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Medtech Winners of 2015: Risk-Sharing

Risk-SharingThe concept of risk-sharing is beginning to take hold in medtech. Although only a handful of companies are currently engaging in the practice, that's significant progress over just a few years ago, when it was considered anathema.

Consider the risk Medtronic is undertaking with its Tyrx device, an absorbable antibacterial mesh sleeve that is wrapped around a cardiac device before it is implanted in a patient. People receiving implantable devices are at high risk for infection, and Medtronic is guaranteeing that Tyrx will lower the infection rate compared with competing cardiac devices without the resorbable sleeve. If it doesn't lower the risk of infection as promised, Medtronic is on the hook to cover the costs of treating the patient's infection. Medtronic CEO Omar Ishrak has called this calculated risk-taking key to the success of an accountable healthcare system.

St. Jude Medical and Johnson & Johnson are a couple of the other companies that have revealed they are also engaged in risk-sharing. 


Start 2016 off right by attending MD&M West, the world's largest medical design and manufacturing event, February 9-11, at the Anaheim Convention Center.
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