Becker's Hospital Review

51 Executive Briefing: Device Supply Chain Management Surgeon responses Even surgeons skeptical about a different device business mod- el embraced the rep-replacement approach once the transition took place, Mr. Lamb says. Hospitals that have truly partnered to share savings found themselves with satisfied surgeons who were able to use the Implant Partners devices for the vast major- ity of their cases. The devices used by Implant Partners are the same Wright Medi- cal Group hip and knee implants many physicians currently use; the savings comes from the distribution model, not a differently- manufactured device. Because of such, Mr. Lamb says, "many surgeons that haven't used our products before have been overly surprised at our product and instrument design and quality." One physician asked by the company for feedback reported he could use the Implant Partners model 70 to 80 percent of the time, and that it works well for "bread and butter" patients — those pri- mary patients without severe deformity. Most physicians require additional operating room assistance for more sophisticated cas- es. In these cases, they can either get help from Implant Partners or from their traditional implant provider. Why change is imminent Implant Partners' mantra is "clinical success without the excess," and industry insiders, hospitals and surgeons believe the health- care industry climate is such where extreme measures — such as partnerships between hospitals and implant companies — will be needed to survive and thrive. CMS' new rates for 2014 hip and knee reimbursements have dropped from $1,600 to $1,350. Such pricing is one of many in- centives for hospitals and surgeons to change the way they ac- quire implant devices. Mr. Lamb says it's not far off on the horizon when payers will cut one check for a hip or knee replacement, similar to the BPCI initia- tives that started Jan. 1. Health systems must act now to preserve their savings and retain their ability to sustainably perform joint replacement surgeries. "We believe our model will fundamentally change the industry — certainly in the preference items area," Mr. Lamb says. "Put simply, the current way of doing things is just unsustainable over the long-term, especially with bundled payment arrangements increasing rapidly. Our model of providing clinical, operational and economic alignment helps guide our partners through this essential change management process and allows all healthcare stakeholders to win — surgeons, hospitals, payers and patients included." n Implant Partners is a fully owned subsidiary of MicroPort Orthopedics, a global orthopedic implant provider with more than 60 years of experience making high quality joint replacement products. Implant Partners offers primary hip and knee systems through a rep replacement business model at prices that are 40-70% lower than average. In addition, we offer clinical, operational, and economic alignment services that help hospitals streamline processes and take control of their ORs. In short, we enable clinical success without the excess. "CMS' new rates for 2014 hip and knee reimbursements have dropped from $1,600 to $1,350. Such pricing is one of the many incentives for hospitals and surgeons to change the way they acquire implant devices."

• Cover