Communications Director, Connecticut Hospital Association
110 Barnes Road, Wallingford, CT
rall@chime.org, 203-265-7611
Modern Healthcare – Tuesday, January 14, 2025
By Lauren Dubinsky
Beth Israel Lahey Health has found a way to save millions of dollars while being a good corporate citizen.
The Boston health system reprocesses some devices used in its in-patient settings, operating rooms and labs, sending them off to be reprocessed, made like-new again and then buying back some to use.
In 2023, the reprocessing program at its 14 hospitals saved Beth Israel $1.7 million, and supported its goal of keeping 80% of its waste out of landfill or incinerators by 2030.
It is not alone, as other health systems discover that reprocessing single-use medical devices can be a win-win for finances and the environment. Offering reprocessed devices doesn’t necessarily translate to immediate financial gains for medtech companies but can breed brand loyalty by being responsive to customers.
Reprocessing started in the 1970s, but didn’t become a standard until the Food and Drug Administration implemented regulations in the early 2000s. Beth Israel Deaconess Medical Center began by reprocessing two categories of single-use medical devices in 2009 and the program has increased to 23 categories.
A survey last fall by the Association of Medical Device Reprocessors found that 11,967 hospitals and surgical centers saved nearly $466 million and eliminated almost 24 million pounds of greenhouse gas emissions in 2023 by using reprocessed single-use medical devices. That is equivalent to the emissions from using over five million gallons of gasoline.
“Reprocessing is low-hanging fruit,” said Daniel J. Vukelich, the association’s president. “It’s a way that we can credibly and measurably reduce greenhouse gas emissions and keep track [of] future performance.”
In reprocessing, hospital workers put the single-use devices in a collection bin that the reprocessing company transports to its facility to be cleaned, disassembled, sterilized and reassembled. Hospitals then have the option of buying the reprocessed version at a fraction of the price of purchasing new products.
Cutting costs and carbon
The association represents six companies that carry out most of the reprocessing — Stryker’s Sustainability Solutions, Cardinal Health’s Sustainable Technologies, Arjo ReNu, Medline ReNewal, Innovative Health and Vanguard.
The 3,000 healthcare facilities that Sustainable Technologies works with saved $65 million in product costs in 2023 because they purchased reprocessed single-use devices instead of new ones. In the past five years, the savings totaled $1 billion and more than 26 million pounds of waste was diverted from landfills, the company said.
“U.S. hospitals are facing growing pressure to reduce their environmental impact, even as they deal with rising costs and decreasing revenue,” said Meg McClanahan, director of marketing for Sustainable Technologies.
Beth Israel uses Sustainable Technologies to reprocess devices for its inpatient settings, Sustainability Solutions for its operating room devices and SterilMed for its electrophysiology and catheterization lab devices. It also reprocesses some devices in-house.
The system buys back the like-new equipment for 11 of the 23 categories in its reprocessing program. Pulse oximeters are the most purchased product, which Sustainability Solutions sells for around $5.50 a piece, depending on the model. Pulse oximeters sold by original equipment manufacturers can cost around $9.00.
Since it became a health system in 2019, Beth Israel has been working to expand the reprocessing program to its 13 other hospitals.
“This particular program has been one that I am thankful has been the easiest to continue to expand when there’s opportunities to expand, given our commitment to zero waste by 2030 and the financial aspect that’s tied to it,” said Avery Palardy, climate and sustainability director at Beth Israel Deaconess Medical Center. “It’s really ends up being a no-brainer for us as a hospital.”
The cost of reprocessing vs. buying new
Among the products suitable for reprocessing are compression sleeves, electrocardiogram lead wires and cables, air transfer mats, laparoscopic vessel sealers and dividers and hysteroscopic tissue resectors.
Sustainable Technologies, which also reprocesses devices used in surgery including ablation wands and electrodes, entered into an agreement in May with Innovative Health, a leader in cardiology device reprocessing. Through the agreement, Sustainable Technologies customers can enroll in Innovative Health’s program to access reprocessed electrophysiology and cardiology devices.
Cardiac catheters can cost up to $2,500 each, while reprocessed devices cost about $1,250, Vukelich said. A harmonic scalpel can cost $450 new while reprocessed ones are 20% to 30% cheaper.
When determining if a device can be reprocessed, Sustainable Technologies assesses the durability of the materials, its compatibility with different cleaning agents and disinfection and sterilization methods and the soil and mechanical wear it will encounter during use.
“Devices that are reprocessed are robust enough to withstand multiple uses without losing functional performance and can be effectively cleaned so there is no risk of infection to the patient,” McClanahan said.
Most reprocessed single-use devices are required to provide reprocessed validation testing as part of premarket submissions to the FDA, according to the agency’s website.
How medtech companies benefit
While it’s more financially advantageous to only sell single-use products, medtech manufacturers say they offer reprocessing services to satisfy customer demand.
Other benefits include attracting new customers that are environmentally conscious, ensuring compliance with the latest environmental, social, and governance policies and strengthening supply chain resilience, according to Boston Consulting Group.
Boosts to the supply chain may become particularly important given the tariffs President-elect Donald Trump has said he plans to put in place after he takes office next week.
Health systems, medtech companies, distributors, group purchasing organizations and other industry stakeholders met last April with the goal of accelerating the adoption of reprocessed single-use devices. Major medtech companies including Stryker, Johnson & Johnson, BD and GE HealthCare support the effort.
Medical devices account for 7% of healthcare’s U.S. carbon footprint, according to the group.
The VA’s ban on reprocessed devices
Despite many health systems opting for regulated reprocessed single-use medical devices, the Veterans Affairs Department stands firm against the practice.
An agency directive bans the use of FDA-regulated reprocessing services that involve collecting and buying back single-use devices. A spokesperson pointed to concerns the Joint Commission and the World Health Organization have raised about the practice.
“Reprocessing single-use devices carries significant risk to the patient,” the VA spokesperson said. “Single-use devices are often complex in design, and cleaning efforts, either by hospitals or third-party reprocessors, may be inadequate.”
In August, its Office of Inspector General recommended the agency re-evaluate the policy.