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1. Unlocking Medical Device
Technology Opportunities in
Value-based Healthcare
Parimal Shah
February 19, 2016

2. Parimal Shah
Medtronic
Director New Product Development
Carlsbad, CA
https://linkedin.com/in/parimalshah
Parimal’s career spans 20 years directing global teams to deliver market-leading
device therapy solutions at GE Healthcare, Baxter and Medtronic focused on
CT/PET imaging platforms, Infusion systems , Critical care Ventilators and
Healthcare IT.

3. Healthcare Challenges

4. Reimbursement models shifting to
Value

5. Reform and Data Are Creating New
Opportunities in the US
Hospitals Highly Connected
(HIMSS Stage 4+)
>55%50 -70%
Hospital Revenue from Value Based
Reimbursement by 202O
Available, Connected DataValue Based Reimbursement
Health Consumerism
88%Consumers confident in ability to
take responsibility for health

6. Defining Value in Health?
VALUE
COST
OUTCOMES
Simple equation, in practice involves complexity on several levels

7. Stakeholder Interpretations Vary

8. How to win in Value-Based
Healthcare?
• Integrate health economics in to technology
opportunity assessments
• New partnerships and Business models based
on joint accountability
• ‘Adoption’ of entire disease area, rather than
focusing on one single stage condition
• Consider Patient Outcomes at a much earlier
stage

9. Key Ideas
1. Value Based Care is here and a top priority
2. Health systems are responding &
implementing
3. Mixed early results & remaining challenges
Reason to believe broad implementation soon and will
occur abruptly

10. Steps to Value-based Healthcare
What does it mean to Medical Technology companies?
1. Select specific diseases or medical condition
2. Define and measure outcomes for that disease
3. Determine today’s baseline costs
4. Create business models to add greater value
5. Use new data to continually improve

11. New approach to MedTech R&D
• Reducing time in hospitals through
improved surgical outcomes and
minimally invasive procedures
• Low power electronics
• Electronics miniaturization
• Battery energy density
• Improving and expediting diagnosis
and negating need for biopsy
• OCT, Ultrasound for Vascular
disease
• CT-MRI for virtual colonoscopies
• Enabling remote patient monitoring,
improving compliance
• Glucose monitoring, asthma
inhalers
• Clinical decision support systems
Legacy Organizations will have to Transform

12. Future Technology Ecosystem
“open the aperture” (see the elephant!) and then
simplify and focus.

13. Looking beyond 2016
Virtual Helpers: Siri meets Dr. Watson
Patient Engagement: Self careMedication Adherence: Sensor technology
Voice recognition & AI: mHealth appsPredictive Analytics: for all
Disease detection: on smartphones

14. The Heilmeier Catechism
• What are you trying to do? (no jargon!)
• How does this get done today?
• What is new about your approach?
• If you succeed, what difference do you think it
will make?
• How long do you think it will take?
• Can your work transition to others?
• How much will it cost?
Legacy Organizations will have to Transform

15. Thank you
parimal.shah@medtronic.com