Maximize SUD Reprocessing Savings and Sustainability

Most hospitals reprocess single-use devices (SUDs) to maximize savings and divert medical waste from landfills. Some device companies bundle new and reprocessed SUDs as ‘comprehensive or circular device programs,’ claiming to offer consistent, predictable supply and pricing. However, these bundled programs can negatively impact your savings and waste reduction potential.

The Facts

Maximum SUD reprocessing savings are achieved by minimizing the number of new devices purchased.

According to a recent CleanMed session, health systems participating in comprehensive or circular device programs may only purchase 20% reprocessed devices, compared to 50% of some Association of Medical Device Reprocessors (AMDR) member hospital partners.

Reprocessing programs allow hospitals to maintain more clinical autonomy and control over their device mix, resulting in meaningful savings by partnering with multiple vendors rather than only one manufacturer.

90% of Practice Greenhealth members surveyed plan to expand their SUD reprocessing programs, but some say vendor pushback is a challenge.

AMDR member companies will partner with you to ease the burden of implementation, while maintaining focus on your goal to maximize savings.

Watch for Anti-Reprocessing Contracting Practices

Original equipment manufacturers (OEMs) are also deploying other aggressive sales tactics to protect SUD revenue.

Some OEM contracts contain intentionally ambiguous or complicated terms that limit hospital savings by prohibiting or restricting a hospital’s right to purchase reprocessed SUDs.

For more details, download our Practical Contracting Considerations Sheet.

Healthcare Facility Testimonials

After losing $355K, Duke University Medical Center will never sign an OEM contract that restricts the purchase of reprocessed SUDs again.

"Don't let vendors control your SUD assets or interfere with your ability to leverage those assets to their full potential to reach your financial and environmental objectives."- Bill Tousey, RN MBA, Executive Vice President, Cooperative Services of Florida

St. Joseph's Health System takes a hard line with vendors: "We're upfront with OEMs, saying we are a reprocessing organization and we expect you to respect that."- James McManus, former VP of Finance

What Your Organization Can Do:
Contracting Practices

1

Educate

Notify contracting personnel to be on alert for contract clauses with terms that prohibit your right to purchase reprocessed SUDs. View types of clauses in our Practical Contracting Considerations Sheet.

2

Pause & Review

Standardize the review of all contracts for language that restricts reprocessing in any way.

3

Evaluate

If you find clauses that prohibit your right to reprocess, assess the impact on your organization. Short-term price discounts don’t always yield the best long-term benefit. As Duke UMC learned, discounts may be moot if you lose your reprocessing savings.

4

Seek Support

As with any potentially anti-competitive matter, alert your legal counsel and risk management department, then notify your reprocessing partner.

5

Push Back

Tell OEM sales reps your hospital is committed to purchasing both OEM devices and reprocessed devices. Make it clear that any interference in the hospital’s reprocessing program by OEMs will not be tolerated and may result in a loss of hospital privileges, as St. Joseph Health System did.

Watch for Deceitful Technology "Upgrades"

Some OEMs are offering "new" versions of their devices with incremental technology upgrades, including microchips designed to prevent or delay reprocessing, that offer no known technological advantage to healthcare providers or patients. Use of these technologies could mean loss of valuable reprocessing savings, which drives up cost and increases landfill waste. Iterative technology that offers little to no positive impact on patient outcomes and likely costs more to purchase new doesn’t support the principles of value-based purchasing.

For information on specific products that may contain incremental "upgrades," contact your reprocessing partner.

What Your Organization Can Do:
Deceitful Technology Upgrades

1

Pause

Identify if the new device is intended to replace a reprocessable device. If yes, consider talking with your reprocessing partner.

2

Weigh the Benefit

Consider whether the technology’s incremental changes are more valuable than your reprocessing savings.

If you have questions or want to share individual company best practices you’ve deployed to protect reprocessing savings, contact Dan Vukelich, President of AMDR.

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