idea-023 · business case
Who pays, from which budget, how much, and 2-4 commercial routes to first revenue — every figure below traces to a copied claim or a declared assumption, and the routes are laid out unranked. Choosing a commercial strategy is a Tier 3 act, so this page presents options and stops.
Intended use: For prescription use by or under the direction of a healthcare professional in hospital, outpatient wound clinic, skilled nursing facility and home health settings, to cleanse, irrigate and mechanically remove debris, exudate and foreign material from acute and chronic dermal wounds in adults (Stage 2-4 pressure injuries, venous and arterial leg ulcers, diabetic foot ulcers, post-surgical and traumatic wounds, and first- and second-degree burns), at each dressing change. A sterile, hypochlorous acid-preserved saline irrigation solution, supplied in a bag for multiple use within a single patient over its labelled in-use period, is delivered at each irrigation session through a single-use, three-nozzle spray head with an integral splash shield that is connected to the bag at the point of use, at an irrigation pressure within 4-15 psi. The hypochlorous acid acts as a preservative of the solution. No claim is made that it kills microorganisms in the wound or treats or prevents wound infection.
Read this first. This case is built on P1 per-patient HOCl bag, the shape recorded in the loop record as a redesign: a per-patient bag of HOCl-preserved saline, labelled the way the one cleared HOCl irrigation bag is labelled claim 122verified, and a single-use, hand-squeezed three-nozzle head with a shield, sold once per irrigation session. Four things govern everything below.
verified claims all verify an obstacle or a bare code. None verifies a payment.
unconfirmed.
The chain is the same in every US setting. A facility or agency writes the cheque out of a supply budget, and that budget is funded by a bundled payment that does not move when it buys this product. One exception sits outside the chain: a bag sent home with the patient, where the patient pays.
apc has no Addendum B cache. That is a tooling gap, and it does not change who buys.
unconfirmed. No connector reaches a Danish source. Nothing in the US chain above stands in for Denmark.
These are the six questions the rubric's Factor 2 collapses into one number. Each has its own evidence position and one basis. No score, no tier and no composite. Read the coverage line first. Then note what the three verified pillars verify: a code that exists, a bundle that packages supplies, and a policy that lists the product as non-covered.
| # | Question | Finding | Basis |
|---|---|---|---|
| 2a | Coding route: Cat I / Cat III / unlisted / HCPCS (Healthcare Common Procedure Coding System) II / none | HCPCS Level II for the bag. Nothing for the head. No procedure code for irrigation. The bag is a wound cleanser, and A6260 "Wound cleansers, any type, any size" exists claim 28verified. That is the whole of what this pillar verifies. No code describes a single-use pressurised irrigation head. A4322, the irrigation syringe code, exists claim 69verified, but whether the head would bill under it is not established. It matters little, because no setting in the intended use bills a supply separately (2d). No CPT (Current Procedural Terminology) code isolates the irrigation step. Irrigation in the same session as a debridement is believed not separately reportable claim 32unconfirmed. The descriptor question on the selective-debridement code returns unverifiable by design claim 31unconfirmed | claim 28verified |
| 2b | Payment adequacy: does the rate clear a stated cost floor | No rate exists, so adequacy moves into the buyer's supply budget, and there it is open. payment A6260 returns refuted: there is no row in the cached CMS payment or DMEPOS (durable medical equipment, prosthetics, orthotics and supplies) files. That fits the non-coverage listing in 2e claim 29verified. The test a payment rate would normally pass is replaced by two tests. First, the price a facility pays must be above its own per-session cost with saline and a syringe claim 161unconfirmed. Second, that price must clear the fully loaded cost of a session at the case's volume and at one-tenth of it claim 188unconfirmed. No bill of materials exists, and no price is set (see the money model) | claim 188unconfirmed |
| 2c | Practice-expense headroom: does the PE portion cover the device | Applies only in the physician-office clinic, and it cannot be tested, because there is no device cost to test against. Office services carry non-facility PE claim 164verified. The selective-debridement code's 2026 non-facility PE portion is $75.19 at CF 33.5675 claim 165unconfirmed. That figure is a decomposition the Verifier read into that claim's note, and it is the allowance for all practice expense in the visit, not a supply budget. Whether saline or a syringe is even an itemised input is that claim's open question. rvu --device-cost was not run, because the cost of a head and a share of a bag is a blank claim 188unconfirmed, and any figure typed in would be invented | claim 165unconfirmed |
| 2d | Site of care and bundling: office/facility differential, DRG or APC packaging | Packaged everywhere the file has checked, so the facility is paid nothing extra however much the system costs. OPPS packages supplies claim 65verified. The SNF per diem is payment in full claim 66verified. The home health episode is payment in full claim 67verified. The inpatient MS-DRG conclusion is not in the regulation text claim 136unconfirmed. Device pass-through excludes supplies furnished incident to a service, and whether CMS would class this system that way is open claim 137unconfirmed. The practitioner's office/facility differential on the debridement code ($102.05 non-facility against $31.22 facility) is real, but it pays the clinician, not for the supply claim 165unconfirmed. apc could not say whether the hospital-based clinic visit is itself packaged, because there is no Addendum B cache. drg was not run, because no single DRG is in question: wound care spreads across every inpatient case | claim 65verified |
| 2e | Coverage: has any payer agreed to pay for this indication | Medicare has declined, in writing, for the one scenario where a payer could pay: a cleanser used at home. Policy article A54563 lists wound cleansers (A6260) and irrigating solutions as non-covered under the surgical dressing benefit, because they are not dressings claim 29verified. Whether any other Part B benefit pays is not established claim 166unconfirmed. Payers outside Medicare (state Medicaid fee schedules, commercial policies) were not searched. REQ-0202 Outside Medicare asks research for them, and no manifest row exists. Coverage would change home-dispensed bags only. It would not change the facility settings, which buy inside bundles (2d). coverage A6260 returns refuted, but that describes the cache: the policy article has a blank codes column | claim 29verified |
| 2f | Ex-US pathway: DE NUB/G-DRG, UK NICE (National Institute for Health and Care Excellence)/OPCS-4 | Permanently unconfirmed. The ex-US market that matters here is the referrer's, Denmark, and it is a tender market, not a reimbursement market. The question in Denmark is not coding or coverage but whether a tender lot admits the product and what it weighs. Region Nordjylland buys HOCl irrigation fluid as a lot of its own claim 113unconfirmed, and whether the bag alone conforms to it is open claim 170unconfirmed. This case assumes the buyer pays from its own budget with no separate reimbursement [assumption A3 FDA 510]. A CE mark comes first: Class IIb or Class III (FDA device class III) for the solution claim 21unconfirmed, claim 135unconfirmed. payment A6260 --jurisdiction DK returns unconfirmed: "No primary-source connector for jurisdiction 'DK'". DE NUB/G-DRG and UK NICE/OPCS-4 were not examined, and no claim in the file speaks to either. The one UK figure in the file is a visit count, not a payment fact claim 111unconfirmed | [assumption A3 FDA 510] |
Pillars on verified claims: 3/6 · on assumptions: 1 · queued as research: 0
The other two pillars, 2b and 2c, rest on unconfirmed claims. The three verified pillars verify a code's existence (2a), a bundle (2d) and a non-coverage listing (2e). Not one of them verifies that money flows to the product. A reader who counts 3/6 as half a pathway has read the line backwards. What is verified is that the product is a supply bought inside a fixed payment, which is the premise of the whole case.
Three distinctions this section keeps apart:
unconfirmed. For Denmark, the tender documents would settle more than any connector could claim 170unconfirmed, and they need a human download (REQ-0201 For Region Nordjylland's joint wound tender).
Verdicts from cold runs during this build, recorded whatever came back:
python3 -m connectors hcpcs A6260 --jurisdiction US → verified, "Wound cleansers, any type, any size". It travels as claim 28verified.
python3 -m connectors payment A6260 --jurisdiction US → refuted, "No payment row for A6260 in the cached CMS file(s)". This is consistent with claim 29verified. It is a statement about a cache and is not used as a basis.
python3 -m connectors coverage A6260 --jurisdiction US → refuted, "No NCD (national coverage determination) or LCD (local coverage determination) in the cached coverage file names A6260". This is a cache linkage gap, as the Verifier recorded at claim 29verified and claim 166unconfirmed.
python3 -m connectors procedures A6260 --jurisdiction US → refuted: no national row in either cached release. The product is bought by facilities, not billed, so the absence says nothing about irrigation volume.
python3 -m connectors payment A4217 --jurisdiction US and payment A4322 → verified, July 2026 DMEPOS allowed amounts, as recorded at claim 69verified.
python3 -m connectors rvu 97597 --jurisdiction US → verified, the 2026 PFS (physician fee schedule) decomposition. That split is recorded in the note at claim 165unconfirmed.
python3 -m connectors apc 97597 --jurisdiction US and apc A6260 → unconfirmed: "No local cache at data/opps_addendum_b.csv". This is a tooling gap, not a finding.
python3 -m connectors cpt 97597 → unverifiable: descriptors are AMA-licensed. The code number is used only as a key for rvu. No descriptor is reproduced here.
python3 -m connectors payment A6260 --jurisdiction DK and coverage A6260 --jurisdiction EU → unconfirmed: no primary-source connector for either jurisdiction. That is the correct refusal.
The size comes from the market model and is not rebuilt here. Its coverage line reads one leg of ten on a verified claim, eight queued as research and one on an unconfirmed claim. It computes no band. It splits the chain into two quantities: a head pool, one head per session, and a bag pool, sessions divided by sessions served per bag. This case quotes the legs it needs and sets out the unit economics the file can support. No price, volume, share or margin is supplied where the file has none.
| Line | Figure | Backing |
|---|---|---|
| What is sold, per session | one single-use head assembly (spike, line, hand-squeezed chamber with check valve, three-nozzle head, integral shield) | claim 143verified |
| What is sold, per patient | one HOCl-preserved saline bag, labelled for multiple use within a single patient over its in-use period, as the cleared incumbent bag is labelled | claim 122verified |
| Why the bag is priced against parity | on the label HOCl only preserves an opened bag, which is what every incumbent HOCl bag already does | claim 119verified |
| US Medicare FFS (fee-for-service) beneficiaries with any wound, 2019 (market model leg 1) | 10.5 million, all wound types, fee-for-service only | claim 34verified |
| Professional irrigation sessions per patient-year, and the share done by irrigation today (legs 5-6) | not established; no US figure in the file | claim 36unconfirmed |
| Share of wound encounters using pressurised irrigation (P0 the original shape wording of leg 6) | not established | claim 38unconfirmed |
| Sessions served by one bag, by setting (leg 9) | not established; turns on an in-use study on a bag that does not exist | claim 189unconfirmed |
| Sessions per bag in an outpatient clinic specifically | not established; needs the incumbent bag's labelled in-use period (not in either 510(k) (premarket notification) summary) and a US visit interval | claim 163unconfirmed |
| Neither cleared HOCl bag's 510(k) summary states an in-use period | confirmed absent from K232080 (an FDA 510(k) clearance number) and K251757 summaries | claim 169verified |
| Head comparator, per session (Medicare allowed amounts, not facility prices) | 500 mL saline $3.80-$4.47 plus irrigation syringe $3.78-$4.35, so $7.58-$8.82 together by this case's arithmetic; neither is paid separately in any facility setting | claim 69verified |
| Bag comparator, per container (one retailer's list price on one day, both flagged unavailable) | Vashe 1 L about $141.66 per bottle; Puracyn Plus 32 oz $440.98 per case of six, about $73.50 per bottle by this case's arithmetic | claim 105verified |
| Contract price for an HOCl cleanser | not retrieved; the VA FSS catalogue entry is believed to carry one | claim 131unconfirmed |
| Context only, different setting and device class | one institution's pulsed saline lavage protocol cost of $38.28 in arthroplasty | claim 109verified |
| Price per head to the buyer | not set. A Tier 3 decision. Its test is that buyers pay more per session than their own cost with saline and a syringe | claim 161unconfirmed |
| Price per bag to the buyer | not set. Same test, spread over the sessions the bag serves | claim 161unconfirmed |
| Manufacturer net per unit | the buyer's price less the distributor margin and any GPO fee; no figure for either | [assumption A1 Assumption] |
| Manufacturer revenue per session | head net plus bag net divided by sessions per bag; every term blank | [assumption A1 Assumption] |
| Fully loaded cost per session against the price | not established; no bill of materials, supplier quote or price exists. The proposition must hold at the case's volume and at one-tenth of it, including where one bag serves one session | claim 188unconfirmed |
| Annual head and bag volumes, years one and three | not established; no share leg exists (market model leg 10 is queued as research) and the buyer premise is unchecked | claim 161unconfirmed |
| Gross margin | not established; it is the gap between the two blanks above | claim 188unconfirmed |
| Displaced PPE per session | none, on this case's reading | [assumption A2 FDA 510] |
| Reconciliation only, never a ceiling: total Medicare wound spending, 2014 | $28.1-96.8 billion, all wound care | claim 35verified |
| Reconciliation only: one HOCl incumbent's whole US revenue, FY2025, all products | $2.611 million, down 15% | claim 106verified |
| Context only, debridement not irrigation: Medicare FFS Part B services, 2024 | 684,939 (97597), 2,042,234 (11042), 506,331 (11043), 650,800 (11045) | claim 68verified |
Read the bolded rows together. The head's comparator costs single-digit dollars per session in Medicare's allowed amounts claim 69verified. The bag's comparator costs tens to low hundreds of dollars per container at one retailer's list price claim 105verified. P1 per-patient HOCl bag puts the per-session revenue on the head, so the head is priced against the cheap comparator. P1 per-patient HOCl bag's design added a squeeze chamber and check valve to the head to reach the pressure window claim 143verified, which adds cost to the very unit that faces the cheapest comparator. Whether that inequality can close is the joint question of claim 161unconfirmed and claim 188unconfirmed. Neither has a number on either side.
The cadence differs by setting, and the case does not average it away. Where the patient stays (SNF, inpatient, home health), one bag spreads over many sessions claim 189unconfirmed. In a visit-based outpatient clinic, it may serve one session and be discarded, unless someone holds it between visits claim 163unconfirmed. Then every clinic session costs a head plus a whole bag. That is P0 the original shape's economics with the waste shown. The choice of custody (REQ-0235 For the P1 per-patient HOCl bag) and fill volume belongs to the owner.
What REQ-0244 For P1 asks, answered in this department's field only:
The answer leaves Operations' cost test (claim 188unconfirmed) with nothing to compare against. That is a visible blank, not a number.
State the market and adoption verdicts explicitly, from cold runs during this build:
python3 -m connectors market "The annual US revenue available to a single-use three-nozzle hand-squeezed wound irrigation head sold once per irrigation session, plus a per-patient hypochlorous acid-preserved saline bag, bought from facility and agency supply budgets inside bundled payments in hospitals, outpatient wound clinics, skilled nursing facilities and home health" → unverifiable: "no free, authoritative, machine-queryable source. Stays unconfirmed permanently unless a human attaches a licensed report". The market model's own run returned the same verdict. So did the P0 the original shape market claims claim 36unconfirmed, claim 37unconfirmed.
python3 -m connectors market "The annual Danish public-tender spend on hypochlorous acid wound irrigation fluid across regions and municipalities" → unverifiable, the same verdict. The connector takes no jurisdiction flag. It would refuse a Danish source in any case.
python3 -m connectors adoption "US facility and agency purchasers would replace saline-and-syringe irrigation sessions with a per-session single-use HOCl bag-and-head system at a price above their current per-session cost" → unverifiable: "needs primary research (interviews, survey, published preference study) ... Do NOT substitute a model's own estimate of stakeholder behaviour". This is the verdict already recorded at claim 161unconfirmed.
python3 -m connectors adoption "Danish regional and municipal tender buyers would admit a single-use wound irrigation head into a wound-care tender as its own priced product alongside HOCl irrigation fluid" → unverifiable, the same verdict. The checkable twin is the lot specification claim 171unconfirmed.
The revealed-behaviour twins of the class-3 questions are already filed. The market model filed the share row and the realized-price row. The assessment filed the analog row on premium single-use accessories inside bundled budgets. This case files no further rows.
Four routes to a first dollar, in no order. Each sells a different unit to a different buyer. None is ranked here, and choosing between them is a human decision. Each route's kill condition is the finding that would end that route specifically. A finding that ends all four, such as no rights to any hardware, sits under every one of them and is not repeated as a kill.
Every assumption cited above is listed here, with what would settle it and who could run it. All seven were appended to the candidate as unverified claims 196-202 via append_commercial_claims.py.
| # | Assumption | Falsifier | Owner |
|---|---|---|---|
| A1 Assumption | A new US maker sells the head and bag to facilities through a med-surg distributor or GPO contract, so its net per unit is the facility's price less a distributor margin and any GPO administrative fee (claim 196unverified) | A distributor or GPO supplier agreement offered for a single-use wound-care supply of this kind, or published GPO administrative-fee disclosures for the med-surg category. Either names the deduction. Direct sale to an IDN at the facility price would falsify it | 80_commercial with a distributor contact the owner authorises; the disclosure half is desk research |
| A2 FDA 510 | An integral splash shield does not relieve the employer's OSHA duty to provide masks with eye protection or face shields during wound irrigation, so the system displaces no face or eye PPE (claim 197unverified) | An OSHA letter of interpretation or compliance directive under 29 CFR 1910.1030 that recognises an integral irrigation shield as substituting for face and eye protection would falsify it. REQ-0216 Does 29 CFR 1910.1030 asks this | Regulatory (REQ-0216 Does 29 CFR 1910.1030) |
| A3 FDA 510 | In Denmark, HOCl irrigation fluid and irrigation hardware used in regional hospitals or municipal home nursing are paid from the buyer's own budget under its tender contract, with no separate national reimbursement, DRG add-on or patient co-payment (claim 198unverified, jurisdiction DK) | A Danish market-access read of the DRG financing rules for regional hospitals and of the rules on supplies in municipal home nursing, or the U397-25 contract terms. Any separate tariff, add-on or patient share falsifies it | The referrer, or a Danish market-access adviser the owner engages; no connector reaches it |
| A4 Generator's belief | The largest pre-revenue cost item is the bag's sterile fill: technology transfer, registration lots, and real-time stability and worst-case in-use data. It exceeds head verification, sterilization validation, tooling and both 510(k) submissions (claim 199unverified) | A costed critical-path plan built from a filler's quote and a head development quote, the plan claim 194unconfirmed describes. A head line larger than the bag line falsifies it | Operations & NPI (new product introduction) with Technology; the supplier requests for quotation need owner authorisation |
| A5 FDA 510 | No supplier outside the lot-50 award can supply HOCl wound irrigation fluid to Region Nordjylland and its municipalities under the joint tender before the lot is next tendered (claim 200unverified, jurisdiction DK) | The U397-25 framework agreement terms: exclusivity, number of suppliers per lot, any cascade, mini-competition or extension clause. A clause admitting new suppliers mid-term falsifies it | The owner or referrer, by human download of the tender documents (REQ-0201 For Region Nordjylland's joint wound tender); the TED host blocks automated fetch |
| A6 21 CFR 880.6960 classifies an irrigating… | US facility purchasers pay more per session for a single-use, hand-squeezed three-nozzle shielded head that fits bags they already stock than for a 35 mL syringe with a separate shield accessory (claim 201unverified, evidence class 3) | First the revealed-behaviour twin: what share of US facilities stock a shield accessory or a hand-squeezed jet beside plain syringes, and at what unit price. The market model's share row and realized-price row ask this. Then a head-only concept card added to the REQ-0225 Design buyer study, read against its pre-fixed yes criterion | 45_research for the twin; owner-authorised fieldwork for the study |
| A7 FDA 510 | At least one US maker of HOCl solution in bags or spikeable containers (Innovacyn, Urgo, Mölnlycke or Sonoma) would buy, license or co-market a single-use pressurised head built to fit its own container (claim 202unverified, evidence class 3) | First the twin: whether any of the four has co-marketed, co-packaged or in-licensed third-party irrigation hardware since 2015. Its own compatibility testing with third-party lavage systems is on record (claim 169verified). Then a non-confidential approach to each of the four for a term-sheet response | The owner. Contacting an incumbent discloses the opportunity, so no agent can run it |
Every figure the case needed and the file does not carry, gathered in one place. These are the work items.
unconfirmed on jurisdiction.
unconfirmed.
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