Post on 25-Feb-2016
description
transcript
AN OVERVIEW OF REUSABLE SURGICAL TEXTILES IN THE NORTH AMERICANMARKET
Dan SanchezVice PresidentMedcrest Textiles Division Medline Industries, Inc.
Medline History
Textiles is our HeritageStarted almost 100 years ago as a textile companyMedline pioneered many textile innovations that are now widely-used in healthcare today:
○ Colored scrubs, printed patient gowns, knitted sheets
Largest U.S. Provider of Healthcare Textiles in the USAApproximately 36% healthcare market share in the U.S.
Over 19,800 textile customers#1 or #2 healthcare market position in every major category
1997
1999
2001
2003
2005
2007
2009
0500
10001500200025003000350040004500
Sales in Billions$4 Billion in sales6000+ employeesNumber one privately held manufacturer and distributor of health care products in the U.S.40+ years of consecutive growth4th generation family leadership1000 person dedicated sales forceSteady International Growth
Medline Sales History
Historical Development of the Reusable Market Until the 1950’s “Muslin” material
was the accepted reusable surgical material
The belief was it would stop airborne microbes & was a T140, 100% Cotton material
The fabric was white in color and produced glare which tired the surgeons eyes – Medline introduced color into the
Operating Room by coloring the gowns and drapes green to reduce glare
Historical Development of the Reusable Market In 1952 William C. Beck reported “muslin
material may have been considered an acceptable bacteriological barrier when dry, but lost whatever barrier capability it possessed once it became wet”.
New fabrics were developed with a higher thread count and chemical finishes such as “Quarpel” were applied
However not much changed at the hospital level for about a decade as they continued to use Muslin fabrics
At the same time disposable fabrics were being developed and their use began to increase
Historical Development of the Reusable Market In the late 1980’s Reusable Surgical
Textiles finally improved substantially100% polyester materials were
developed that provided a very good barrier to fluids and strike through
In the early 1990’s Gore was introduced as a Liquid Proof and Breathable fabric for surgeons gowns
Unfortunately the barn door was left open and the horse was gone!
Disposable Surgical Textiles During the 70’s and 80’s the use of
disposable surgical textiles surged higherThe U.S. government reimbursed hospitals
for single use items on a cost plus basis○ Hospitals used disposables to generate
revenue○ Reusable Surgical Textiles were not
reimbursableThe technology for disposables was better
than the reusable's
Organisation of The Reusable Market As of 2004, through a survey it was estimated
disposables had captured 84% of the market for surgical textiles in the USA
Disposables promised the product would be perfect every time
Whereas, with reusable's you would need to have faith the laundry had processed, inspected and repaired the textile item appropriatelySadly, many laundries were not meeting
expectations
Organisation of The Reusable Market U.S. ~ 20 Million Surgical Procedures
AnnuallyGowns
○ ~ 85% Disposable – 15% Reusable○ Primarily Level 3 and 4 (using AAMI Guidelines)
Drapes○ ~ 85% Disposable Table Covers and Mayo
Stand Covers – 15% Reusable○ ~ 95% Disposable Patient Drapes – 5%
Reusable
Organisation of The Reusable Market Canada ~ 2 Million Surgical Procedures
Annually Gowns
60% Disposable – 40% ReusableReusable's are ~ 80% Level 4Balance is a mix of Level 3 and Level 2Disposables are ~ 75% Level 3, 25% Level 4
Drapes70% Disposable – 30% Reusable
Organisation of The Reusable Market Mexico – number of procedures
unknown Gowns and Drapes are about 60%
Reusable~ 50/50 split between cotton and microfiberRapidly transitioning to disposable gowns
and drapes
Medline’s Position In The Reusable Market USA
31% Market SharePrimarily Gowns, Wrappers, Table Covers and
Mayo Stands Canada
30% Market SharePrimarily Gowns, Wrappers, Table Covers and
Mayo Stands Mexico
Very little Reusable sales
Medline’s Position In The Reusable Market Complete Delivery on a Rental Basis
Sterile Recoveries○ Can cover about 70% of the USA○ About $100 M in revenue
Comprised of reusable's textiles, stainless steel and disposable sterile packs
Primarily Level 4 and 3; some level 2
Other Laundries with Sterilization Capability○ HLS – Illinois○ MUHL – Wisconsin○ Comtex – Ohio○ Crown Laundry – Alabama○ Mayflower - Maryland
Promotion of Reusable's
Creating a sustainability catalog that draws from every division (20) within Medline
Providing support to build Pack Rooms and provide guidance in meeting FDA regulations within laundries
Dedicated Textile Sales Representatives to sell textiles in the USA and Canada
Implementing “Hybrid” programs to provide a mix of Reusable's and Disposables – this will increase our reusable sales by 10 to 30%
Promotion of Reusable's Continue to educate on the AAMI
Guidelines:
The Position of Reusable's vs. Disposables Reusable Surgical Textiles have the
ability to provide a cost effective alternative to Disposables
The U.S. Government is reducing its funding for hospitalsHospitals must find ways to cut cost and
save moneyAdding a pack room to the laundry and
converting to reusable's is one potential savings
The Position of Reusable's vs. DisposablesCost Savings Analysis:
Product Gown pack cost Gowns used per year* Annual Spend
XL Ultra Level 3 - KC 95121 $2.57 12,900 $33,153
XL Fabric Reinforced (no level) $2.71 2,556 $6,927
Total $40,080
Medline Reusable Level 3 $1.93 12,900 $24,883
Medline Reusable Level 4 $2.67 2556 $6,826
Total $31,710
Annual Savings moving to Reusable Gowns $8,370% Savings moving to Reusable Gowns 20.9%
The Position of Reusable's vs. Disposables Reusable's are also primarily synthetic
and do not produce lint which coincides with the objective of AORN in the USA and ORNAC in Canada
Many hospitals have established “Green” committees to try and become more environmentally friendlyWe must support their efforts with
documentation on our sustainable products
Summary Reusable Textiles have dramatically changed
in the past 100 years from Muslin to high tech synthetic materials
Disposables filled the vacuum we provided when our product did not have the required barrier properties
Government helped to reinforce the transition to disposables
We must prove our products are cost effective and sustainable to win over new customers
Thank You!