Take Back Control of the OR: How a Rep Replacement Model Succeeds

In a March 20 webinar hosted by Becker's Healthcare, Implant Partners Vice President and Lead Partner Steve Lamb and Partner Alignment Leader Jason Baty explained how an orthopedic rep replacement model can help hospitals take back control of their operating rooms.

"Today's orthopedic delivery model is just unsustainable," said Mr. Lamb. Device companies, sales representatives, and surgeons have faired well; hospitals have not. Budgets have increased with costly implants, and those paying the bills have been on the "short end of the stick" of the orthopedic care delivery model.

"Our goal is to make winners of everyone," said Mr. Lamb. "That's an ambitious statement, but that's what we truly believe our model represents."

Upon considering payer rate declines, payer consolidation, provider integration, physician alignment, and the need for lower cost of care, Implant Partners decided to make a commitment to establishing its own rep replacement company to introduce a disruptive model for implant sales and management. Even for large orthopedic companies, approximately 43 percent of the prices hospitals pay are caught up in the selling, general and administrative costs.

"We believe you deserve the best price regardless of who you are, whether you do 200 joints or 2,000 joints with us," said Mr. Baty.

Less expensive — but still top quality — implants increase the hospital's margin on orthopedic procedures, and the new margin can be split between multiple stakeholders. The system can also provide efficiency for surgeons and the OR team by:

•    Reducing number of trays at the hospital to three double-stacked trays for knees and two double-stacked trays for hips
•    Helping align physicians to standardize implants and reduce physician preference items
•    Implementing the rep replacement staff augmentation

The company also includes operational and financial alignment models to help with supply chain efficiency, staff training and education, and shared savings and bundled payments support. Not all physicians participate in the shared savings programs, but those who do will incorporate and grow these models within their practice.

When assessing whether this is a good fit, a few key goals include:

•    Service line growth
•    Cost containment and margin enhancement
•    Revenue cycle improvement
•    Physician alignment

It takes time and effort to put together alignment and cost-savings arrangements, but the presenters said there are ways to help with the transition. "There are a lot of constituents that are part of this change," says Mr. Baty. "The toughest part is getting someone to pick up the spear and start the initiative."

Download the webinar presentation here.

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Note: View archived webinars by clicking here.

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