Implant Management to Address $25.4B Supply Chain Savings Opportunity

Response to Navigant Report

November 27, 2018

Focus on Implant Management to Address a $25.4 Billion Supply Chain Savings Opportunity


Craig Lan
Craig Lan
Vice President,
Product Management

According to Navigant's October 2018 Healthcare Supply Chain Report1, hospitals can safely reduce their supply chain expenses by an average of 17.7% or $11 million annually. This represents an increase of 10% from 2017 and equates to an annual cumulative savings of $25.4 billion. The analysis further reveals that equal savings opportunities exist across multiple hospital characteristics, including size, location, and for-profit or not-for-profit status.

The clear takeaway from Navigant's findings is that despite current efforts by hospitals and health systems to optimize supply chain processes and product utilization, creative tactics and solutions are still needed -and I couldn't agree more.

Implants, though just one segment of the overall supply chain, can represent up to 30% of a hospital's total supply spend2. Expensive on their own, sometimes accounting for more than 50% of the cost of procedures, implants can be a major source of additional expenditures if not managed closely. According to the Global Healthcare Exchange, hospitals and suppliers nationwide lose up to $5 billion in implantable devices annually because of waste and ineffective processes3.

From my experience working with hospitals and supply chain leaders across the country, I see tremendous opportunity to improve the management of implantable tissues and devices in three key areas - to both yield financial savings and to improve the quality and safety of patient care:

  1. Reduce waste
    Many hospitals continue to use homegrown systems in an effort to track implants, from receipt of items through use in patient procedures. While these solutions perform the job of detailed tracking, they typically do not highlight areas where waste is excessive. For implants, common sources of waste include Expiration, Loss, and Items Used but not Billed for. Software that monitors inventory closely can greatly reduce these types of waste.
  2. Optimize inventory levels
    Hospitals need to manage inventory levels to avoid the risk of stock-outs and to avoid carrying too much inventory. By effectively tracking inventory, supply chain managers can stay within optimal inventory levels, simultaneously minimizing the risk of running out of items, and avoiding an unnecessary quantity of expensive implants.An additional inventory consideration, specific to implants, is the need for hospitals to diligently monitor device recalls. By ensuring the facility is notified of recalls quickly, supply chain managers can remove items from stock to avoid threatening patient safety scenarios.
  3. Reduce clinical variation
    Variation in implants used exists in every complex health system. With the sheer number of options for implant types available to clinicians, different implants that serve the same clinical purpose are used. Sometimes this variation is warranted when a strong clinical reason exists, but other times clinicians may not realize there are lower cost and equal value alternatives. By tracking implants used for identical procedures and comparing these over time, supply chain managers can better inform clinicians about the cost side of the equation when such expensive variability exists.

To address the above opportunities, hospitals will need to invest in a software solution that enables the unique tracking and management requirements of tissue and device implants. A solution with strong predictive analytics and reporting, recall matching, and monitoring of device usage and variation are just a few fundamental features to look for. It is the right time for the status quo of supply chain management to be challenged-and implants are an important place to start.

1. "Hospitals' Supply Chain Savings Opportunity Jumps to $25.4 Billion a Year," Navigant, October 2018
2. Taken from the Navigant 2018 report (1), total supply chain spend includes: medical and implantable device costs, medical/surgical and pharmaceutical supplies charged to patient care departments, and supplies related to buildings/fixtures, maintenance, and plant operations
3. "Industry's Achilles Heel: The Supply Chain," Global Healthcare Exchange (GHX), 2013

Champion Gives Back to Celebrate Customer Service Week 2018

Champion Healthcare Technologies joined with customer service professionals in all 50 states and over 60 countries in celebrating Customer Service Week, October 1st-5th!

The week provided an opportunity for us to focus on the importance of customer service to our organization and to the individuals we serve each day. Equally important, it was a time to recommit to our customer support mission - Deliver world class customer support and training with integrity and simplicity that will meet and exceed our customers' expectations

To celebrate the end of the week we were lucky enough to join Feed My Starving Children, a non-profit organization, that let us volunteer to pack scientifically formulated meals for malnourished children. Feed My Starving Children distributes to over 200 partners in 50 countries and Champion's team completed packing 12,960 meals that will feed 35 children for one year!

A huge thank you to every department who is committed to making our customer's feel appreciated and heard day in and day out. It was a wonderful week and our staff was exemplary of this years theme, "Excellence Happens Here"!

Champion Healthcare Technologies CEO Peter Casady to Present at the Association for Healthcare Resource and Materials Management 2018 Conference

AHRMM18 Presentation to Discuss Warranty Credit Requirements and Best Practices to Mitigate Risk

CHICAGO - August 7, 2018 - Champion Healthcare Technologies, an implant tracking and inventory management company, announced today that Peter Casady, founder and chief executive officer, will present alongside Tyler Fredericksen, category analyst, Centura Health, at AHRMM18. The Learning Lab session entitled, "Navigating OIG Audits for Device Overpayments: Best Practices" will be held on Tuesday, August 14th at 1:00 p.m. CT.

"Errors in device warranty credit tracking and reporting can leave hospitals at risk of an OIG audit and liable for significant penalties," said Peter Casady, CEO, Champion Healthcare Technologies. "It can be challenging because the process is typically very fragmented and lacks transparency. However, with the right procedures and systems, we believe hospitals can significantly streamline workflow and increase visibility throughout the process to reduce risk."

The session will include a discussion about Centers for Medicare and Medicaid Services (CMS) requirements, Office of Inspector General (OIG) audits and the resulting financial penalties around incorrectly reporting medical device warranty credits. The presenters will describe best practices for internal processes and procedures to effectively manage claims to reduce risk and ensure compliance. In addition, Fredericksen will provide an overview of Centura Health's approach to streamline the workflow and create transparency throughout the process to enable stakeholders across the organization to be more efficient.

ARHMM18 is scheduled for August 12-15th in Chicago, IL. In addition to the presentation, Champion Healthcare Technologies will also be exhibiting at Booth #223. For more information, visit

About Champion Healthcare Technologies
Champion Healthcare Technologies provides comprehensive implant tracking and inventory management solutions. Its broad portfolio helps hospitals and health systems effectively track and manage tissue and implants throughout the enterprise to ensure compliance, optimize efficiency and improve patient safety and quality. Leveraging a deep integration with vendors, government entities and other systems, Champion empowers healthcare organizations with greater transparency and visibility. For more information, visit us at or follow us on LinkedIn and Twitter.

2018 Healthcare Coalition Conference

September 18-20, 2018

Owensboro, KY

OR Manager Conference 2108

September 17-19, 2018

Nashville, TN

AHIA 37th Annual Conference

August 26-29, 2018

San Diego, CA


Track G7: Navigating OIG Audits for Device Overpayments: Best Practices

Tuesday, August 28th, 2018

2:10 – 3:00pm

Presented by: Peter Casady, President, CEO, Champion Healthcare Technologies

Recently, the OIG has focused its attention on hospitals management of the warranty claims process. The audits are finding that many hospitals do not have adequate systems and processes in place to meet compliance requirements in this area, resulting in over payments by Medicare.

Peter Casady will discuss best practices and tools to improve the warranty credit claims processes to ensure compliance and increase efficiency.


Champion Healthcare Technologies Launches Software Pilot to Address Medicare Overpayments

CHICAGO, Aug. 1, 2017 /PRNewswire/ - Champion Healthcare Technologies ("Champion"), a healthcare information technology company and leader in tissue tracking and medical device management systems (MDMS) for hospitals, in collaboration with Mayo Clinic, has developed a warranty management system to address Medicare overpayments for the replacement of defective medical implants. The Warranty Tracker™ system is currently being piloted at three Mayo Clinic campuses in Rochester, MN, Jacksonville, FL and Phoenix, AZ.

Warranty Tracker™ helps providers automate and streamline the warranty reimbursement process for implanted medical devices including pacemakers and defibrillators, cochlear implants, and neuro stimulators. The Centers for Medicare and Medicaid Services (CMS), requires hospitals to obtain available credits from manufacturers for replaced medical devices and to keep records of the credits they receive. Currently a provider must undergo a complex series of manual steps without clear visibility into the reimbursement status of returned devices in order to receive full or partial credit from manufacturers for devices that are covered under warranty. Providers are subject to audit by the Office of Inspector General (OIG) and want to ensure the reimbursements from manufacturers are up to date and accurate.

In October 2016, The Wall Street Journal reported the U.S. government "spent $1.5 billion in taxpayer dollars to treat 375,000 Medicare patients who received faulty cardiac implants.1" OIG audits confirm overpayments to providers due to issues including improper tracking of device warranty credits from manufacturers. These credits can amount to thousands of dollars per patient and CMS can levy fines to hospitals it judges noncompliant in securing warranty credits which are due without applying those credits to the patient's bill.

"We're very proud to work with Mayo Clinic to provide hospitals with a management tool that solves the complex problem of capturing warranty reimbursement dollars and document refunds to Medicare for overpayments on replacement devices," said Peter Casady, Chief Executive Officer of Champion Healthcare Technologies. "The Warranty Tracker solution draws on Champion's core expertise developing medical device management systems that improve patient safety and compliance and reduce hospital operating costs."

Under the agreement, Champion and Mayo co-developed the warranty credit management software and conducted beta testing at Mayo Clinic.

"The process for tracking device warranties can be challenging due to many touchpoints and we at Mayo Clinic have been proactive to improve the processes and efficiency," says Paul Friedman, M.D., a cardiologist at Mayo Clinic who has collaborated on the project.

Champion holds the exclusive global marketing license. The warranty credit management solution, Warranty Tracker™, can be incorporated as a module in Champion's UDITracker® Interventional or UDITracker® OR software solutions.
Mayo Clinic and Dr. Paul Friedman have a financial interest in the technology referenced in this news release. Mayo Clinic will use any revenue it receives to support its not-for-profit mission in patient care, education and research.

1Wall Street Journal - Oct 19, 2016

About Champion Healthcare Technologies
Champion Healthcare Technologies is a privately held, healthcare information technology company and leader in tissue tracking and implantable medical device management systems (MDMS) for hospitals. Champion's flagship system UDITracker® captures, documents and shares medical implant information between patient care and supply chain information systems, empowering hospitals with the insights they need to increase patient safety and drive down operating costs.