RevMed is a first-of-its-kind platform that connects healthcare facilities across the USA through a secure marketplace that enables them to purchase critical supplies, monetize excess inventory, and save money. Pulse 2.0 interviewed RevMed CEO Daniel Crittenden to learn more about the company.
Daniel Crittenden’s Background
What is Daniel Crittenden’s background? Crittenden said:
“I graduated with a B Sc. in Computer Science from McGill University followed by the Chartered Financial Analyst designation. I had a brief stint in software development programming video games, before working in capital markets at Investment bank Canaccord Genuity for a decade. Afterward, I was recruited to a family office in Miami where I worked briefly before jumping into the deep end on early-stage investments.”
“Before RevMed, I was CFO of one of the family office investments, taking it from seed-stage to over 140 employees, a $30 million revenue run rate, and cash flow positive in under three years. My passion is turning ideas into reality, and I’m excited to further execute this through RevMed’s developments and successes.”
Formation Of RevMed
How did the idea for RevMed come together? Crittenden shared:
“It happened years ago when two of our co-founders were working together. One was an aspiring orthopedic surgeon doing his fellowship and the other was his medical device sales rep. The surgeon was keen to hone his surgical skills and as a result, his rep generously gave him a bunch of expired implants to practice on. Once they realized the cost of these devices, a light bulb went off and they realized the problem of excess inventory could be an issue worth tackling!”
“The second largest cost component for hospitals after salaries is equipment and supplies. Hospitals and ASCs will find themselves stuck with excess supplies and equipment for a variety of reasons, many of which are outside of the supply manager’s control, like physician departures or preference changes.”
“The secondhand market for surgical supplies and equipment is inadequately serviced, and at RevMed we are building solutions to address this problem. RevMed enables hospitals and surgery centers to connect directly with one another in a first-of-its-kind, peer-to-peer marketplace. This platform allows providers to transact on excess inventory for a fair price and offload supplies to facilities that need it, guaranteeing a win for both sides of the equation. RevMed can help hospitals recoup sunken supply costs and buy medical supplies at a discount, ultimately freeing up more money for all providers to spend more time focusing on improved patient outcomes.”
Favorite Memory
What has been your favorite memory working for the company so far? Crittenden reflected:
“The day we crossed 100 users was a fond memory. It was a sign that this company had potential, and people believed in the concept. We are now closer to 1000 users; we are still in the early days but growing at an accelerated pace.”
Core Products
What are the company’s core products and features? Crittenden explained:
“RevMed is a platform that connects healthcare facilities across the US through a secure marketplace that allows them to purchase critical supplies, monetize excess inventory, and save money.”
“As a healthcare facility looking to buy, you can browse our marketplace for critical medical equipment supplies at discounted prices, purchase supplies from peers, and create watchlists to monitor supplies for the best price.”
“As a seller, you can list excess inventory on our platform and keep most of the proceeds from any sale. Our simple shipping process allows facilities to print a packing slip and shipping label directly from their account. We handle all collections and remittance of sales tax, to make the process hassle-free. RevMed’s dedicated team of area managers is available to support users and avoid creating unnecessary work.”
“We have put an enormous focus on making our software and processes very easy for our users, since we realize their primary job is providing patient care. RevMed’s combination of user-friendly software and customer service lets our clients rest assured that we will get the best deals for them, as buyers or sellers.”
Challenges Faced
What challenges have Crittenden and the team faced in building the company? Crittenden acknowledged:
“Probably the biggest challenge for us is just the fact that healthcare systems aren’t wired to necessarily sell medical devices and equipment. They are created to provide world-class healthcare. Changing the behavior of supply chain folks in an industry like healthcare has certainly not been easy. There are two main reasons we’ve been able to overcome this hurdle.”
“For one, the enormity of supply spend and the amount that gets stranded is staggering; especially when compared to the salaries of the staff who are often overworked and managing this spend. Highlighting this fact to CFOs or people with ownership at our target facilities is step one. Step two is continually striving to make the process of selling and/or buying on RevMed as simple as possible. This way, the “make work project” that people feared, is far less than expected. Our clients are usually pleasantly surprised with the outcomes of working with us.”
Evolution Of RevMed’s Technology
How has the company’s technology evolved since launching? Crittenden noted:
“We’ve spent the last three years continually refining our proprietary tech to streamline the process for healthcare facilities to transact with one another. Since the RevMed Marketplace launched, we have been constantly soliciting feedback from our clients and have added numerous new features and automated tasks to simplify the process for both sides of the transaction.”
“One notable feature we are proud of is the ability for large health systems to trade internally within their network for certain items. If there are no takers within their network, they simply flip a switch and post it for sale to RevMed’s national marketplace.”
Significant Milestones
What have been some of the company’s most significant milestones? Crittenden cited:
“Since launching the RevMed Marketplace in late 2022, we have seen the platform consistently expand as more health systems learn how easy it is to recoup its sunken supply costs with RevMed. About a year later in 2023, RevMed had its first major health system sign-up on the platform, with 50 addressable locations in Texas. In 2023 RevMed also began expanding to multiple states. There are now hundreds of active users who have saved hundreds of thousands of dollars in wasted supply spend.”
Customer Success Stories
When asking Crittenden about customer success stories, he highlighted:
“Within our home market of DFW, we have had some incredible success lately with surgery centers (ASCs) that closed down. When a surgery center closes, it is often due to a lack of case volumes or insurance contracts and a voluntary decision by the ownership group.”
“We were recently connected with a group that had closed down and had about $1 million worth of lightly used, high-quality surgical equipment and instruments in an offsite storage facility. The ownership group was mostly comprised of successful doctors. They weren’t in significant financial duress but had no great avenue to sell these stranded items. Our DFW sales rep has done an excellent job finding buyers for these items for a fair market price, and all parties have come away from the transaction extremely happy! This is just one example of the symbiosis that RevMed can provide for its users and it ended up being a great referral source for us.”
Funding/Revenue
When asking Crittenden about the company’s funding and revenue details, he revealed:
“The company has raised approximately $1.5 million to date and has been funded by friends and family thus far. We are converging on our first $1 million in transaction volumes on the site.”
“Now that we have proven the model works, we are starting the process of seeking out a strategic investor to anchor a Series A financing (in the $3 million-$5 million range) and help accelerate our growth. Internally we like to say that we need to get to 10 times, and then another 10 times our current volumes. It doesn’t take a math genius to realize this means 100 times. We think it’s highly achievable and believe that if we succeed in this goal, our growth will still be accelerating at that point due to our business model exponentially improving as more users join the site.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Crittenden assessed:
“There are approximately 7,300 hospitals and 9,100 ambulatory surgery centers (ASCs) in the US alone. Supply spending in the U.S. alone is in the hundreds of billions of dollars. While it is difficult to pinpoint exactly how much money is wasted on excess supply spend due to inadequate tracking, a report by The National Academy of Medicine has estimated the healthcare system wastes around $765 billion a year.”
“Supply spend is the second highest cost for hospitals after wages, so there is ample opportunity to reduce costs in an area that isn’t properly addressed.”
Differentiation From The Competition
What differentiates the company from its competition? Crittenden affirmed:
“The RevMed marketplace is a revolutionary approach to addressing the issue of excess medical inventory that hospitals and ASCs continually struggle with. Alternate options for offloading excess inventory are limited and not ideal for recouping costs. Traditional liquidators and third-party resellers offer such low amounts to prospective sellers that hospitals/ASCs often don’t bother selling to them. Other options include donating supplies to charity or dumping them after they expire.”
“RevMed’s peer-to-peer marketplace allows facilities to directly connect with each other to buy critical supplies and monetize excess inventory, supporting each other’s bottom line in the process. Facilities have full control of listing and pricing items so they can receive a fair market price for inventory they no longer need.”
“None of our competitors facilitate this direct connection between healthcare facilities. Our low-fee model combined with our proprietary software and customer service is a unique product offering.”
Future Company Goals
What are some of the company’s future company goals? Crittenden concluded:
“RevMed is working to continue growing its user base and expanding our peer-to-peer network to more states. Currently, we are operating in 34. As our user base expands we are also looking to grow our support network of area managers.”
“Integrations and/or partnerships with existing order management systems are something we’d like to incorporate in the future. It would make sense to develop proactive software solutions that seamlessly integrate with the RevMed marketplace to help our clients identify excess inventory before it is too late and that inventory becomes a complete write-off.”
