US medical device manufacturers today are facing a new set of variables that threaten its global leadership role in a growing global market – a geopolitical shift from the North Atlantic to the Indian Ocean, an economic tilt from the northern hemisphere to the southern hemisphere, increasing government intervention in mature healthcare markets to limit the cost of healthcare, increasing government regulation limiting innovation in therapeutic segments, an aging global population, the threat of aggressive competitors from emerging markets, and as multinationals scramble to avoid “not-so-creative” destruction. Tom will examine several of these key variables and extrapolate new insights for the medical device professional on how to survive and thrive during this tumultuous period of change and opportunity. He will also provide “personal-branding” insights gained over thirteen years while assisting over one thousand executives, managers, and professionals who have chosen to reinvent themselves to make better use of their gifts or as a response to being downsized. (This widely acclaimed presentation was presented at the Marcus Evans Medical Device Summits in December 2013 and June 2014.)
The Global Tilt and Why You Must Rethink the Future of Medical Technology
1. RESET: The Global Tilt -
Why You Must Rethink the Future
of Medical Technology
.
Marcus Evans
June 26, 2014
Thomas M. Loarie, Executive Chairman
2. eMedonline
Medication Therapy Management Platform
2 7/9/2014
• Designed from the patient out
• Value propositions
• Proven behavior change
• Data and analytics
• Scientifically based (Parks)
• 98% Compliance
• 10 controlled clinical studies
• Managing patients taking up to 27 meds/day
4. Markets
• Care Transition
• Chronic Care Management
• Specialty Pharma
• Clinical Trials
• Analytics for Pharma & Providers
4 7/9/2014
5. Road Map
• The Evolution of Healthcare in My Lifetime
• Global Drivers of Transformation
• Reactions to Forces
• Foundation of Globalization
• Future Medtech Opportunities
• What Does This Mean for You?
5 7/9/2014
6. Transforming Events 1960-2014
House Calls Hospital
•For Profit Hospitals
•HMOs
•Hospitals
M&A
1970 1980 1990 2000 20101960
•Segmentation
•Doc in the Box
Health Reform
7. Transforming Events 1960-2014
Social
Security
Act of
1965
•FDA Modernization Act
•CMS takes front seat
Cuts in Funding to AeroDefense
•TEFRA
•DRGs
•Segmentation
•Marketing
•Kessler FDA
•M&A
Globalization
•The Great
Recession
•Implosion of
Venture Capital
•Health Reform
•ACOs
•M&A Hospitals
1970 1980 1990 2000 20101960
•GoldStandard
•Emergence of
Multi-National
•FDA Act
Transforming Events 1960-2014
15. Forces Disrupting the Balance in
Healthcare
15 7/9/2014
• > Aging population
• > Chronic disease
• > Public spending
• > Taxpayer revolt
• > Global middle class
21. New Health Care Economy - US
21 7/9/2014
• FFS to Value Based Pay
• Risk Shifting to Providers
• Care Mgmt Shifting to Doc
• Incomes Tied to Outcome
and Volume
• Clinical and Economic
Evidence
22. 22 7/9/2014
Figure 3. Potential points of innovation
Shiftdelivery from discreteservicesbased
organizations (e.g. specialists) to team based
models that address a patient’s overall need
Care
delivery model
Transition from dominant
payment models (FFS or Global
Capitation) to reimbursement
models that reward providers
for improving the value of care
Payment
model
Value-driven care
Network
model
Move from competitive
single tier networks to multi-
site networks that address
adequacy yet support superior
services delivery
Transitionfrom measurement
of process based compliance
and cost of charges to activity
based cost accounting and
outcomes tracking
Analytics
& outcomes
Clinical
integration
Reorganizeproviderfacilities
to focused factories with
defined niche services and
concentratedvolume to
integratecare
Information Technology
Integration technology that transitions from siloed systems leveraging
aggregation of data, connectivity to all stakeholders and experts systems
that allow for seamless sharing and engagement
23. New Entrants
23 7/9/2014
Of Fortune 50 companies, 24 are new entrants
The top companies also include 14traditional healthcare organizations
Fortune 50 companies 7 Retailers
14
Traditional
healthcare
companies 24
New
entrants
5 Technology
4 Finance
$$$$
3 Telecommunications
2 Automotive 3Consumer products
30. Globalization of U.S. Medical Care
30 7/9/2014
• Global distribution of U.S.
developed devices and drugs
• OUS clinical research
• Reverse brain drain
• physicians & engineers
• Manufacturing expanded OUS
• U.S. multi-nationals expanding
OUS product research
47. The Two Most Important Days In Your
Life….
…are the day you are born and the day you
find out why! - Mark Twain
47 7/9/2014
Hinweis der Redaktion
D-Rev is a non-profit product development company that designs and delivers products to people living on less than $4 a day.
When companies talk about serving emerging markets, they really mean is that they are serving the highest income people in emerging markets.
Phototherapy device – to treat severely jaundiced babies. As good as or better at $400 vs $3500.
Knee - $80 for a good, high performance polycentric knee. Comparable is $6000.
Offers a wide range of medical services
Lab testing
School physicals
Chronic condition management
70% of americans live within 3 miles of a drug store.
Source: Novartis