SRI/Surgical Express has doctors and patients covered, even when the gown opens to the back. The company, which conducts business under the name SRI Surgical, provides hospital and surgical centers with such reusable surgical products as gowns and towels. It also provides reprocessed surgical instruments, basins, and surgical accessories that it sorts, sterilizes, and packages at about a dozen regional facilities in the US. The company offers pick-up and delivery service as an alternative to in-house recovery programs. SRI Surgical forms multi-year or short-term agreements with such customers as Kaiser Permanenteand Novation. SRI/Surgical Express was acquired by Synergy Health in 2012.
UK-based Synergy Health provides outsourced sterilization services to the medical device and health care industries. The company paid some $25 million in equity value and $38 million in enterprise value to add SRI Surgical to its fold.
SRI Surgical's short-term agreements are generally formed with large group purchasing organizations (GPOs) that negotiate lower prices for their clients, which include tens of thousands of hospitals in the US. SRI Surgical's multi-year contracts are with hospitals and surgical centers.
SRI Surgical also has a multi-year supply and co-marketing agreement with Cardinal Health, under which Cardinal is SRI Surgical's exclusive supplier of disposable surgical packs, and provides for a new product offering, the Hybrid Preference Pack, which combines SRI Surgical's reusable surgical packs with Cardinal Health's disposable surgical packs.
SRI Surgical's operations work by providing daily processing, assembly, and delivery of reusable and disposable surgical products and instruments through its service centers. After they are used by the hospitals or other customers, the reusable textiles, basins, and instruments are picked up and returned the processing facilities. Used products are sorted, cleaned, inspected, packaged, sterilized, and shipped back to the health care providers.
One way SRI Surgical seeks to keep its manufacturing costs down and manage its customers' supply chain at the same time, is by employing radio frequency identification (RFID) technology. RFID is a method of indentifying and tracking products through the use of small tag that adheres to the product and transmits radio waves to an external source. In the processing plant, the use of RFID tagging eliminates the need for more labor-intensive bar-coding to track product usage and whereabouts. In hospitals, the use of RFID tagging is becoming an increasingly popular method of inventory control, helping to reduce the occurrence of lost or stolen supplies.
Over the longer term, the company plans to expand its business operations by providing additional products (such as the Hybrid Preference Pack) and services to its existing customer base, as well as by acquiring new surgery-focused hospital and surgery center customers. – less