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Comparing the Financial Impacts of Single-Use versus Reprocessed

Medical Devices
Scott R. Unger Arizona State University, srunger@asu.edu
Amy E. Landis Arizona State University, amy.landis@asu.edu
Abstract. The World Health Organization (WHO) estimates that the healthcare system
accounts for 15.2% of the United States Gross Domestic Product (WHO, 2008). Given the
magnitude of the healthcare system, more studies are focusing on strategies that may reduce
economic costs to healthcare providers. Many healthcare providers claim that overuse of
single-use medical devices (SUDs) is a significant inefficiency attributed to the healthcare
supply chain model. To better understand and optimize how SUDs are used, this study
explores the financial impacts of reprocessing medical devices by formulating a model that
illustrates the cost differentials of a SUD supply chain in a hypothetical hospital vs. any level of
reprocessing in the same hypothetical hospitals supply chain. Medical device reprocessing is a
standardized and highly monitored form of recycling low-risk medical devices, where certain
devices can be refurbished a number of times before eventually being disposed. Variables
considered for economic impact analysis included: number of devices, shipping costs, and
waste disposal costs. Methodology was structured, such that, number of SUDs equaled the
instances used from reprocessing. Based on their weight, volume, and source
(e.g., operating room, emergency room, and laboratory) shipping and disposal costs were also
incorporated into the analysis. Devices included (but were not limited to): operating room
devices, catheters, compression sleeves, open but unused devices, and pulse oximeters.
Results indicated a logarithmic decrease in cost vs. instances reprocessed. For each device,
one reprocessing instance was associated with over 26% in savings, and five reprocessing
instances (FDA regulatory maximum) was associated with over 56% in savings. On a temporal
basis, a savings of approximately $1.5 million over a time period of 12 months was associated
with the hypothetical hospitals medical device supply chain. Based on the results of this study,
the following characterizations can be made about reprocessing devices in favor of SUDs in
medical device supply chains: positive returns on investment, and low initial capital costs.
Additionally, reprocessing medical devices reduces the amount of disposed/treated medical
waste. The reduction in originally purchased devices was correlated with over 45,000 pounds
of medical waste diverted from landfills and incinerators annually.
References
WHO. (2008). Healthy Hospitals, Healthy Planet, Healthy People: Addressing climate change
in health care settings.
Proceedings of the International Symposium on Sustainable Systems and Technologies (ISSN 2329-9169) is
published annually by the Sustainable Conoscente Network. Melissa Bilec and J un-ki Choi, co-editors.
ISSSTNetwork@gmail.com.
Copyright 2013 by Scott R. Unger and Amy E. Landis. Licensed under CC-BY 3.0.
Cite As:
ISSST, Proc.; Unger, Scott R.; Landis, Amy E. (2014): Comparing the Financial Impacts of Single-Use versus
Reprocessed Medical Devices. http://dx.doi.org/10.6084/m9.figshare.887413

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