Manufacturer’s Opinion Letter on sam Pro 2.0 Rental Costs and Guidelines for sam Distributors (August 2018)

Summary

This letter from the manufacturer, addressed to sam Distributors, outlines pricing, warranty, and cost guidelines for renting the sam Pro 2.0 medical device through insurance claims. It details the base unit price, included items, warranty terms, and expected costs for consumables, replacements, delivery, and cleaning. The letter also provides estimates for patient non-returns and denied claims, and recommends a daily rental rate for patients. The document is intended to guide distributors in managing costs and setting rental prices for the sam Pro 2.0 units.

EX-10.2 5 exhibit10_2.htm MANUFACTURES OPINION LETTER Converted by EDGARwiz



Manufacture’s Opinion Letter

Date:

August 2018

To:

sam® Distributors

From:

James S. Molinaro, Chief Commercial Officer

Re:

sam® Pro 2.0 Rentals - Consumable and Replacement Costs

For distributors who are renting the sam® Professional units through Insurance Claims; the following are our guidelines based upon our experience with renting the sam® device to multiple patients.

1.0

BASE UNIT COST and WARRANTY

1.1

Base sam® Pro 2.0 Unit Price to the Distributor (SA271): $2,822

1.2

Base Unit Includes: sam® Pro 2.0 Unit with Dual Applicator/Transducer and Charger

1.3

Warranty: 12-months or 9 Rentals on Applicators/Transducers from Date of Shipment from Factory

2.0

CONSUMABLE ITEMS; Including Damage and Loss

2.1

sam® Gel Capture Patches (UB-14-24): $120/Pack (24-pcs per Pack); 2-Pcs per Day

2.2

sam® Power Controller: replacement or loss after 4-rentals; $230/unit

2.3

sam® Applicator: WC patients accidentally throw the Applicators away with the Coupling Patch; our opinion is this will happen at least two-times during a 12-month rental usage; 2-Applicators per sam® Professional Unit: $295/Applicator

2.4

sam® 2-Oz Tube of Gel (S1007-AC): issued with each Patient Rental; $6/Tube

2.5

sam® Y-Adaptor (S1003-AC): WC patients accidentally break the Y-Cable when removing the Applicators; our opinion is this will happen two happen at least three during the 12-month usage; 2-Applicators per sam® Professional Unit: $45/Y-Adaptor

2.6

sam® Charger (S1005-AC): Typically, patients lose the Charger; would expect for this to happen at least twice per year; 2-Applicators per sam® Professional Unit: $75/Charge






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3.0

PATIENT DISPENSING, RETURNS and CLEANING COSTS

3.1

Delivery of sam® Professional Unit/Patches to Patient and Instructions of Use:

3.1.1

Travel Time (Nominal 30-miles RT): 30-miles x 0.575 = $17.25

3.1.2

Instruction of Use to Patient (30-60 minutes): $75 Labor Cost

3.2

sam® Unit Return; Shipping Box + Pre-paid Postage: $55/Patient Rental

3.3

Patient Follow-up Calls (2-weeks & 4-weeks): $75 Labor Cost

3.3

sam® Unit Inspection and Clean-up:

3.3.1

Cleaning Supplies/Swabs: $15/Patient Rental

3.1.2

Inspection, Clean-up and Re-Pack (30-60 minutes): $75 Labor Cost

4.0

PATIENT RENTALS DURING 18-MONTHS

4.1

Minimum Patient Rental: 36-days

4.2

PATIENT DISPENSING, RETURNS and CLEANING COSTS: 5-days/Rental

4.3

MAXIMUM PATIENT RENTAL DURING 12-MONTHS: 10 Rentals

5.0

PATIENT NON-RETURNS and DENIED CLAIMS

5.1

Patient Non-returns: Of the 10 Patients Renting the units it should be expected that at least 1-Patient will not return the sam® Pro 2.0 unit

5.2

Denied Claims or False Claim: Of the 10 Patients renting the units it should be expected that at least 1-Patient submits a “false claim” or the claim is denied

5.3

Net Rentals per sam® Professional unit: 8-Rentals










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6.0

SUMMARY RENTAL DISTRIBUTOR COSTS: 12-month Usage (8-Patient Rentals)

Description

Item Number

Qty.

Unit Price

Extended Price

sam® Pro 2.0

SA271

1

US$ 2,822.00

$ 2,822.00

sam® Gel Capture Patches PACKS (11-Rentals x 36-Days x 2 Patches/Day)

UB-14-12

24

US$ 120.00

$ 2,880.00

sam® Sport Controller

N/A

2

US$ 230.00

$ 460.00

sam® Sport Applicators

N/A

4

US$ 295.00

$ 1,080.00

sam® 2-Oz Tube of Gel

S1007-AC

8

US$ 6.00

$ 48.00

sam® Y-Adaptor

S1003-AC

2

US$ 90.00

$ 45.00

sam® Charger

S1005-AC

2

US$ 75.00

$ 150.00

sam® Delivery and Instruction for Use

--

8

US$ 92.25

$ 738.00

sam® Unit Return, Shipping Box/Pre-Pay

--

8

US$ 55.00

$440.00

sam® Inspection and Clean-up

--

8

US$ 92.25

$ 738.00

Patient Non-returns

SA271

1

US$ 2,822.00

$ 2,822.00

 

 

 

TOTAL

 


7.0

SUGGESTED MONTHLY RENTALS TO PATIENTS

7.1

Total Estimated Distributor Costs for 8-Patient Rentals: $ 12,223.00

7.2

Daily Cost per Patient: $12,223.00/8-Patients x 36-days = $ 42.44/Day

7.3

Recommended Cost/Day Rental to Patient: (40% Mark-up) $ 59.42/Day










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