CA Endoscopy Group Finds Cost Savings by Manufacturing Own Traps and Bite Blocks

Dan Luba, MD, is part of the nine-physician Monterey (Calif.) Bay GI Consultants Medical Group. The group operates the four-room Monterey Bay Endoscopy Center. When the group became frustrated with the increasing cost of polyp traps and bite blocks, two items used with great frequency by the group, it took the unusual step of designing and patenting its own trap and bite block, he says. The group now manufactures and sells these traps and bite blocks, in addition to using them in its endoscopy center.

 

Dr. Luba discusses who was involved in the development, what motivated the group to think outside the box to reduce its costs and the cost savings it has achieved.

 

Q: Who was involved in the designing and manufacturing of the traps and bite blocks?

 

Dr. Dan Luba: We tried to put together an innovative team of people with complementary areas of expertise. One member of our team is a nationally recognized invasive endoscopist. Another member is a mechanical engineer who does computer-aided design (CAD) drawings and can make prototypes. He is also experienced with different materials and their respective properties. There are also two previous GI innovators, a laparoscopic surgeon and someone with a GI financial and managerial background.

 

Q: How did you go about designing and manufacturing these devices?

 

DL: The actual final products went through a lengthy creative process. After several meetings and selecting the specific products we wanted to make, the following steps were taken: Our CAD person took our hand renditions and comments to produce some mock-up drawings that the group further refined. Patient benefit, form, function and production at an affordable price were all criteria that needed to be met. We then made some prototypes which were refined and which we deemed an excellent end product. We then had molds made and ran a small production from which we finalized our molds and products. The FDA paperwork was filed, as well as our patent applications. Production was started after we received an import license. We obtained liability insurance and began to use and sell our products.

 

Q: What made your group decide to pursue this venture?

 

DL: There were several factors that influenced us to pursue this venture. Prices for medical supplies were increasing, while reimbursements were decreasing. We thought that we could improve on the products we were using and at the same time decrease our costs. We use about 3,000 polyp traps per year, and the thought of paying $30,000 a year for polyp traps seemed outrageous. We looked at products in our GI practice that had a small, but recurrent impact on our bottom line. We identified two products that we thought we could improve upon and produce less expensively. Our bite block has an attachable suction catheter that allows constant suction throughout the procedure, without a nurse holding the wand. The suction catheter is also detachable so that directed suction can be utilized if needed.

 

We designed our trap to minimize the possibility of losing a specimen. The trap that we previously used would occasionally allow small specimens to pass through the filter and get lost. Our trap employs two filters to prevent loss of tissue specimens. The filters are removable and easy to use. We are able to manufacture and sell both of these products for considerably less than other products on the market.

 

Q: What cost savings has your center seen by taking this creative approach?

 

DL: Many endoscopy centers try to save money by cutting back on big ticket items, which is certainly very important. However, over time, small savings can add up to a lot of money. We have been able to save about $1.50 per bite block and suction catheter. Our old traps now cost $10.50 a piece. Ours sell for $3.25. We use about 1,000 bite blocks a year and 3,000 traps per year. Over the course of one year we save $1,500 on bite blocks and $20,000 on traps. Over the course of 10 years we will save over $215,000. These small recurrent costs add up!

 

Q: Are these traps and bite blocks available for purchase by other providers?

 

DL: The traps and bite blocks are available for sale at montereyinnovativeproducts@yahoo.com and from McKesson. You can learn more about them at montereyinnovativeproducts.com or by calling (831) 277-3353.

 

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