Wednesday April 24, 2013 0 comments
By Steve Porter
DENVER - As Obamacare continues to unfold and health care reimbursements tighten under the Affordable Health Care Act of 2009, the time has never been better for medical device sellers and buyers to transact their business in the most cost-effective and transparent manner possible.
That's why Denver-based startup company MedPassage is taking on the role of linking device buyers and sellers to save money for buyers and increase sales for sellers.
"We're directly connecting buyers and sellers in this industry," said Mike Biselli, who co-founded MedPassage with Gavin Fabian. "Reimbursement rates are falling off the table. Costs are going up and everybody's getting squeezed from all sides.
"We need to figure out more cost-effective ways to do business."
Biselli said MedPassage is initially targeting the ambulatory surgery market, which is primarily owned by physicians.
Buyers are always looking for better deals on their medical device purchases, and Biselli said device sellers are showing an inclination to reduce costs if they can scale back their sales force.
"We're noticing there's lots of device companies out there willing to reduce (costs) if they can reduce their sales support," he said.
Biselli said the government caps Medicare and Medicaid reimbursement rates for health care providers, and lower device costs to providers means more profits.
"If we can reduce the costs of the products, that's more they can clear for themselves," he said.
Device sellers and buyers simply visit www.medpassage.com and create an account. Buyers pay no fees or commissions and can purchase devices at 40-70 percent below industry average prices, according to MedPassage.
Sellers pay a 5 percent commission and MedPassage handles the orders. Biselli said MedPassage works exclusively with U.S. sellers who are FDA approved and ISO certified.
"We want to create the most elegant and streamlined experience for the buyer and seller," he said.
Biselli said he and Fabian have more than 20 years of experience in the medical device industry and understand how the system operates.
"We know the language and how the industry works," he said.
Biselli said the advent of Obamacare has opened the door for MedPassage to be the kind of broker the medical device industry needs now.
"If we'd tried this probably three years ago, it probably wouldn't have worked," he said.
"We need some positive change. Let's create a healthy transition in the marketplace."
Biselli said his company is a client of Galvanize in Denver and has benefited from its atmosphere of shared ideas.
"This has been an incredible opportunity for us to be around other entrepreneurs here at Galvanize," he said.