Page 4 - KG_1 Booklet - 2019
P. 4

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)


















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                                                                                                        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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