Originally Published MX September/October 2001

BUSINESS PLANNING & TECHNOLOGY DEVELOPMENT

For medtech companies, conducting a reimbursement assessment can capture VC funds and make favorable payer decisions more likely.

Judith M. Hickey

Historically, pharmaceutical and medical device companies have been a safe
haven for investment capital because growth in healthcare sectors continued
whether or not the economy was strong. But with the trajectory of the future
U.S. economy now in some doubt, the investment community is understandably skeptical
about the growth potential of any industry.

Many analysts in recent years have given as the biggest reason to invest in medtech companies the increasingly aging population, particularly the ranks of baby boomers approaching senior citizen status. That argument makes obvious sense, but it's too simple. The same projected increase in the number of customers gives the healthcare community reason to be concerned about rising costs.