There´s plenty of room at the bottom
The cost curve of European health care systems has been growing constantly for years. This has put high pressure on many western health systems, all leading to a growing number of new regulations. As a major additional hurdle, cost-benefit assessment of medical devices has been installed in many countries globally. Institutions such as NICE in England, which has been the first of its kind in Europe, or IQWiG in Germany are commissioned to weigh up the costs of a new therapy against its benefits.
Health insurers start to contract directly with manufacturers based on rebates and risk sharing models. Integrated healthcare delivery has been adopted widely already. New business models start to hold providers of medical devices accountable for the financial and clinical impact of their services. All such measures within the health system have profound consequences for the industry players.
Taking these changes in the healthcare markets and the growing number of regulatory limitations into account, companies have to adjust their strategy and organization once again. A new business approach is needed to compete.
Besides all aspects of cost and access for innovation, medical devices – with no doubt – still have unlimited opportunities to change the face of healthcare by minimization of devices, new materials and surfaces and by embedding intelligent algorithms into the devices.
In times of fast moving business models and new technologies shaking up the traditional healthcare industry, it’s even more crucial to source and manage innovative ideas effectively and sustainably. Collaborations are seen as one promising option to raise finance amid, share potential risks, boost research productivity and outcomes, discover new therapies – and therefore ultimately to reinvent the way healthcare is delivered.