Here is my original post:
Can anyone explain why Halo orthoses are so expensive? Is it the liability
exposure, the cost of quality control, sterilization, cost of the materials,
the relatively low volume of sales, the 24 hour emergency availability, the
cost of the materials, the cost of assembly, the cost of R&D to design and
develop? Any ideas, or is there just good mark up on them for the
manufacturers?
Second installment of replies:
As of Dec.1999 Ive applied approx 3420 halo systems..200
of which were custom made. Doing as many as I have,does this make me an
expert on Halo applications or a medical tech robot.? What are your thoughts
on this..?
Mike Burnette CO PA
ORMC Orlando Fla
Randy you listed all the reasons why the cost is so high. I figure the cost
is about 3 visits to the hospital. That is about $150 a visit in cost of
time out of the office, taking into consideration the driving time, and in
some cases additional time because the surgeon is late in getting to the
patient. If a Halo is 1500 to 1700 and your reimbursement is 1000 over that
you may realize 350 profit for the bottom line after office expenses, and
stocking the equiptment. I think this is fair and resonable. Stocking
inventory for this service is a cost of being in the bis. There are
manufactures whom will start you off with a consignment inventory. All in
all this is a service we make a choice to do. I think the reimbursement is
fair, and quite frankly would put on any hospital halo for 150 a visit if
they supply the Halo.
Best Regards, Rick Feldman, CPO VAN NUYS
I think that the actual manufacturing cost of an atypical halo set is about
150.00.
To turn around and charge 1100.00 for it is abit bold to me. At the same time
the hospital I work at charges the insurance companies 7500.00 for the
application. To me it gets to be pure maddness after awhile…know what I
mean..? Thank god for the simple pleasure of going fishing when it gets
crazy.
Mike Burnette CO
ORMC Orlando Fla.
I am interested in opions from other practitioners about a common practice in
regards to Halos in the large midwestern city in which I practice. Another
company in town gets the complete Halo back from the patient. They will then
“recyle it”, meaning they clean it, use polish to coat any scuff marks then
reuse them. This includes ring, pins, supersrtucture and vest. They can’t
sterilize them because they don’t have the needed equipment. Hospitals are
then charged full price.
What do you think?
Barneeco
My reply:
It’s hard to believe they recycle the pins too!
I would also wonder if reusing the same pin holes in a halo ring could be a
problem or not. I haven’t heard of any studies concerning the integrety of
recycled halo systems.
I’m sure that passing them off as new would be a problem, but to save money,
I wouldn’t put it past some MCOs to accept recycled systems.
I’m sure the manufacturers would fight against legalizing such a
practice. The question is, who would stand behind a recycled halo?
Randy
