Continuous External Tissue Expander

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Continuous External Tissue Expander Facilitates rapid tissue movement to automatically reduce or re-approximate wounds Never needs re-tightening after initial application! 1

Potential Annual Hospital Cost Savings Provided by DermaClose with Five Cases per Month Before >$279,000 Application versus NPWT Intra-Operative (VAC) Therapy >$559,000 versus Vessel Loops >$671,000 versus Skin Grafting Patient returned for final wound closure Post on Application Day 4. of the DermaClose with immediate reduction in wound size 2

Example of Potential Hospital Cost Savings Complex Wound Treatment Method Average Treatment Days 1 Inpatient Cost per Patient Monthly Costs for Treating Complex Wounds Annual Costs for Treating Complex Wounds Monthly Cost Savings from Using DermaClose Annual Cost Savings from Using DermaClose Cost Savings Over Five Years from Using DermaClose DermaClose Continuous External Tissue Expander 5 $11,650 $58,250 $699,000 Skin Grafting 9.8 $22,834 $114,170 $1,370,040 $55,920 $671,040 $3,355,200 Before Application NPWT (VAC) Therapy 7 $16,310 $81,550 $978,600 $23,300 $279,600 $1,398,000 Vessel Loops 9 $20,970 $104,850 $1,258,200 $46,600 $559,200 $2,796,000 Assumptions: Total complex wound cases treated with DermaClose per month as alternative to other approaches: 5 Hospital expenses for a patient floor day (non-icu): $2,330 Product cost for DermaClose External Tissue Expander Kit: $999 Additional DermaClose cost benefits that were not included: Increase in DRG reimbursement typically covers product costs Reduction in the cost of nursing care versus what is needed for VAC dressing changes Time and cost to tighten vessel loops Post Application eliminated Patient returned for final wound closure on Day 4. of the DermaClose with immediate reduction in wound size Model and cost savings scalable to your institution Potential for reduced infection rate savings on closed wound versus open wound 1. Cost savings data from independent study presented at Northeastern Society of Plastic Surgeons, Sept. 2013. and Technomics 3

Before Application Independent Study Presented at NESPS 2013 Meeting Conclusion DermaClose enabled a rapid aesthetic delayed primary closure in 93% of fasciotomy wounds. The use of DermaClose at Albany Medical Center demonstrated cost savings (per wound) of $4,622 versus NPWT (VAC) treatment and $9,117 versus the use of vessel loops. Patient returned for final wound closure Post on Application Day 4. of the DermaClose with immediate reduction in wound size 4

Additional DermaClose Cost Savings Reduces trips to the OR for VAC changes and I&D procedures Before Application Intra-Operative number of NPWT VAC dressings used use of expensive biologic grafts time to closure for open wound patients, which may reduce the risk of infection may reduce risk of wound dehiscence Patient returned for final wound closure Post on Application Day 4. of the DermaClose with immediate reduction in wound size overall cost of treating complex wound patients 5

Peer Reviewed Journal Articles October 2015 Henry Ford Health System Management of Sternal Wound Dehiscence August 5 th, 2015 Duke University Medical Center External Tissue Expander in Total Ankle Arthroplasty September 2014 Mayo Clinic, Albany Medical & Walter Reed ALT Flap Donor Site Closure More than a 20 publications, presentations and posters published on DermaClose. A published cost analysis shows DermaClose saves an average of $9,000 and four days in the hospital when treating fasciotomy wounds

Peer Reviewed Journal Articles August 2014 Walter Reed External tissue expander is included in the decision matrix for amputations March 2014 Walter Reed External tissue expansion is shown in the hybrid reconstructive ladder February 2013 Walter Reed Fracture Coverage with External Tissue Expander

Peer Reviewed Journal Articles October 2012 Walter Reed Soft Tissue Injury Management with External Tissue Expander September 2012 Mayo Clinic Scalp Closure and Forehead Defects March 2012 Walter Reed Fasciotomy Wound Management

Reduced Time to Closure Before Application DermaClose Benefits DermaClose expands the tissue to re-approximate the wound edges Intra-Operative Average time to closure 4.4 days on wounds averaging 262 cm 2 (Walter Reed Study in Annals of Plastic Surgery October, 2012) Wounds can be sutured closed in less than 7 days for most procedures Is a simpler, faster, cheaper alternative to skin grafts and flaps Patient Better returned cosmetic for final results wound closure than Post skin on Application Day grafts 4. of the DermaClose with immediate reduction in wound size Has a broad application for multiple specialties Plastics, Ortho, Gen. Surg., Vascular Surg., Podiatry 9

2016 Hospital Inpatient Reimbursement ICD-10 Code OJHXXNZ* Insertion of Tissue Expander Examples of ICD-10 Procedure Code Impact on DRG Grouping: ICD-10- CM Code T79.A29A S31.102A Description Traumatic compartment syndrome of lower extremity Open wound of abdominal wall, anterior, without mention of complication Payment Without Code OJHXXNZ Payment With Code OJHXXNZ Increase in Payment $4,793 $8,404 $3,611 $4,735 $8,155 $3,420 M72.6 Necrotizing fasciitis $4,994 $11,425 $6,431 T81.89XA Other complications of procedure $4,110 $8,404 $4,294 T87.9 C43.4 Unspecified complications of amputation stump Malignant melanoma of skin of scalp and neck $4,227 $11,425 $7,198 $5,536 $8,156 $2,620 * XX is a two digit code that varies depending on the location on the body 10

ASC & Outpatient Facility Reimbursement 11

Physician Reimbursement Commonly billed codes associated with DermaClose are: CPT Code Description Total RVU 2015 Payment (Facility) 11960 Insertion of tissue expander(s) for other than breast, including subsequent expansion 26.85 $ 961.23 11971 Removal of tissue expander(s) without insertion of prosthetic 9.08 $ 325.06 12

Clinical Cases DermaClose indication for use: The DermaClose External Tissue Expander is indicated for use in reducing or assisting with the closure of full-thickness wounds of the skin. Contraindications: The DermaClose External Tissue Expander should not be used on ischemic or infected tissue. It should not be used on fragile tissue at the edges of a wound. 13

Skin Cancer Excision Patient had Dermatitis Intra-Operative 14

Open Abdomen Intra-Operative After 48 hours After 9 days 4 month follow-up

DermaClose Frequently used with NPWT When using the DermaClose with NPWT (VAC), place Duoderm not gauze under the tension controller to prevent skin blistering

Large wound resulting from abscess Intra-Operative Case by Brian C. Reuben, MD, Plastic Surgeon

18

Necrotizing Fasciitis

Amputation BKA with VAC DermaClose helps achieve soft tissue coverage to preserve limb length.