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TS03 Inc Trust Units TSTIF



GREY:TSTIF - Post by User

Comment by Drrwongon Jan 09, 2019 3:15pm
306 Views
Post# 29208165

RE:VP4 Superior?

RE:VP4 Superior?I had a chance to talk to Jenni Gibbs from Altru right after they went live with their ERCP reprocessing with VP4:  she said they did a thorough cost study analysis using CensiTrac that tracks everything including labor costs--they found VP4 to be 30-60% cheaper per instrument than their previous low temp sterilizer.  This is purely on costs, and has nothing to do with ability to sterilize complex scopes or any other equipment.

I believe this 30-60% cost saving number is even better now because:
-  Altru installed a large oxygen generator that makes enough oxygen for 3 VP4s, so our new oxygen generator would be even more cost effective (especially without the huge Getinge markup)
-  The upfront costs for Altru for their VP4 machines were inline with the competition (i.e.: $120-130k), as that was the price Getinge was charging.  We are now discounting our machines to roughly $100k due to our low cost base from the Getinge break-up.  So a lower upfront cost means more cost savings
-  Recall there is no need to select which cycle to run for the VP4, as it automatically adjusts for the load it is sterilizing.  By eliminating human errors (i.e.: choosing the wrong cycle that result in an unsatisfactory outcome) and the need to run the load again will help save money also

This cost per instrument advantage was never highlighted by Getinge in their marketing effort throughout its 2.5 years, as they focused mostly on the convenience of the 1-cycle.  With RR now in charge, this cost advantage is the FIRST message our sales force want to get across to hospital customers.  Only after this cost angle is well understood would they then focus on things like complex endoscopes and robotic arms, etc.


I truly believe the VP4 is going to benefit every stakeholder within the healthcare chain:  from the payers, hospitals, patients, doctors...with the exception of our competitors (Steris, Fortive) and litigation lawyers (on contamination cases).  I feel this investment is doing the "right thing" for real-life people...
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