that has changed now. Hospitals successfully have been creating
a new cost-conscious culture by buying physician practices. With
the exception of primary care physicians, OB-GYNs, etc., it is estimated that 67 percent of specialty physician practices (
cardiovascular and orthopedics leading the way) have been purchased
by hospital groups. This trend aligns hospital and physician incentives, and already is a major factor influencing product price,
mix and utilization.
Another Seismic Change
JP Morgan analysts identified another factor that will influence
the use of medical devices: The U.S. patient. They note that the financial burden of healthcare is still shifting toward the U.S. patient. This will have a deep impact on American attitudes of
utilization and expectations of the U.S. healthcare system.
Change Requires New Strategies
New strategies are rewarded—if they work. So with patients,
physicians and hospitals all aligning to reduce cost in the U.S.
healthcare system, what can we do? Plenty. Four medtech companies that are being rewarded through Wall Street attention for
innovation strategies are listed in Table 1.
A Threat or An Opportunity? Your Choice
There are many more medical device companies that are looking
Table 1. U.S. Medtech Companies with
Surgical robotics standardize
operating room outcomes,
reducing complication rates
(and cost) of surgery and
Sapien TAVI enters the
second year of U.S. Approval,
reducing the cost burden of
aortic valve disease.
Late 2012 FDA approval of
HVAD is full steam ahead for
2013 by meeting the unmet
needs of U.S. patients with
advanced heart failure.
Late 2012 FDA approval of
the next generation of
OmniPod puts Insulet on the
runway for 2013 by meeting
the unmet needs of U.S.
Type 1 diabetes patients with
a smaller and lighter wearable
pump for insulin delivery.
13. 7 percent
24. 5 percent
Source: JP Morgan, The Medtech Monitor, Jan. 2, 2013
at unmet patient and clinician needs and doing it successfully (see
the Datawatch column titles“Strangled Innovation or Opportunity
for Disruptive Technologies?” in the November/December 2012
issue of MPO). What patient or clinician segments in your market
could benefit from an innovative approach? ❖
Editor’s note: Readers are invited to submit market data and trend
questions to Maria Shepherd. Periodically, selected questions will be
presented in this column, with answers from Maria. Send your questions to the email in her bio (below).
Maria Shepherd, founder of Data Decision Group, has 20 years of leadership experience in medical device and life-sciences marketing. Following a career including serving as vice president of marketing for
Oridion Medical; director of marketing for Philips Medical; and senior
management roles at Boston Scientific Inc., she founded Data Decision
Group. Her firm quantitatively and qualitatively sizes opportunities,
evaluates new technologies, and assesses prospective acquisitions for
medtech companies. Shepherd teaches marketing and product development courses and recently was appointed to the board of the MSBiV
Medtech Investment Committee. She can be reached at (617) 548-9892