As the current economy demonstrates, uncertainty is not the friend of most companies. Predictability is what is called for and desired to maintain a stable and growing company. When uncertainty creeps into the equation, company management gets nervous and unsure of where to turn. If a company or investor understands that change and the resulting uncertainty is coming, however, they can prepare and be ready for it. Understanding and positioning is the key to success in an uncertain world and economy. If an investor can find a company that is prepared and ready for a coming uncertainty, he may well have found possible profit potential.
SRI/Surgical Express Inc., an operating room instrument sterilization and supply company, works to market products and services directed toward operating room efficiency and operation. The company provides both instrument sterilization and surgical product cart set-ups.
Cleanliness and efficiency are at the root of the company’s business. Instruments need to be sterilized and put back into service on a short turn-around cycle while reusable and disposable products need to be easily accessed and inventoried to reduce time and cost considerations. From a soft products standpoint, the company offers completely outfitted cart set-up so staff time is put to more efficient use. Instead of having to pick each product individually, staff can simply wheel a pre-determined cart into the OR, being sure that sponges, gauze, wraps and other needed products are available and ready to go.
Instrument use is a key element in a cost conscious healthcare system. Reducing the number of surgical instruments reduces inventory and initial cost. At the same time, a hospital cannot afford not having the proper instrumentation. SRI/Surgical offers an overnight sterilization service that turns around instruments in an efficient manner, so as to enhance OR efficiencies and operation.
Although the past several quarters have been difficult ones for the company, it does appear that it has turned a corner. It has recently signed a 5 year co-marketing agreement with Cardinal Healthcare and obtained a three year line of credit. If the incoming administration is able to follow through with its pledges of healthcare reform, it is likely that the company will be able to benefit. It may need to trim the number of packs (400) it offers to accommodate the likely changes, but seems ready for whatever may come. Management does seem to be open to the coming reality and ready to keep pace. If it can, SRI/Surgical Express should be the leader in OR best practice management and cut through to profits in a new healthcare environment.
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