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iPad owners, download the free app for DOTmed Business News magazine today. Get the current issue and the entire archive.Search term: DOTmed

MARcH 2012

ContentsFeatures38 AORN 2012 UpdateQ & A with AORN 2011-2012 president Anne Marie Herlehy Find out whos in for 2012


47 DOTmed 100

Industry Sector Reports20 OR SuitesLED lights and hybrid rooms populate the sector

30 Endoscopy/ArthroscopyThe start of endoscopys reign

40 Sterilizers

A hospitals first line of defense against infection

58 Anesthesia

Information management systems sales fuel market



Visit for breaking news daily, to comment on stories in this issue, to participate in surveys and more.

ContentsPUBLISHER, Inc. PRESIDENT Philip F. Jacobus

Departments64 Medical MuseumThe Wales Endoscope

EditoRiALEDITOR-IN-CHIEF Sean Ruck 212-742-1200 Ext. 218 ONLINE EDITOR Brendon Nafziger STAFF WRITERS Diana Bradley Joanna Padovano

65 This Month in Medical History

coca-Koller and the discovery of local anesthesia

dESignDESIGN DIRECTOR Stephanie Biddle SENIOR DESIGNER William Plummer

In Every Issue6 8 9 15 15 15 16 18 63Letter from the Editor Alright, this is the last time . . . Letter from the Online Editor Budget battle dj vu Top Stories from Our Daily Online News Upcoming Events calendar In the Next Issue This Months Exclusive Online content New Products Showcase Hospital Spotlight NewYork Presbyterian Show and conference Spotlight AORN 59th congress This Months Featured Auctions Marketplace & classifieds Blue Book Price Guide

SALESSALES DIRECTOR David Blumenthal 212-742-1200 Ext. 224 KEY ACCOUNT Susan Minotillo MANAGER 212-742-1200 ext. 261 ACCOUNT EXECUTIVES Sean Collins 212-742-1200 Ext. 288 Daniel Gaspar 212-742-1200 Ext. 203 Dustin Sewnauth 212-742-1200 Ext. 289 Rigo Smith 212-742-1200 Ext. 207

Press Releases If you have news regarding your company submit it to: Article and Story Consideration If you have an article or feature story you would like the editor of DOTmed Business News to consider publishing, submit it to: Letters to the Editor Submit letters to the editor to: Auctions If you want information about auctioning equipment on, please call: 212-742-1200 Ext. 296, or email us at DOTmed Business News is published by, Inc., 29 Broadway, Suite 2500, New York, NY 10006 Copyright 2012, Inc. All rights reserved.

66 67 72

DOTmedSM provides the DOTmed Business NewsSM to its registered users free of charge. DOTmedSM makes no warranty, representation or guarantee as to the accuracy or timeliness of its content. DOTmedSM may suspend or cancel this service at any time and for any reason without liability or obligation to any party. All trade names, trademarks and trade dress contained herein belong to their respective owners and are used herein with the intent to represent the goods and services of their respective owners. If you think your trade name, trademark or trade dress is not properly represented, please contact, Inc.


Alright, this is the last time . . .s youre probably aware, during Februarys American Medical Associations conference in Washington D.C., the acting Centers for Medicare and Medicaid Services administrator, Marilyn Tavenner, announced that the government would consider extending the Oct. 13 2012 deadline for the upgrade to ICD-10. Since that announcement, the deadline extension has been confirmed, although no firm date has been set. The original deadline of October, 2011 was extended after providers voiced concerns during a public comment period in 2008. Although a second extension provides a welcome relief for practitioners already burdened with a flood of developments delivered by health care reform, one wonders if it would just be better to rip off the Band-Aid now. Yes, more time gives the opportunity to get things in order. But more time also provides the chance for further developments to crop up increasing the burden. I would hope CMS takes a hard look at Europes adoption of ICD-10 to determine how great the benefit would be to our own health care system. As European health care practices have been using ICD-10 for years already, there should be a wealth of information on its return. Obviously, the greater the return, the greater the argument for pushing forward with current deadlines. Conversely, minimal benefit should translate into possibly keeping the Band-Aid on and sticking to other deadlines with bigger payoffs. It should be interesting to watch how this plays out. In other developments to follow, DOTmed Business News is now available as a free app in Apples iTunes Store. Were very proud to offer the magazine to iPad users and we welcome feedback on your experience with our magazine in that digital format. Of course, our print offering will continue to be delivered and in this issue we deliver industry sector reports on endoscopy updates, the evolving OR suite, safer anesthesia delivery devices and the latest on sterilizers. We also reveal the DOTmed 100 for 2012 and have a chat with AORN president Anne Marie Herlehy. As always, feedback, story ideas and any other suggestions are welcome. Until next issue!Sean Ruck Editor-in-Chief DOTmed Business News


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DOTmedbusiness news

I march 2012



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TOP STORIES FROM DOTmed ONLINE NEWSBudget battle dj vuLetter from the onLine editorregard. Namely, the new budget contains the same proposed plans for imaging that drew an outcry from radiologists last year: it calls for a bump in the assumed utilization rate (meaning lower Medicare payments to providers) and for doctors to get permission from somebody, probably a radiology benefits manager, before ordering an exam. Just like in 2011, radiologists dont seem happy about the proposals, and the American College of Radiology said itll work to get them stricken from the final budget, which is what happened in the last go-around. It remains to be seen, of course, if the script plays out the same way this time. If you have a news tip or comment, write to me at Nafziger Online Editor DOTmed Business News

Top 10 online stories(from Jan. 17 Feb. 10) Obama FY 13 budget includes imaging cuts, prior authorization CyberKnife arrives in Mexico Nuance talks bringing Watson, Siri-like tech to medicine Not safe X-ray unit sold online leads to FDA investigation Varian books $50 million Russia proton order Medical device user fee deal hailed as game changer PACS market to see double-digit growth AMA happy by ICD-10 delay; HIMSS, not so much McKesson acquires peerVue GOP freshmen take aim at med device tax

hile the most-read story over the past 30 days is not a repeat, you should still be able to recognize it. Thats because its about the fiscal year 2013 federal budget, which is similar to the 2012 federal budget, covered in these pages last year, in one important

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DOTmedbusiness news

I march 2012

ExclusivE contEnt uPDAtED DAilY At

Proposed federal budget includes imaging cuts, prior authorization schemehe Obama administrations proposed $3.8 trillion federal budget for fiscal 2013 includes a Medicare requirement that would make doctors get prior authorization before ordering an advanced imaging test. It also could slash millions in reimbursements to doctors, as it proposes lowering payments for advanced imaging equipment to account for higher levels of utilization. The rapid growth in the number and intensity of imaging services over the last decade raises concerns about whether these services are being used appropriately, said a budget outline