CEO Blog

My first job in the medical device industry was in 1983, right in the middle of a huge shift in hospital supply usage, from reusables to disposables. The task at hand was to cost justify the use of single use, non-woven operating room gowns, drape sheets and table covers.  Northern California was my territory, and a major University Medical center was a target for conversion. Here was the situation;

• The hospital had a brand new laundry services center and did not want to idle their investment.
• Single use products would add $300,000 + to the annual supplies budget.
• Surgeons liked the comfort of freshly laundered cotton gowns.

And just then……Yale University developed a Prospective Payment classification system, called Diagnostic-related Groups. The system was rolled out nationwide after an initial 3 year test in New Jersey. DRG’s were intended to reduce hospital reimbursement. This was my first wake up call that Government changes in healthcare reimbursement could affect my livelihood. It didn’t help that the OR Supervisor told me: “You better not have a home mortgage, because disposable products would not fly.”

The hospital converted, the entire USA market converted, and patient infections went down. Single use disposable products flourished.

What’s the point? Even during market changes, product quality and actual product benefits can drive new business.

In 1993, the Clinton administration attempted to set up regional Orthopedic Hospitals, where all Medicare patients would go for hip and knee replacements. This would drive down the cost of orthopedic surgical procedures. I was a marketing director for a major Orthopedic company, and fear of price reductions and market limits caused the industry to scramble. Well, that effort was short lived, as it became evident that Orthopedic surgeons wanted continued product improvements driven by patients who wanted to get back to a mobile normal lifestyle, FAST.   Americans were willing to pay for the best.  Patients wanted to stay at hospitals in their communities. 

Now, here we are again: price limits, surgeon-hospital “gain sharing” programs, reimbursement changes (especially at surgery centers) and close regulation of Orthopedic marketing activities are changing how we do business. 

How does OrthoHelix respond? We design and deliver small bone internal fixation systems, with distinguishable features that are intended to make surgery go smoothly, contribute to patients returning to normal lifestyles and service our customers with a never ending drive to be the best.

This is OrthoHelix.  Surgeons Speak we Deliver.