WinnMed Approves $2.5M Lease for Da Vinci 5 Surgical Robot

Local voices matter. Help us amplify them by contributing to your local newsroom. DECORAH — The WinnMed Board of Trustees unanimously approved a capital asset purchase Wednesday to lease the Da Vinci 5 robotic surgical system — a decision hospital leaders say will enhance patient care, improve recruitment, and expand services in a region with limited access to robotic surgery. "Ultimately today, we are recommending a board action that the board approve investing in the Da Vinci 5 technology," said Chief Administrative Officer Steve Slessor. "That's the latest Da Vinci platform and also the Da Vinci platform that was here for the roadshow," Slessor said, referencing a recent hands-on demonstration at the hospital in which board members were able to see the equipment for themselves. The lease, expected to cost $384,000 annually over seven years, will be included in the hospital's capital budget. "We are not coming to you to ask for $2.6 million of additional dollars beyond what we have historically been asking for a capital budget," Slessor said. The hospital will seek a certificate of need from the state before proceeding. "We learned that we do need to go for a certificate of need approval through the state of Iowa in order to officially purchase the Da Vinci robot," Slessor said. "That process has started." He noted that the application would be submitted immediately, with hopes of approval within 90 days. This means the robot would arrive slightly later than initially expected. "Instead of sitting here ahead of July 1, which is what I thought a week ago, it's probably more of a mid-fall [arrival]," Slessor explained. The push for robotic surgery is fueled in part by physician demand. "This is kind of the way of the future," said Dr. Christopher Winters, M.D., a general surgeon at WinnMed. "There are advanced cases I'm sending out that I would probably take on if I had a robot here." Dr. Erik Brink, D.O., cited improved ergonomics and surgical outcomes. "It gives us the leverage for more longevity," he said, referring to the toll long procedures take on surgeons' bodies. "Now I'm able to just hand sew that into the patient without driving screws into the muscle. It's become outpatient surgery… It saves the hospital stay. It saves the pain levels." WinnMed has already built out operating room infrastructure to support the system. "The construction is already done. There's a space that already exists for the robot and that's been vetted and validated," Slessor said. Administrators compared the newer Da Vinci 5 with the older Xi system, noting a $500,000 cost difference but similar annual payments due to a longer lease. "When it's relatively cash flow neutral… it seems logical to invest in the latest technology," Board Member Mark Jensen noted. Additional benefits include recruitment and retention of surgeons trained exclusively on robotic systems. "That's what they learn on, and they're gonna need that when they come out," Slessor said. "We're going to lose out on potential candidates if we don't have the robot here." The robot could generate $150,000 to $200,000 in additional revenue annually through 15 to 20 new cases and potential market share gains. "Looking at the Iowa Hospital Association data, there's about 350 cases available in our broader market that are done elsewhere at Iowa hospitals," Slessor said, excluding cases that are sent to Rochester or La Crosse. "We're not going to pick up 300 of those cases, but can we pick up 60 of those 350? Why not?" Trustee Jan Heikes, who was absent from the meeting, voiced support in advance. "She was very impressed, and she asked that we share with the board that if she were here, she'd be voting for it," Slessor said. WinnMed's insurance provider did not raise liability concerns about robotic procedures. "Robotic devices have improved outcomes for many types of procedures," Slessor quoted from the carrier's feedback. The insurer did suggest the hospital may need to expand its umbrella policy. "It came back quite a bit higher. It came back double," one administrator said, estimating an increase of up to $125,000. Revenue protection was also discussed. "The cases that can be done robotically that we do here make up about $3.4 million of net revenue," Slessor said, adding that WinnMed's status as a critical access hospital enables it to recoup roughly 50% of depreciation through cost-based reimbursement. Following discussion, the motion passed unanimously. "We'll start the process," Slessor concluded. "Thank you so much." Unlock a world of knowledge! Sign up for free DecorahNews.com newsletters and receive local news, local events and everything that is happening in and around Decorah.