Tuesday, April 10, 2018

Internal Habits Are Hard To Break

Adviser: A person who gives advice in a particular field
~Oxford Dictionary~

Most companies in used medical device space operate as brokers, dealers or remarketers. 

They buy, sell, broker or market used medical devices.

It's a sensible business model that’s practiced in many industries.

This model, however, does not solve an internal problem many hospitals have related to used medical devices.  

As devices age and get replaced, hospitals often

  • Practice "out of sight, out of mind" approach where devices are stored until they become obsolete and require liquidation.
  •  Trade-in below market value. A popular method where supplier of the new device offers “nominal value” for the old device. Works just like trading-in an old car for a new one. Hospitals give up revenue in exchange for convenience.
  •  Sell to vendors who email them proposals that read "Sell us your equipment. We buy all equipment. We beat any offer. We pay top dollar!" Every proposal reads the same.   

And, every Department within the same hospital, has their own preferred way of handling devices they no longer need. 
Rather than taking advantage of this disorder, I've always advocated for hospitals to address this problem internally.
Until each facility and Department follows the same protocol, hospitals will lose revenue and never capture the true cost of equipment life-cycle.
It has become my mission and passion to help hospitals fix their internal process. And, to educate them about used medical device industry so they can make informed decisions. 
Reselling used medical devices became a byproduct of advice and recommendations that resulted in consistent revenue for our clients. 
In my last post, I offered to share 5 reasons that make EcoMed an adviser rather than a traditional broker, dealer or remarketer. 

With our mission to improve the internal process being Ground Zero, here are 5 reasons that set us apart:
Reason #1. Sales, Sales, Sales
Our expertise is managing resale of used devices. We refrain from offering hospitals products to purchase.
Because we prefer to represent best interests of facilities and ensure transparency.
Reason #2. Please don’t ask to buy your equipment
Buying devices from hospitals will put us in the same category as other brokers/dealers and violate our principle of transparency.
It also means that unless there's a buyer for your device right now, you will receive a low offer because of high acquisition costs (transportation, storage, refurbishing, uncertainty if/when the devices will resell and insurance just to name a few).
Reason #3. Remarketing is insufficient
Unlike remarketers whose objective is to market device until there’s an offer, we follow a thorough discovery process where we collect data from Department, service engineers, OEM and FDA if applicable.
To resell unique devices, we partner with leasing companies, medical associations and technology startups all over the globe because traditional resale methods are not sufficient.
Our marketing plan and selling strategy are determined by device type and not online platform with lowest fees.
Reason #4: Complimentary Services
Routine inventory of devices removed from clinical use costs our clients… $0.
Clients who need appraisals pay... $0.
Recommendations on what to do with devices removed from clinical use - sell? auction? trade-in? recycle? We analyze, our clients pay... $0.
Reason #5: Compliance is Everything
Are you sure device sold from your facility will not end-up in one of the countries with trade sanctions?   
Will your facility be protected if sold device caused injury or death to a future patient?
To protect your facility, it is imperative to have the right paperwork in place and we make sure it is.
In summary, there are several ways hospitals can handle used medical devices. 
Despite their preferred method, it all starts with internal organization, understanding of used device market and what each vendor who deals with used devices will offer your facility.

What are your thoughts on fixing internal process? Do you think it's attainable?  Will it improve efficiency and increase revenue generated from sale of used medical device?
EcoMed works exclusively with hospitals to resell medical devices removed from clinical use. Even if your hospital has another service provider, you may still have questions, need validation, or resources. Contact us with any questions you may have about reselling your medical devices. 
To learn more about benefits of being an EcoMed client, send us an email or visit www.ecomedhtm.com.

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