Cost Benefit Analysis

Using SteriTite® Containers&

MediTray® Inserts

Copyright 2003, Revised 2013

Sterilization Trends

• Higher value instrumentation– More complex devices, including

endoscopes, power equipment and robotics

• Inventory control & materials planning• Reduction in labor• Reduction of costs in Central Processing• Rapid turns and volume

Industry Trends• Muslin Wrap to Disposable Wrap to

Sealed Containers• EO Gas to STERRAD Sterilization• Single Use Devices to Re-usable

Devices• Plastic Custom Trays to Aluminum

Trays and Sealed Containers• Temperature and moisture sensitive

devices, new sterilization modalities and packaging compatibility.

Benefits• Case Medical Universal Containers

– Using one case for all saves inventory costs – Can protect valuable instrumentation– Contributes to surgeon satisfaction– Compatible with all devices and sterilization

modalities

• Container organizer systems will reduce instrument loss and damage and be seen as a value by the customer.– Reusable components are cost effective.– Instrument protection reduces costs for repair and

replacement.

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SteriTite®, the Universal Container

• Compatible with every major sterilization method including STERRAD® , V-Pro, and EO

• Filter-less option for “Flash”

• High durability with corrosion resistant seal

• Flexible design reduces affiliate costs and protects devices

• Ideal for containerizing loaners

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Utilization

Operating Room Flash: pre-vac &

gravity

Central Processing

Steam: pre-vac & gravity, EO,

STERRAD

Instrument SafetyPersonalized

Organized

Inventory SavingsReduced Costs per Use

Productivity IncreaseReduced Labor

Reduced DisposablesQuicker Turns

Reduced Reprocessing

Customer Gains Value• In steam sterilization

– Instrument protection– Event related storage– Cost savings in labor and processing

• In EO/STERRAD® and V-Pro® Sterilization– Reduced instrument loss, damage– Reduced handling costs– Universal container that can go to third-party

processors and/or STERRAD® Processing– Ability to sterilize flexible endoscopes

Savings Over the Other Brand

• With 1/3 more interior volume, the number of containers needed is reduced.

• Lower profile container reduces weight and addresses ergonomic issues.

• Ability to stack inner trays within container keeps the set together for surgery and reduces inventory/shelf space.

• Ability to stack containers in the autoclave.– Saves energy and processing costs.

Savings Over the Other Brand

• Sealed immediate use (flash) container reduces infection rates from cross contamination and staff injuries due to burns.

• Durable construction increases useful life of product and avoids added expense of repair or replacement.

• Corrosion-resistant, anodized seal provides 10x more useful life and reduces surgical site infections from galvanic reaction.

• Unconditional warranty for manufacturer’s defects avoids service charges.

Savings Over the Other Brand• SteriTite for multiple methods of

sterilization avoids unnecessary inventory duplication.– Avoid multiple wrapped trays or different

containers for each process or set.

• SteriTite cleared for 35 lbs. total weight.– 22 lbs. of instruments and all types of

devices reduces stock.

• Dry loads avoid reprocessing costs.

Savings Over the Other Brand

• Utilizing a lower profile container addresses ergonomic issues and reduces total weight.

• Interchangeable components reduces stock.

• Off-set filter retention plate:– Reduces time needed to inspect filter

integrity in the OR.– Eliminates need for a secondary lid, which

adds cost and weight to container.

The SteriTite® Container System on a Per Cycle

Basis• Customer pays a similar price on a

per use basis as cost for wrap– Customer saves on wrap, tape,

absorbent liners, and other accessories. – Avoids damage and reprocessing costs.

• Lease or pay as you go option.• Expense avoids a capital purchase.• Utilize and reduce budget for wrap.

Item Cost Quantity Total

Disposable Wrap 1.50 2 3.00

Autoclave Tape 0.10 1 0.10

Labor (per minute) 0.24 3 0.72

Disposal Cost 0.09 2 0.18

Reprocessing 0.50 0.50

Instrumentdamage reserve

0.30 0.30

Total wrap per use 4.80

Additional Costs to Consider:Cost of tray linersCost of peel pouchesCost of corner protectorsCost of dust coversRe-sterilization due to tears

Disposable Wrap System Costs Per Use:

Linen Wrap Cost Per Use

Item Cost Quantity Total

Amortized cost of linen wrap 0.58 2 1.16

Autoclave Tape 0.10 1 0.10

Washing, patching, delintingand preparation of wrap

1.20 1.20

Reprocessing due to shelf life 0.50 0.50

Instrument damage reserve(2% / 200 cycles per year)

0.30 0.30

Total cost for linen wrap 3.26

Additional Costs Include:Labor for inspecting wrapRe-sterilization due to tearsPoor barrier for sterility maintenanceContributes to surgical site infections

Savings Include:Eliminates Rips and Tears80% Disposable Cost Savings28% Lower Labor Costs (1/3 of time to wrap)Greatly Reduced Reprocessing

Item Cost Quantity Total

Disposable Filters* 0.10 3 0.30

Disposable Seals 0.16 2 0.32

Labor (Per Minute) 0.24 1.0 0.24

Container cost peruse **

1.30 1 1.30

Total Container per use 2.16

SteriTite® Sealed Container Costs Per Use:

* Average number of filters used in perforated bottom universal container.

** The cost per use for the container amortized over a 3 year term.

Pricing and Value Strategy

• Value per cycle to customer =cost of inventory for duplicate containers +

cost of inventory for multiple wrapped trays + cost of wrap or cost of washing linen +

cost of inspection/repair/or multiple wrap in linen due to damage of linen +

cost of disposal of single use wraps +reprocessing costs due to short shelf life +

hidden cost of instrument damage +hidden cost of instrument loss +

personal pride in instrument

• Save a minimum of 20% over competitive brands by eliminating the cost of additional containers for low temperature sterilization modalities or sealed immediate-use sterilization.

• Reduce container inventory by 1/3 with SteriTite® containers which provide added internal space and stacking capability.

• Save 25% on energy and reprocessing costs with stackable, low profile containers in the autoclave.

Additional Savings

• Save an additional 25% in repair and sharpening costs using MediTray® inserts.

• Save $3,600 a year adapting an event-related sterility policy using SteriTite® containers.

• Save up to $200.00 per container in refurbishing costs.

Additional Savings

HOSPITALEXPENSE

Sharpen Repair Savings*

Hospital A$151,494

$13,1008%

$138,39492%

$37,874

Hospital B$210,470

$38,30018%

$172,17082%

$52,618

Hospital C$251,134

$100,69140%

$154,44360%

$62,684

Reduce the Cost of Instrument Repair with MediTray® Protective InsertsInstrument Repair & Sharpening Expense

Reduce other hidden costs:Labor costs searching for replacement instrumentsExcess inventory and duplicationCost of delay and lost billingsCost of OR suite and staff time and laborRe-sterilization and reprocessing

Note: Above data based on information provided by hospitals in PA, TX and FL

Reduce The Cost Of Instrument Repair With MediTray® Endo Trays and Inserts

Scope Repair and Sharpening Expense

Reduce other hidden costs:

Increase in laparoscopic procedures along with rising expense for repair as well as replacement costs of

scopes and endoscopic instruments.

Expense Sharpen Repair Savings*

Hospital X$192,000

$17,0008%

$175,00092%

$48,000

Hospital Y$130,000

$20,00015%

$110,00085%

$32,500

*(25% savings by reducing repair and sharpening costs based on using MediTray product in FL, PA)

Based on labor and repair cost savings, SteriTite® containers can fully justify initial investment within one to two years.

The Value of SteriTite® Containers and MediTray® Inserts

SteriTite® sealed containers and MediTray® protective inserts provide a simple, cost-effective system for the sterilization, transport and storage of operating room instruments.

Contact your Case Medical, Inc.® representative or visit http://www.casemed.com/ for more information about the entire MediTray® line of sterilization products.

Thank you