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Cost Savings Analysis for Kleiner Device Labs KG 1






                                  Single-Level Lumbar Spinal Fusion - KG 1 Use vs. Stainless End-Dispensing Tool
                                                                                                  KG 1 USE –        KG 1 USE - 100

                                          COSTS/(COST SAVINGS) FROM:                            AVG. PER CASE        CASES/YEAR

                          Eliminate use of BMP1                                                    ($1,750)           ($175,000)
                          Reduce number of fusion revision surgeries2                              ($5,333)           ($533,300)
                          Save up to 20 min per fusion level3                                      ($1,000)           ($100,000)

                          Reduce Surgical Site Infection4                                              tba                 tba
                          Per use device cost5                                                        $250              $25,000
                          TOTAL COST SAVINGS FROM KG 1                                             ($7,833)           ($783,300)





                      1                       2                        3                        4                        5
                     In clinical testing, use of   By increasing fusion   In clinical testing, compared   A clinical study is planned   This compares the cost of
                     the KG 1, without BMP,   success rates, from 75% to   to several traditional graft   to determine specific SSI   the KG 1 to only the $30
                     increased fusion success   92%, of every 100 cases,   insertion methods, the KG 1   savings.  However, the   average reprocessing cost
                     rate from 75% to 92%.  In   17 less revision procedures   was found to save up to 20   ECRI Institute found that   of a reusable graft tool.
                     the U.S., BMP is used in   will be needed.  At   minutes per spine level   cannulated instruments   Reliable data for average
                                                                               .
                                                                                                                                 .
                                                                                                        .
                                                      .
                              .
                     about 50% of cases.  At a   Medicare’s 2017 spinal   being fused.  At an average   comprised the largest   hospital costs such as
                     per-level cost of $3,500,   fusion reimbursement rate   hospital cost rate of $50 per   portion, 35%, of dirty   repair, depreciation and
                     average savings per     of $32,000, that is savings   minute, $1,000 can be   instrument events,   amortization, storage, etc.
                     procedure cost is       of $533,000 per year, or   saved on a single level   suggesting bone graft   is not available, but would
                     ($1,750).               averaging $5,333 per case.  fusion case.         devices should be a priority   make the comparison more
                                                                                              for moving to disposable.  fair.
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                    MKT-00010-16 Rev 1 DCN 0006
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