An ebay for medical devices?

April 18, 2013 by Brian Johnson

Novation spinout Aptitude launches an online medical device marketplace for hospitals, aiming to streamline the sales process and amass data on medtech sales trends and market shares.

Novation aptitude

Is it a game-changer, or "game over" for the medical device industry's business model?

Aptitude LLC, an online marketplace aimed at streamlining the hospital purchasing process by connecting medical device suppliers with their counterparts in the hospital industry, is set to launch early next week at the IDN Summit in Orlando.

The web portal, created as a wholly owned subsidiary of Irving, TX.-based group purchasing organization Novation, is billed as the "industry's first online direct contracting market."

"The way I would describe it is that Aptitude is very much like ebay, which provides a marketplace where buyers and sellers can come together," Aptitude general manager Troy Kirchenbauer told "You have pre-defined buyer and seller entities in the market and the market is infused with data that's provided by the participating hospitals."

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Kirchenbauer, who's held executive positions at Novation since 2001, said Aptitude is the result of a substantial investment the GPO made 2 years ago to re-engineer the way hospitals and medical device suppliers do business. The goal is to lower the cost and time associated with purchasing medical equipment.

"We've really spent the last couple of years looking at market models and trying to find alternative ways to bring buyers and sellers together in healthcare, which would reduce the cost of brokering those relationships and create incremental benefit for both the buyer and the seller, to help alleviate the challenges they experience today in the market," Kirchenbauer explained.