Despite the sometimes poor reputation, generic brand implants and supplies are stable technology and quality products with a value price.
Dr. Rhode founded Rhode Orthopedic Group, a maker a value-based orthopedic implants.
“Generic isn’t low quality,” he said. “We streamline. It’s the same contract manufacturers but with a disruptive model. We sell a lot for a little [money].”
When you take the surgery center directly to the manufacturer, you get the purest cost reduction possible, he said.
The difficulty in switching from a traditional model of buying for sales representatives to buying direct from a maker is in rethinking the process and empowering the surgery center or hospital physicians.
Commercial sales representatives add 43 percent to the cost of the implant, and when a rep is in the operating room, 30 percent more implants are used, Dr. Rhode said. To become empowered owners, physicians need to separate from the sales representatives.
One strategy for replacing the need for a sales representative from a retail supplier is to train an operating device technician, one person who knows how to use the implants and supplies and can train physicians.
“Become an owner; own your own instruments and implants and many your inventory,” he said. “Ultimately, you have to say you are going to become an owner again.”
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