We have no problem admitting that ninety percent of the ideas, and startups that are showing off today at Zeroto510′s demo day fly way over our head. There’s one thing we know real well though and that’s millions of dollars.
Today in Memphis Tennessee, Zeroto510, the first cohort based medical device accelerator in the country graduated their first class. For an overview of the accelerator and the startups presenting today, click here.
One of the startups we’ve gotten a chance to know here in Memphis is Restore Medical. We met co-founders Ryan Ramkhelawan and Shawn Flynn at an office hours event we held in Memphis in June. That’s where we first heard about there new and innovative way to sterilize surgical instruments.
Traditional methods of sterilizing surgical instruments have been in place since Flynn was a surgical assistant in the US Army 20 years ago. Yes, with all the innovation we’ve experienced in the country in the last two decades, the sterilization of surgical instruments still resembles the way a high volume chain restaurant washes their silverware for a dinner rush. Instruments are piled into a basket with no regard for blades, needles, pins and of course accidents.
Restore Medical has two key elements to their business; protecting patients from infections from dirty instruments and saving hospitals money. Restore Medical’s new sterilization process does both. Restore Medical’s process keeps the surgical instruments separated, or rather organized and spread out in a way that every instrument is equally sterilized throughout the process.
When we met at office hours the duo explained that there are a lot of faults in the current system. They should know this as both have had surgery support career paths for over 20 years. One of the faults is the fact that if one tool is missing from a set of tools for a procedure the operating room needs to call down for a brand new set. This can take up to two hours, on a rush. Doctors are faced with whether they are going to keep a patient under anesthesia for the wait or wake them up and put them back under. Of course both of those options can be costly and risky.
During the presentation today Flynn highlighted the fact that with Obama Care taking effect in 2014, there will be 30 million more patients in the system. Now is the time that hospitals need to streamline processes, cut down costs and maximize their certifications. Hospitals need to make sure that their infection rates are low so that they can be reimbursed for patients they take without traditional insurance.
Restore Medical can increase revenue for hospitals by $14.5 million dollars per year (each) and save $500,000 in hard costs.
Their technology, coupled with the revenue by changing to Restore Medical’s system has attracted 5 Wellstar hospitals to already putting in a purchase order. The purchase order hinges on Restore Medical getting their 510K. If their 510K is approved that purchase order is $3.75 million dollars.
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