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A pile of Zynex Medical batteries and electrode pads are seen at Michelle Bean's home — A pile of Zynex Medical batteries and electrode pads Kayana Szymczak for STAT

Sending patients heaps of medical supplies to score more money from insurers is common in the device industry. If insurers decline to cover the supplies, patients are stuck paying for materials they didn’t need.

STAT examined one of the companies perpetuating this practice, a pain management device company called Zynex Medical, and the frustration among both its patients and former employees. Here are five takeaways.

The ‘razor blade’ business model

Zynex sells nerve and muscle stimulation machines, known as TENS and EMS units, to treat pain and soothe muscles. But the company makes most of its money from monthly shipments of batteries and electrodes — almost 70% of its $184 million revenue in 2023 came from these supplies.

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The ‘razor blade’ business model

This article is exclusive to STAT+ subscribers

Unlock this article — and get additional analysis of the technologies disrupting health care — by subscribing to STAT+.

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