IoT and AI in the OR: Bringing Automation into the Operating Room

by Joshua Mecca

Combining sensor technology and Artificial intelligence to create more efficient, effective, and safer surgical procedures.
Houston, TX United States Medical Device AI in Medicine BigData Equity Raise

All Team Company Patients Hospital Mission Innovation Details Investor Info Due Diligence Docs Supporters Comments Updates

About our project

The problem we solve:
Right now 14% of the operative time is spent counting surgical sponges alone (no metal instruments) because this is manually done it leads to 1 in 8 surgeries having a counting discrepancy. This leads to more time and risk for the patient. To make matters worse, less than 20% of the instruments brought into the operating room are even utilized through the course of the procedure. This leads to millions in unnecessary costs and even more money in lost productivity.

About our solution:
We created proprietary RFID that detects, counts, tracks, and locates surgical items in real-time, essentially automating the inventory that takes place before during, and after each procedure. Simultaneously, we track which instrument is being used, not being used, and how long each item is being used for by surgeon and by case and apply machine learning algorithms to continuously classify the utilization of said instruments. Using that data we provide downstream analytics to supply chain in order to remove unnecessary instruments from surgical sets, while instantly updating/customizing preference cards.
Progress to date:

We have a functioning prototype and algorithms, as well as partners including Baylor College of Medicine's Department of Surgical Innovation and Stony Brook University.

We are recent graduates of Texas Medical Center's Innovation Accelerator TMCx, recognized as a Top 100 Healthcare Startup by Medtech Innovator as well as being selected as a Health Transformer by Startup Health. 

 

We have two LOI's, Two signed pilots, and a pending sale. 


About Our Team


Creator: Joshua Mecca
Bio: I am a healthcare junkie. I love continuously learn about the industry and apply my knowledge to hopefully make an impact. My company and I are on the receiving end of a few awards and honors that I am grateful, such as being a Top 100 Healthcare Startup recognized by MedTech Innovator as well as being in the Top 10% of the greatest Digital Health startups in the world recognized by Pulse@MassChallenge.
Hospital Affiliation: Other institution
Title: President
Advanced Degree(s): M.S in Biotechnology

About Team Members

John Strauss
Vice-President, B.S Biology
Biography: My previous position at a project manager at an environmental firm in Pennsylvania lead me to the world of healthcare as co-founder of M&S Biotics.
Title: Vice-President
Advanced Degree(s): B.S Biology
LinkedIn: https://www.linkedin.com/in/john-strauss-2b554256/

About Our Company

M&S Biotics, LLC
Location: 2450 Holcombe Blvd
X
Houston, Texas 77021
Website: https://www.msbiotics.com/
Facebook: https://www.facebook.com/MSBiotics
Product Stage: Prototype/MVP
YTD Sales: Working on it
Employees: 3-5

How We Help Patients

Processes that are outdated such as surgical counting place unnecessary risk on the patient in two ways.

1. one in eight surgeries have a counting discrepancy, which leads to more time in the operating room and increased use of anesthesia.

2. one in 2,500 surgical cases has a retained surgical item, that could lead to infection or death.

Our system automates the surgical counting process while eliminating the risk of a retained surgical item. 

How We Help Hospitals

Statistics

Right now, 14% of the operative time is spent counting surgical sponges alone (no metal instruments) because this is manually done it leads to 1 in 8 surgeries having a counting discrepancy[1][2].

 

For example, less than 20% of the instruments brought into the operating room are even utilized through the course of the procedure[3]

 

 

Many experts agree that this could be a huge impact on healthcare for several reasons.

  • 40% of a hospitals expenditure is directly tied to the operating room. Hospitals live and die by the number of procedures they can perform in day, while having to be extremely sensitive to costs[4].
  • Healthcare productivity moves about half the national average compared to other markets. If we stay on par, by 2027, 57% of the hospitals in the U.S will be operating at a net loss[5].
  • By routinely adding a one-hour case every day, a hospital can increase its margin by $500,000[6].
  • For a typical hospital with an 8-hour surgical day, each 1 percent improvement in OR efficiency is a savings of more than $50,000 per year/per OR; for mid-sized to larger hospitals, which is $1 million if they have 20 ORs[7].

 


[1] Christian CK, Gustafson ML, Roth EM, et al. A prospective study of patient safety in the operating room. Surgery. 2006;139:159–173.

[2] Gibbs, Verna C. "Thinking in three's: changing surgical patient safety practices in the complex modern operating room." World journal of gastroenterology: WJG 18.46 (2012): 6712.

[3] *Stockert, Emily Walker, and Alexander Langerman. "Assessing the magnitude and costs of intraoperative inefficiencies attributable to surgical instrument trays." Journal of the American College of Surgeons 219.4 (2014): 646-655.

 

[4] Guerriero F and Guido R. (2011). Operational research in the management of the operating theatre: a survey. Health Care Management Science 14(1), 89114

[5] Sheiner, L., & Malinovskaya, A. (2016). MEASURING PRODUCTIVITY IN HEALTHCARE: AN ANALYSIS OF THE LITERATURE

[6] Garner, Patrick. "Complexities in the operating room." IIE Annual Conference. Proceedings. Institute of Industrial Engineers-Publisher, 2012.

[7] http://www.healthdatamanagement.com/opinion/how-software-and-analytics-can-boost-operating-room-efficiency

 


Challenge Mission

Key Milestones Achieved and Planned

Milestones

  • Provisional utility patent filed
  • Initial efficiency, efficacy, user validation testing, and bench testing, and market validation completed.
  • A graduate of Texas Medical Center’s Innovation Accelerator TMCx.
  • Two Letters of Interest from CHI St. Luke’s, and Memorials Hermann
  • Signed pilots at Southampton Hospital and Highland Surgical Center
  • Pending Sale to Dell Seton Medical Center at the University of Texas Q2/2018
  • Acceptance in to JLABS @NYC

With our $1.5M we plan to finalize our development of our commercially viable product, complete electromagnetic testing/ submit for 510K clearance, start pilots, aggregate 1,000,000 data points, expand team, and capture our first sale. 



Our Competitive Advantages
  1. One of the biggest differentiators for M&S Biotics is that we are completely autonomous, meaning we do not require any manual effort, nor do we disrupt current operating room workflow. This is a key differentiator for two reasons 1.  It allows us to collect data points without the interaction of any human component, which is imperative to collecting accurate data that can be actionable. This data can help pioneer an emerging market of "intraoperative analytics". This provides insights for hospital and medical device companies to capture valuable data regarding instrument utilization, an offering our competitors cannot provide.This was accomplished through our technology that mitigates RF interference between instruments, a drawback of other RFID competitors, which struggle to accurately inventory items due to item orientation and proximity to other surgical items. .2.In short, current competitors must scan items manually in order to create proximity amongst items, in order to accurately inventory items, which M&S Biotics does not. This prohibits them from being able to offer true automation in the operating room and instead can only offer "semi-autonomous" solutions, which fall extremely short when it comes to the value we can provide.


Barriers to Entry

Our current IP provides an adequate barrier to entry, however, our goal is to become a repository of intraoperative analytics. The data sets we acquire will be our most valuable asset.



Traction, Funding and Partners

We have bootstrapped this company to date with a little over $100,000 invested from family, founders, and competitions. We have $25,000 invested in a convertible note from Texas Medical Center but are focusing our efforts on an equity raise through traditional VC's, Angels, and Strategic investors. 



Innovation Details

Intellectual Property Summary

Biotic System, Patent Pending: 62/117,875

RFID tags in close proximity cause interference leading to an inaccurate read.  Current technology requires manual scanning to mitigate this problem and create proximity between instruments to ensure an accurate readout.  M&S Biotics technology improves upon this technological threshold with a combination of design, hardware, and software improvements allowing for increased signal integration and accuracy.  This technology circumvents the instrument proximity issues and continuously scans for RFID tags within an enhanced field with 99.99% accuracy.  This effectively eliminates any manual scanning leading to the first fully passive and continuous system.

 

Clinical Information

 

Statistics

Right now, 14% of the operative time is spent counting surgical sponges alone (no metal instruments) because this is manually done it leads to 1 in 8 surgeries having a counting discrepancy[1][2].

 

For example, less than 20% of the instruments brought into the operating room are even utilized through the course of the procedure[3]

 

 

Many experts agree that this could be a huge impact on healthcare for several reasons.

  • 40% of a hospitals expenditure is directly tied to the operating room. Hospitals live and die by the number of procedures they can perform in day, while having to be extremely sensitive to costs[4].
  • Healthcare productivity moves about half the national average compared to other markets. If we stay on par, by 2027, 57% of the hospitals in the U.S will be operating at a net loss[5].
  • By routinely adding a one-hour case every day, a hospital can increase its margin by $500,000[6].
  • For a typical hospital with an 8-hour surgical day, each 1 percent improvement in OR efficiency is a savings of more than $50,000 per year/per OR; for mid-sized to larger hospitals, which is $1 million if they have 20 ORs[7].

 


[1] Christian CK, Gustafson ML, Roth EM, et al. A prospective study of patient safety in the operating room. Surgery. 2006;139:159–173.

[2] Gibbs, Verna C. "Thinking in three's: changing surgical patient safety practices in the complex modern operating room." World journal of gastroenterology: WJG 18.46 (2012): 6712.

[3] *Stockert, Emily Walker, and Alexander Langerman. "Assessing the magnitude and costs of intraoperative inefficiencies attributable to surgical instrument trays." Journal of the American College of Surgeons 219.4 (2014): 646-655.

 

[4] Guerriero F and Guido R. (2011). Operational research in the management of the operating theatre: a survey. Health Care Management Science 14(1), 89114

[5] Sheiner, L., & Malinovskaya, A. (2016). MEASURING PRODUCTIVITY IN HEALTHCARE: AN ANALYSIS OF THE LITERATURE

[6] Garner, Patrick. "Complexities in the operating room." IIE Annual Conference. Proceedings. Institute of Industrial Engineers-Publisher, 2012.

[7] http://www.healthdatamanagement.com/opinion/how-software-and-analytics-can-boost-operating-room-efficiency

 

Regulatory Status

We need to complete IEC 60601 electromagnetic testing and can then progress to a 510K Class one submission. 

How we will use the funds raised

Product Development

IP Portfolio

FDA Submission/Clearance

Pilot Test on Long Island

Journal Publication

Order Fulfillment

Strategic Hires i.e. CTO, VP of Engineering etc.

Thank You

The healthcare system as we know it is broken, everyone agrees to that, but the true question is what steps can be taken to fix it. At M&S Biotics our goal is to eliminate the outdated process that burden the hospital and inherently cause harm to the patient. With your help, we can alleviate the strain on the healthcare system today. 

Investor Info

Market Size

Currently, there are 5,564 hospitals in the U.S, with an estimated 55,000 operating rooms in total. Our goal is to integrate into 18% of the Tri-State Area (NY, NJ, PA) and the Texas Medical Center, while simultaneously aligning with Premier Inc, where we can distribute to their members. 

Projected 3 Year Growth

By 2020 we are projecting ~8,000,000 in revenues, from integrating into ~300 operating rooms. .

Revenue Model

We employ a bundled PaaS model generating revenue from: 1. Selling bundled packages of our Biotic RFID System and Biotic Insight analytics: • Use past five years of surgical volume, number of operating rooms, and length of contract to establish per operating/month pricing • Pricing ranges from $2,500-$7,500 per operating room/month (Based on above metrics) 2. Selling data to third parties to optimize their services i.e. kit packing companies.

Competitors

RF Surgical Systems- offer a wand/pad that employs low-frequency waves to detect RF tags in sponges. Haldor Technologies - First RFID system created to inventory metal and non-metal surgical items. Labor intensive, high cost, poor UI/UX reviews. Care Tag Surgical - Focus on the throughput of SPD processes and data utilization. 

Traction

We currently have two signed pilots, two letters of interest and a pending sale contingent on finalizing our product development. With current proposals in the pipeline. 

Due Diligence Docs

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