each quarter went on.
One problem, though, was that the collections cycle for DiscoCare
was much longer than that of a typical medical device distributor that
sold to ASCs and hospitals. It
often took several months or
more than a year for PI cases to
settle, and DiscoCare didn't get
paid (nor did the surgeons and
other healthcare providers) until
cases settled. The good news
was that a very high percentage
of cases settled — and at a high
price. The bad news was that
DiscoCare had plenty of product
on hand to meet its needs.
Nevertheless, ArthroCare needed
to meet Wall Street expectations,
so we devised a plan where
DiscoCare would place addition-
al orders at the end of each quar-
ter in exchange for exclusive distributorships in additional states.
They were reluctant, but they relented. The orders shipped and the
revenue was recognized.
As the year wore on, I was more and more exhausted. The number
of DiscoCare cases completed and the amount DiscoCare collected
for SpineWand sales was increasing each quarter. DiscoCare was also
having modest success getting private insurance and workers' com-
pensation cases approved and completed.
Expand the DiscoCare model
6 7
A U G U S T 2 0 1 5 | O U T P A T I E N TS U R G E R Y. N E T
z PATHOLOGICAL PEOPLE-PLEASER David
Applegate, seen here in a photo taken about 20 years
ago, says he always had an intense desire to be liked, to
fit in and to please people, traits that left him vulnera-
ble to participate in the illegal channel-stuffing scheme.
Lue
Baty
