What to do with all those legacy medical devices? They still have value and hospitals invested a lot of money in them so simply throwing these legacy devices away doesn't seem fiscally responsible when another facility may be able to use it and the seller can recover some of their investment. Now, an online marketplace for healthcare providers in Colorado is open to buy, sell or trade devices and it is proving to be a money-saving model.
The Colorado Hospital Association formed a partnership last January with H-Source, an online marketplace for buying and selling devices, pharmaceuticals, capital equipment and supplies. In recent months, transactions between association members have steadily increased, resulting in greater cost recovery and savings for Colorado hospitals, the association reported.
Based on initial numbers, the association said that participating hospitals would have needed to generate approximately $8.4 million dollars in new revenue in order to realize the same dollar value in recovered cost from H-Source transactions.
"Our members deal with many challenges while controlling costs, reducing waste and implementing sustainability strategies," said Michael Scott, Vice President of Shared Services at the Colorado Hospital Association. "They look for resources to help modify their hospital's cost structures. H-Source is a resource providing members that opportunity to reduce and recover expenses."
The Colorado Hospital Association represents more than 100 hospitals and health systems throughout Colorado. Many early adopters of the online marketplace include several health systems, larger facilities located in the Denver metro area, and facilities in rural areas across the state.
H-Source president Murray Walden said that what HCA accomplished in the first year is only the beginning.
"I believe we are just scratching the surface of our potential for Colorado hospitals to recover costs, reduce expenditures and decrease waste," Walden said.