This Startup Is Disrupting Rural Healthcare

When Jenn Morson Frederick went into labor with her baby in Annapolis, Maryland, she remembers being hooked up intravenously to an infusion pump because she needed antibiotics. She readily admits that the last thing on her mind was what would happen to the pump after she was done with it.

In fact, the pump might go on to assist the labor of another new mother at a rural hospital many miles away, thanks to an innovative online marketplace called Medinas Health. Founded last year by a 27-year-old entrepeneur, Medinas Health buys used medical supplies and sells them to under-resourced hospitals who are happy to get functioning equipment at discounted prices.

The startup is built on a machine learning algorithm that uses historical data for medical devices to predict how much longer they can be used and still be sold at optimum prices on the secondary market. This allows hospitals to squeeze the most use out of their supplies.

Such transactions are the lifeblood for rural or critical access hospitals, says Chloe Alpert, the founder and CEO of Medinas. She first came up with the idea when she noticed a glaring discrepancy in the healthcare marketplace: From 2010 to 2016, 79 hospitals had closed their doors and hundreds more were at risk. At the same time, according to the National Academy of Medicine, the United States wastes medical supplies to the tune of $765 billion every year. On a household level, many people are saddled with medical debt: One in six Americans has past due healthcare bills. The numbers shocked Alpert.

In Oakland, there are children who can’t afford care and there are smaller practices just getting eaten up on cost

What’s more, she found that many used medical supplies were being shipped off to developing countries, partly to minimize the hospitals’ liability. “[The model was] fundamentally flawed,” she says. “I live in San Francisco and ten minutes from where I live, in Oakland, there are children who can’t afford care and there are smaller practices just getting eaten up on cost.”

Now, through Medinas, hospitals can offload unwanted clinical assets, and other medical offices can buy them at discounted prices. Since its launch in August 2017, the startup has sold just over 100 items, ranging from infusion pumps to an MRI machine.

Typically, hospitals hold onto their medical supplies as long as possible. Proprietary data from Medinas place the life expectancy of something like an infusion pump at ten years.

“Hospitals’ biomed departments are going to try to keep that unit going for as long as they can because you have to replace an entire fleet and that’s a significant financial overlay,” says Suzi Collins, Director of Materials Management at Mountain Vista Medical Center in Gilbert, Ariz.

Hospitals hold onto their medical supplies as long as possible

But after many rinse-and-repeat repairs, it might be time to spring for a new unit. Medinas conducts cost-benefit analyses to show whether it’s worth the financial cost for a hospital to hold on to old, creaky equipment. In some cases, manufacturers introduce a new version of a pump and discontinue support for older models, forcing hospitals’ hands.

That’s when Medinas may step in to facilitate the sale of older medical devices to different hospitals, connecting the lives of urban moms like Frederick to rural moms like Kelly Burch, who recently delivered her baby at the Alice Peck Day Memorial Hospital in rural Lebanon, New Hampshire.

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