April 18, 2023

A Journey Towardsthe Rep-less OR

© Intralign 2015

Bending the Cost Curve

• Alignment of surgeons and hospitals; clinical and operational goals

• Integration of tools and strategies in TJA to enhance transparency andaccountability

• Change management – Strength and capability to affect lasting, sustained change

Intralign’s Innovative Vision

© Intralign 2015

Aligning Clinical and Operational GoalsCombining Clinical Staffing with Efficiency Enhancements

Increase throughput and quality while reducing costAddress operational and clinical concerns simultaneously

Enable substantial and sustained transformation© Intralign 2015

Addressing Drivers of OR CostsRectifying Operational and Clinical Inefficiencies

Hospital Cost DriversImplant CostCutting AccessoriesCement AccessoriesPAT and SPD

Environmental ProtectionPatient-Specific Cutting BlocksNavigationDevice Complexity

Process transformation and supply chain solutions add

efficiencies.

Highly qualified clinical staff increases throughput, reduces

costs and increases quality.

Focus on Orthopaedic Care

• Implants contribute considerably to the cost of orthopaedic care delivery

• SG&A costs of the major manufactures driver of higher implant costs

Key Driver is Implant Cost

R & D6% Tax

4%

Selling and admin43%

Cost of goods29%

Net income11%

Other9%

Orthopaedic Implant Cost Components

According to a 2007 study by the American Academy of Orthopaedic Surgeons (AAOS), Total Hip Replacement and Total Knee Replacement procedures will grow 174% and 673% respectively over the next 20 years.

© Intralign 2015

The Role of the Sales Rep

• Lack of price transparency and rep presence leads to unnecessary up-sell

• Rep or multiple reps in OR slows room turnover

• Clinical support provided by the rep is not free – charged through hefty SG&A implant cost

Influencing the Cost of Orthopaedic Implants

The result: Loss of control, reduced efficiency and higher supply costs.

© Intralign 2015

Barriers to Going Rep-lessIntralign Addresses these Key Issues

Device rep relationship with clinicians

Intralign addresses these barriers and helps the hospital move toward a Rep-less solution.

Sourcing specialized clinical support with device knowledge

Managing inventory and implant complexity

Interrupted back table and surgical episode processes

Transitioning Physicians and staff to new model

© Intralign 2015

Going Rep-lessIntralign enables the hospital to journey towards a Rep-less solution

Objective evaluation of technology opportunities

Intralign’s Rep-less model addresses the elements needed to regain control.

Empowered surgical team with device & clinical knowledge

Improved process flow across the episode of care

Cultural shift with alignment of clinical and operational stakeholders

© Intralign 2015

Intralign’s Rep-less Journey

Every hospital is unique. Intralign’s Rep-less model combines assessment with clinical and operational tools to get to an optimized surgical episode.

Aligning Clinical and Operational Goals

© Intralign 2015

Intralign’s Rep-less Assessment

Intralign takes the hospital through a collaborative process of identifying opportunities for process improvement and prioritizing high impact process transformation initiatives

Methodology

Rep Value Mapping

Rep-less ModelRecommendations

GapAnalysis

Roadmap Initiatives

© Intralign 2015

What does the rep do in our facility?Rep Value Mapping

© Intralign 2015

Can our facility go rep-less?Gap Analysis Methodology

© Intralign 2015

What initiatives do we need to take?Rep-less Recommendations

All surgeons are not involved in the design of the program

Purchasing and replenishment process is inefficient

High implant costs threaten service line profitability

Problem

Specialized clinical support is lacking in OR

Intralign Alignment & Commitment: Brings clinical and operational stakeholders together to identify mutually agreeable goals

Intralign Process Transformation: Combines best practice research with human-centered design to transform inefficient processes

Intralign Value-Based (Generic) Technology: Access to generic implants reduces costs and increases efficiency while maintaining clinical quality

Intralign Solution

Intralign Intra-Operative Support: Highly-trained surgeon extenders fill the “rep gap”, increasing efficiency and throughput

© Intralign 2015

How do we get to rep-less?

© Intralign 2015

Roadmap Initiatives

Heavy dependence on device rep for inventory

management and training of surgical team.

Redesign inventory and set management

process, and train personnel. Improve

overall surgical team performance for

efficiency, staffing consistency, reduced

variation, and improved outcomes.

Launch rep-less model and improve clinical

outcomes while reducing costs. Achieve control of

the surgical process without relying on

the rep.

AssessCurrent State

Design Future State

Achieve Future State

Thank YouFor more information about Intralign’s Rep-less model

go to www.intralign.com