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How the medical supply industry blocks device startups from selling to hospitals

washingtonmonthly.com

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Re: How the medical supply industry blocks device startups from selling to hospitals

#21

Post by johngalt »

bsenftner wrote: post #3

I experienced this somewhat when consulting for a medical device startup. They'd developed a modular system supporting Laparoscopic procedures, reducing hands during surgery, which equated to significant safety increases as well as cost reductions. However, their big issue continues to be navigating the procurement process at hospitals, which is akin to requiring a full time lobbyist per hospital for the duration of…

You're selling to the wrong party. Don't sell it to the hospitals, sell it to the insurance companies.

Hospitals will be thinking

1. "will insurance claims be rejected for non-standard treatment?"

2. "If something goes wrong with my malpractice insurance cover it?"

Even if everything goes correctly, and procedures are better/faster/cheaper the insurance companies will just lower the amount they pay. The hospital doesn't have a lot to gain here.

Conversely if an insurance company hears about a new better/faster/cheaper treatment suddenly that's they only thing they will pay for and the company selling that treament makes a mint, with hospitals knocking down their door.

Re: How the medical supply industry blocks device startups from selling to hospitals

#22

Post by diek »

DanBC wrote: post #15

The movie EDIT "puncture" (thanks diek!) is a reasonably entertaining account off the retractable needle. US healthcare (and thus, US patients) may miss out on improved syringes, but I hope they're able to sell many of these to the developing world where needle re-use is a serious problem. Re-using needles when 10% of the population has HIV/AIDS is awful. Not just because you risk transmitting HIV to other people, bu…

I thought it was "Puncture", starring Chris Evans.

Re: How the medical supply industry blocks device startups from selling to hospitals

#23

Post by excuse-me »

kyro wrote: post #7
jrockway wrote: post #2

contact with our health care system the fifth leading cause of death in this country Whoa. Can anyone give this in-passing snippet some context?

Yeah, hospital-acquired infections are huge. In fact, they're a huge reason why we have so many aggressively resistant strains of organisms.

More the other way around.

Widespread over-the-counter antibiotics, over prescription and agricultural use are the reason there are so many resistant organisms. Healthy people with the organisms going into hospitals full of sick people is the reason they get there.

Poor hospital cleaning, high occupancy rates and especially people using keyboards is the reason they are huge.

Re: How the medical supply industry blocks device startups from selling to hospitals

#24

Post by wisty »

rscale wrote: post #12

This caught my eye: Kaiser spokesman Jim Anderson argues that if Shaw’s products didn’t make their way to hospitals it was because of “significant supply issues” on Retractable’s end. He also says they were prone to malfunction and that, in several cases, needles detached and were left “stuck in the arms of patients.” I'm doubtful that a Kaiser spokesman would fabricate these problems, which leads me to believe that…

On the other hand, here's another quote from the article:

"Without a GPO contract, it doesn’t matter how good your product is. Even if I could wave this wand over your body and cure you from cancer, chances are I couldn’t sell it to hospitals"

The core problem is, big manufacturers offer discounts (or bigger kickbacks) for bundling. A niche product is unlikely to succeed, even if it's obviously better. A product that has pros and cons is not going to have a chance.

Also, I'd imagine that a detached needle could be a greater legal liability than an infection. It's easy to prove that a needle detached in a patients arm. It's a lot harder to prove that an infection was caused by a needle without safeguards. "First, do absolutely no harm for which you can be sued for" is not a great creed, but it's one some hospitals will follow.

If you're a supplier, perhaps you're best shot is to license to a big manufacturer, to break in, even if you're capable of producing and marketing your product; because you'll be locked out of the supply stream if you go it alone. That's a pretty sad state of affairs.

Re: How the medical supply industry blocks device startups from selling to hospitals

#25

Post by gcb »

DanBC wrote: post #15

The movie EDIT "puncture" (thanks diek!) is a reasonably entertaining account off the retractable needle. US healthcare (and thus, US patients) may miss out on improved syringes, but I hope they're able to sell many of these to the developing world where needle re-use is a serious problem. Re-using needles when 10% of the population has HIV/AIDS is awful. Not just because you risk transmitting HIV to other people, bu…

Name one regulated market in the us that have fair competition.

Btw. It's not only in the us. Regulation today is the most secure form of monopoly

Re: How the medical supply industry blocks device startups from selling to hospitals

#27

Post by debacle »

tomp wrote: post #18
rscale wrote: post #12

This caught my eye: Kaiser spokesman Jim Anderson argues that if Shaw’s products didn’t make their way to hospitals it was because of “significant supply issues” on Retractable’s end. He also says they were prone to malfunction and that, in several cases, needles detached and were left “stuck in the arms of patients.” I'm doubtful that a Kaiser spokesman would fabricate these problems, which leads me to believe that…

> I'm doubtful that a Kaiser spokesman would fabricate these problems, Why?

Because that's defamation.

Re: How the medical supply industry blocks device startups from selling to hospitals

#29

Post by jeremyarussell »

debacle wrote: post #27
tomp wrote: post #18

Earlier quoted context omitted.

> I'm doubtful that a Kaiser spokesman would fabricate these problems, Why?

Because that's defamation.

Only if they can prove the Kaiser spokesperson was lying.

Re: How the medical supply industry blocks device startups from selling to hospitals

#30

Post by oconnore »

debacle wrote: post #27
tomp wrote: post #18

Earlier quoted context omitted.

> I'm doubtful that a Kaiser spokesman would fabricate these problems, Why?

Because that's defamation.

Do you have any evidence to support them being especially ethical, or is this just a gut reaction?

The facts are that we don't have enough facts, we have an unsubstantiated accusation that should be treated as such.

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