Becker's ASC Review

8 EXECUTIVE BRIEFING EXECUTIVE BRIEFING 1 'Peace of mind' for ASCs: How certified pre-owned equipment drives quality and savings A mbulatory surgery centers across the U.S. are facing challenging market conditions — provider shortages, rising costs and wages, declining reimbursements and more. Prudent financial strategies are increasingly important. In particular, ASC facilities that perform gastrointestinal procedures are looking at how using certified pre-owned instruments like endoscopes can help stretch their budgets while supplementing their equipment inventory, allowing for greater flexibility to meet patient scheduling needs. To learn more about why ASCs may be choosing to buy certified pre-owned (CPO) equipment, Becker's Healthcare spoke with three medical device industry leaders at Olympus that have an understanding of ASCs' challenges and opportunities: • Philip Doyle, Executive Director of Marketing, Endoscopy Capital & Strategic Marketing, Olympus Corporation of the Americas • David Hagen, Director of Quality, Olympus Surgical Technologies of America • Manish Singh, VP., Business Unit Leader, Olympus Surgical Technologies of America Olympus® CPO endoscopy equipment offers quality product at affordable prices While endoscopy equipment is durable and can be used for years, it represents a substantial investment for ASCs. Buying new equipment is one option, but purchasing pre-owned equipment is an alternative worth considering as it can provide an economic solution. However, not all pre-owned equipment is created equal. There are differences between pre-owned endoscopy equipment bought from a third-party vendor and CPO equipment purchased from an original equipment manufacturer (OEM), such as Olympus. One of the most important distinctions when working with an OEM is that their repair methods and the facilities and controls used for servicing equipment are federally regulated. OEMs methods used and the facilities and controls used for servicing equipment must comply with the federally regulated Quality System Regulations, which require that repair or refurbishment returns the instrument to the manufacturer's original specifications. In contrast, third-party sellers are not necessarily regulated and may only be returning a refurbished item to a reasonable approximation of the manufacturer's specifications. "Third-party repair companies and resellers don't have access to new OEM parts," Mr. Doyle said. "The parts they use are copies or as close to a substitute as they can find. In some cases, parts are borrowed from other scopes acquired on the open market. As a buyer, you don't know whether you are getting the same quality, durability, fit and performance as you would get from OEM parts." When Olympus prepares a CPO endoscope, every patient- contacting portion of the equipment is changed out. The original parts are removed and replaced with brand new OEM parts. In addition, from a cosmetic standpoint, the acceptable level of scratches and defects for Olympus CPO products is very low. "If a customer evaluates the quality of an Olympus CPO endoscope, it will look and perform like a new product," Mr. Hagen said. When it comes to medical equipment like endoscopes, reprocessing validation is critical. Olympus follows a rigorous testing program for CPO endoscopes to validate equipment compatibility with specific reprocessing methods and agents, as well as the efficacy of those scope reprocessing methods. Olympus CPO products have already been validated by many automated endoscope reprocessors. "Before buying a third-party pre-owned scope, ASCs should check with their automated endoscope reprocessor to ensure that the equipment can be reprocessed effectively," Mr. Singh said. Mr. Doyle agreed, noting additional considerations. "Automated endoscope reprocessors validate their reprocessing hookups and methods with OEM scopes," he said. "The modifications that may exist in a third-party repaired scope may or may not lead to the same outcome as what was originally validated." Olympus CPO endoscopy equipment can be a financially attractive alternative for ASCs, as well. The cost of CPO equipment compared to new equipment can help organizations meet their financial targets, while investing in capital equipment. "Although the cost savings will vary based on the size of the purchase and the combination of products purchased, it's not uncommon to see double-digit savings when buying CPO rather than new," Mr. Doyle said. "Economically, that's an important factor to consider." Olympus® CPO endoscopy equipment warranty The warranties provided by Olympus for CPO and new endoscopes purchased from Olympus are identical — both categories of products include a one-year warranty period from the invoice date. "The warranty covers defects in parts and workmanship under normal use," Mr. Hagen said. "That applies to workmanship at the original Japanese factory that manufactured a new endoscope, as well as the workmanship at the repair center for CPO products." He added that the company's U.S. repair centers are located in San Jose, Calif. and Bartlett, Tenn. Mr. Doyle noted how Olympus' confidence in the quality of the refurbishment process for CPO products enables the company to offer the same warranty provided for purchases of new inventory. It's also important for ASCs to keep in mind that buying a CPO product doesn't mean they have to sacrifice access to technology and product advancements. It's frequently the case that Olympus CPO product offerings include the newest models. 2024_June Olympus EB_v2.indd 2 2024_June Olympus EB_v2.indd 2 21/06/2024 17:11 21/06/2024 17:11

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