Some Thoughts from 2012 AusMedTech Conference
May 24th, 2012
Posted by Caroline Popper, M.D., M.P.H.
While securing financing is an important milestone for developing new healthcare technologies, developers need to look beyond this first step and find ways to determine and demonstrate the value of their innovations. And there’s no better place to discuss this crucial issue than in Australia.
Home to 600 medical device companies, Australia ranks as the fourth-largest market in the Asia-Pacific region. I wrote this post last week from the 2012 AusMedTech (Australia Medical Technology) national conference in Sydney after sharing some strategic insights with device executives.
As the device industry continues to grow rapidly, it will be important for technology developers to demonstrate how their products add value to healthcare. No matter where they are located in the world, developers need to:
- Put their product in context right from the beginning:
- Think more about what real problem the invention is trying to solve. This means understanding the state of the industry, standards of care in health provider settings, and how and why the invention should change the status quo.
- Determine how resources would be affected by a new invention. This includes comparing the device’s cost against how much value it provides to the physician and/or to the patient.
- Consider the provider status quo, payor and consumer conditions, and the competitive landscape as they begin development of the product and not just prior to commercialization.
- Align development with current trends:
- Assess how the product meshes with the rise of the power of the consumer in healthcare, and determine how cost constraints at the consumer level as well could threaten the success of the product.
- Recognize that in every market cost constraints prevail. The new product needs to drive operation efficiency in service delivery and shift the value: cost equation firmly in the direction of value.
I look forward to continuing this conversation and plan to share in a future post my particular view around aligning with current trends. In the meantime, please feel free to share your thoughts here about the Australian medical device industry or about the points I’ve raised in this post.
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