Matt Werder was poised to spend several million dollars to replace IV fluid pumps in patient rooms throughout Hennepin County Medical Center. But he was hitting a wall trying to recoup some cash from the old ones, which still worked but lacked updated features.
One manufacturer claimed the more than 400 IV pumps had no value, and another offered a few dollars apiece.
So Werder, HCMC's director of supply chain management, put in a call to Miga Solutions, a Plymouth-based company that has developed a Kelley Blue Book of sorts for medical equipment. Miga valued the pumps at $180,000.
"That data was key," Werder said. "We renegotiated with the manufacturer and were able to realize the full trade-in value."
Unlike the consumer world, where websites, online auctions and consignment shops can help sellers determine the market value of their goods, hospitals don't have such easy and reliable sources for pricing on used MRIs, CT scanners and other equipment that originally cost millions of dollars.
Miga, with its proprietary pricing information on more than 15,000 types of medical equipment, is one of the nation's few resources. The privately owned company is gearing for high double-digit growth this year, as health reform efforts put pressure on hospitals to keep costs down while improving patient care.
"This is the new economics of health care," said Peter Robson, Miga's CEO. "We're all about wasted money."
The company's name is an acronym for "make it go away." Formed in 2004, it initially focused on helping hospitals resell, recycle or donate outdated or unwanted equipment. It has since expanded its services to help hospitals find cost savings throughout the equipment's entire life cycle, including analyzing service contracts that can cost into the six figures.