A system (100) and method for cleansing and packaging medical instruments (230) are provided herein. The cleansing and packaging system includes a first sealable cleansing compartment (105) and a second sealable packaging compartment (110). A conveyor device (120) transports medical instruments to be cleansed through a sealing entry door (240) to the cleansing compartment, then to the packaging compartment through a sealing joining door (130), and then out of the packaging compartment through a sealing exit door (140). The cleansing compartment includes a sanitation system and a sterilization system, each which includes its own inspection devices that operate continuously to confirm the success of sanitation and sterilization operations. The packaging compartment includes a packaging system, which may include its own inspection devices that operate continuously to confirm the quality of the packaging of medical instruments. The pipeline approach provides greater availability of limited specialty medical instruments to hospital physicians.