Augustine Medical, Inc. was founded by Dr. Scott Augustine, an anesthesiologist from Minnesota, in 1987. The company was created to develop and market products for hospital operating rooms and postoperative recovery rooms. The company provides innovative solutions to fight against conditions like hypothermia. Medical research indicates that 60 to 80 percent of all postoperative recovery room patients are hypothermic. Hypothermia is caused by a patient's exposure to cold temperatures or can also be caused by heat loss due to evaporation of the fluids. Dr. Augustine's personal experience in the operating room convinced him that there was a need for a new system. Dr. Augustine also realized that the potential market is huge for this new product. The numbers indicate that approximately 21 million surgical operations are performed annually in the United States, and that approximately 5,500 hospitals have operating rooms.
The Bair Hugger Patient Warming System consists of a heat source and a separate disposable warming cover that directs a gentle flow of warm air across the body. The Bair Hugger heat source uses a reliable high efficiency blower, a sealed 400W heating element, and a microprocessor based temperature control to create a continuous flow of warm air. The heat source complies with all safety requirements for hospital equipment. Augustine Medical, Inc. was able to find investors that contributed to the initial capitalization of $500,000. These initial funds that were collected were used for staff support, facilities, and marketing.
Augustine Medical Inc. planned for The Bair Hugger Patient Warming System to be sold by and through medical distributors in regions across the country. Distributors would call hospitals, demonstrate the system, and maintain inventory of the blanket. The distributors were paid a margin of 30 percent on the heater/blower unit and 40 percent on the blankets. The estimated direct cost of each heater/blower... [continues]
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