By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Sales Reps Not Included: On e-Commerce Site, Device Firms Discount Routinely Used Implants
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Technology > Medical Devices > Sales Reps Not Included: On e-Commerce Site, Device Firms Discount Routinely Used Implants
BusinessMedical Devices

Sales Reps Not Included: On e-Commerce Site, Device Firms Discount Routinely Used Implants

Deanna Pogorelc
Deanna Pogorelc
Share
5 Min Read
SHARE

Shopping trolley on button of computer keyboard

Shopping trolley on button of computer keyboard

The movement toward price transparency that’s sweeping various parts of the healthcare system has now reached medical device sales via a new e-commerce startup that connects medical device companies with health systems looking to purchase stable implant technologies.

For the founders of MedPassage, it was a report issued by the Government Accountability Office in 2012 that really moved them to action. The report suggested that confidentiality clauses and a lack of price transparency in sales of implantable medical devices was driving up costs for providers.

More Read

3 Universal Factors Hospital Administrations Need to Keep Nurses Satisfied
Do Appointment Reminders Work?
Social Media Optimization for Mobile Devices: What Healthcare Marketers Need to Know
The Future of Innovation in Health Care
Medical Director: Characteristics of Success

Co-founders Mike Biselli and Gavin Fabian had met around the time of the financial collapse of 2008 while working together at medical device company NuVasive. “We saw the domino effect happening a year and a half later, where the dynamics were changing for everyone,” Biselli said. “From a physician’s perspective, reimbursement rates were falling off the table, operating costs went up and the cost of devices was through the roof.”

The pair wanted to create a solution that encouraged price transparency while also eliminating some of what they considered excess costs in the process – namely, eliminating costs associated with sales support for well-established medical devices used in routine procedures.

When they asked professional colleagues who worked in medical centers if they would forgo sales support in certain procedures in exchange for lower prices, the response was a resounding yes. In fact, some companies are now doing this on their own: Earlier this year, Wright Medical launched Wright Direct, a program that took sales reps out of the equation for a certain portion of its business.

So in 2012, Bisellie and Fabian created MedPassage. On the online platform, medical centers sign up for free and can explore member medical device companies’ products and prices by specialty.

On the other side of the platform, medical device companies list their products at discounted prices (which they set) that don’t include support services. Biselli, who’s now chief marketing officer, said he’d be the first one to tell you that this is not a place for cutting edge technologies. It’s for tried and true devices, like shoulder anchors, ACL screws and cervical cages, where physicians have performed the procedure many times and the chance of needing OR support is slim.

Some device companies offer sales support as a line item, Biselli added, or as an add-on for the first few cases of device use.

The device companies can also control which provider markets can view certain products. “If a device company has a sales rep in a certain market and doesn’t want to affect his business, they can turn off coverage there and turn on coverage where they don’t have any,” Biselli said. They also can’t see what other companies are using the platform or what they are charging for the similar products.

Devices are ordered, managed and tracked through a suite of tools within MedPassage’s platform, but the actual payment is issued directly between the medical center and device companies. When a purchase is made, MedPassage takes a commission from the device companies. Those companies can also pay small transaction fees if they want to bring existing customers onto the platform, to streamline their sales process and account management, said Product Manager Jake Sager.

It’s a similar idea employed by Pharmly, a startup MedCity News profiled last week that connects providers and pharmaceutical wholesalers, except that Pharmly facilitates bidding, rather than straight price transparency. And both companies are part of a bigger movement to use e-commerce to healthcare delivery.

As of now, the company has customers signed up on both sides of the platform. Biselli declined to name any of the medical device makers on board but said they range from small to large-size companies. It’s also continuing to modify the platform based on feedback from those initial customers. Meanwhile, the company is raising a bridge round and looking toward a proper Series A in early 2014.

TAGGED:health start-ups!
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Epidemiological Health Benefits
Personal and Epidemiological Health Benefits of Blood Pressure Management
Health
October 13, 2025
Traumatic Brain Injuries
Understanding Traumatic Brain Injuries: What Families Need to Know
Policy & Law
October 10, 2025
Remote Monitoring touchpoints
Remote Monitoring Touchpoints Patients Will Actually Follow
Technology
October 9, 2025
dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025

You Might also Like

Speaking Up for Patient Safety | Healthcare Career Resources Blog
Hospital AdministrationMedical Ethics

Speaking Up for Patient Safety

July 6, 2016

Top 10 Reminders to Healthcare (and All) Startups

May 16, 2013

Clinics, Free Clinics, and the Future Uninsured – Interview with Erika Viccellio

March 31, 2011

Dying in America? Bureaucrats Care

October 16, 2014
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?