A growing emphasis on value-based care models and an emergence of new technologies are influencing medtech companies’ business strategies, according to a study from the Deloitte Center for Health Solutions and the Advanced Medical Technology Association (AdvaMed).
The report found that to adapt to health care system transformation medtech R&D executives are focusing on the following priorities over the next 3-5 years to cope with changes in U.S healthcare:
- Diversification of portfolios (86%)
- Accelerating time to market (82%)
- Leveraging real world evidence in product development (77%).
Findings are based on surveys of 22 medtech company representatives working in the organisational R&D function.
Scott Whitaker, president and CEO of AdvaMed said: “A changing healthcare landscape is creating new opportunities for medtech to drive innovation, and medtech is certainly taking advantage. R&D leaders are shifting their strategies in the face of new trends to boost efficiency, reduce costs, and provide more integrated and coordinated care for the benefit of patients around the world. AdvaMed will continue to promote policies that support this evolution, so that medtech can continue to deliver life changing treatments and cures.”
Highlighting the opportunities and difficulties posed by the emergence of digital technologies, all companies surveyed in the study reported investing in device connectivity; however, 77% identified integration of data from new technologies as a potential obstacle, citing lack of access to critical funding and skill gaps, with 95% of companies pinpointing increasing complexity of global regulatory requirements as a major challenge.
To help address these problems and drive their innovation agendas, 82% of companies plan to collaborate with non-traditional partners (e.g. technology and health care companies), with 73% adopting hybrid operating models that leverage a combination of centralised and decentralised resources.
Glenn Snyder, principal and medtech leader at Deloitte Consulting, said: “The digital transformation of medtech is requiring R&D leaders to modify their operations and invest in future capabilities. Key emerging capabilities include platforms to collect and analyse patient and other real-world data, as well as digital skillsets needed to develop products with sensors, software and AI. Such capabilities may also require new processes and operating models.”