founder and CEO, Gavin Fabian says, "This is a huge milestone for MedPassage as it validates our technology works and the market is real."
In this first case, the spine surgeon used his MedPassage account to find alternative implant options for a cervical spinal fusion procedure. The implants chosen for the surgery were priced at 55 percent below their contracted rate. To receive this pricing, the medical center did not have to negotiate pricing, enter into a contract, agree to compliance requirements, or pay any fees to MedPassage.
"Just like when going to the grocery store, buyers are free to walk in the door and shop for products at no cost," says Mr. Fabian. "There are both premium and generic brands, and the prices for all products are clearly listed. If using a premium brand is important, the price may be higher than the generic brand, but the buyer has all the information and can make an educated decision based on their own value equation. Most importantly, if the buyer does not find anything worth purchasing, he/she can walk out with no repercussions."
Device companies selling on MedPassage offer transitional support for the first one to three cases when trialing a new product, and surgeons can always order sales support for any future case. Mike Biselli, the company's Chief Marketing Officer, says, "As an ex sales rep for several device companies, I was rarely needed for the routine cases, but the surgeons had to pay for my time whether needed or not. MedPassage allows physicians to pay for the level of support needed for each case, and no more."
The company believes it is poised for rapid growth in 2013 and beyond, citing several market trends:
- More cost efficient implant procurement will be critical to support baby boomers in need of surgery with Medicare insurance that reimburses poorly.
- The incoming generation of surgeons are more receptive to online technology and more familiar with the MedPassage-style purchasing.
- In the next decade, the percentage of public payor patients is expected to grow due to the aging of baby boomers and implementation of the Affordable Healthcare Act.
- After implementation of EMR systems, implant cost reductions will become a top priority for US hospitals.
More Articles on Supply Chain:
Medtronic Spine Releases Device for Multilevel Spinal Fusion
Ohio Fisher-Titus Medical Center Chooses ProVation Order Sets
Amenida Doubles Size of Spine Device Manufacturing Facility