Imagine a world where hospitals can shave significant costs off their budgets while ensuring surgeons have the tools they need for optimal patient care. That’s the driving force behind DOCSI, a Minnesota-based software company leveraging data analytics to streamline surgical supply chains.

The $25 Billion Problem

“The amount of waste and opportunity for improvement  in the U.S. healthcare system is staggering,” explained Andrew DeLeeuw, CEO of DOCSI. “Estimates place it over $25 billion annually with a large portion of that coming from supply waste and operational inefficiencies in the operating room.”

That’s where DOCSI comes in. While the opportunity to manage waste across the entire spectrum of healthcare is large, this surgeon-founded startup focused on one of the biggest areas of waste – the surgical supplies used in operating rooms.

Andrew continued, “The surgical arena in hospital systems is our beachhead. We know there are many opportunities to expand into other areas of healthcare and deliver the same data transparency to build cost-conscious decision-making, but currently, we’re laser-focused on the surgical environment.”

A Data-Driven Solution

DOCSI is a unique solution with an approach that is data-driven, providing hospitals and surgical centers with actionable, AI-powered insights. DOCSI digs into a hospital system’s existing data on supply usage to identify areas for improvement, pinpointing areas to reduce waste and optimize supply utilization.

Where DOCSI really shines is in physician engagement and change management. The mobile solution empowers physicians with personalized dashboards showcasing relevant data and actionable steps to take. DOCSI makes physicians part of the solution, empowering them to make evidence-based decisions around their material usage. Physicians can make clinically relevant and price-conscious decisions that preserve patient outcomes.

Ultimately, DOSCI facilitates standardization of procedures and better communication between physicians and supply chain teams, ensuring that surgeons have the necessary supplies and tools readily available.

​Leveraging Mentoring to Learn and Grow

Andrew learned about MESA from Reed Robinson of Groove Capital, and a year and a half ago was selected to join the MESA mentoring program.

“Mentorship has been a big part of my life. I firmly believe that I don’t know everything that I need to know,” Andrew explained. “When Reed told me about MESA, I was excited to get involved. Finding people in the industry as a first-time CEO, and as someone leaving military medicine and transitioning into the civilian healthcare system,  mentorship was extremely important to me.”

MESA mentors Will Sigsbee and Jim Moar meet with Andrew monthly, and working with him, help the company identify a wildly important goal. This goal becomes the north star for the business, keeping the spotlight on the strategies and tactics that will make the greatest difference in the progress and growth for the company.

“Once a quarter, MESA brings a group of four to five Minnesota software startup companies to the table,” explained Will, DeLeeuw’s mentor at MESA. “We’ll hear their pitch, and when I heard DOCSI’s, I was excited about the proposition. With my healthcare and medical device background, it was a great fit for me. Having run fledgling software companies, I wish I’d had MESA in my pocket in those early days, offering an unbiased, agnostic sounding board.”

Andrew offered, “Having a program like MESA gives me not one but two great mentors who are not investors in my business. Will and Jim provide great insight drawing from decades of experience and have saved me hundreds of hours by sharing their lived experience. Their advice is just that – advice. They’re not making decisions for me, but they’re asking me challenging questions on how what we’re considering will advance us toward our goal. It’s a phenomenal resource and one that I’ll be sad to lose once DOCSI graduates from the program.”

Andrew credits the mentorship he’s receiving through MESA for helping propel DOCSI’s success. “Will and Jim’s guidance has been invaluable as we navigated the complexities of the healthcare industry,” he said.

“When you’re a young company, you’re really trying to find out where your groove is,” Will explained. “Andrew and his team have been very responsive to feedback. And I think when you look at their sales pipeline today vs. a year and a half ago, it’s more focused yet much more robust with the opportunity to bring in hundreds of thousand dollars a year.”

Benefits Beyond the Bottom Line

DOCSI’s impact goes beyond cost savings. For hospital systems, DOCSI targets a minimum 4X return on investment for its customers, and some see much more. DOCSI also helps improve efficiency, with streamlined supply chains and reduced waste, hospital systems have better resource allocation and cost systems giving them the ability to invest in other areas. Enhancing patient care is of utmost importance, and the platform ensures that surgeons have the right tools available, translating to smoother procedures and the potential for better patient outcomes.

“DOCSI empowers physicians with the data they need to advocate for their patients while optimizing resource allocation,” said Will. “Keeping the physician front and center is a key differentiator for DOCSI. It makes the physician part of the solution, streamlines preparation, and ensures they have exactly what they need for any procedure.”

Accelerated Growth on the Horizon

One significant milestone in DOCSI’s growth is a strategic partnership with Allina Health. With this partnership, DOCSI moved from a pilot program to full system implementation at all 12 hospital campuses, providing significant value impacting over 20,000 surgical cases annually.

To continue accelerating growth, Andrew was evaluating trade show opportunities and came across some reverse expos where the hospitals set up booths and companies come to pitch their products. Will had experience with these kinds of expos and heartily endorsed DOCSI attending to allow them to meet with 20 – 30 health systems and expose their brand.

Andrew explained, “The reverse expo was a big pivoting moment for us. We’re committed to being capital efficient, so it’s not something I would have normally considered – but they’ve been fantastic for us. We’ve done five of them now, and they’ve delivered excellent opportunities for us.”

“DOCSI is on a good trajectory to grow and is building traction outside its core market here in Minnesota,” Will validated. “They’re working with a very large, well-known health system and frankly, are helping to deliver care in a completely different value-based manner. They also have several large health systems in the works right now. Revenue diversity is growing as well as the diversity of systems themselves. They’ve got a strong story to tell, and it’s resonating.”

While DOCSI remains focused on surgical procedures, the company envisions a future where its data-driven approach extends to other aspects of healthcare. Their mission is to empower healthcare institutions with the tools and insights needed to make informed decisions that lead to better patient care, and that has broad implications for all aspects of healthcare today.