Medtronic has been leading the industry in the charge toward value-based care, and its efforts have been paying off in spades, as MD+DI has recently observed. Now, the company has found yet another way to stay ahead of the curve.
The company recently launched a new performance guarantee program around its MiniMed 670G insulin pump. The new program is an outcomes-based offering for payers and employers designed to mitigate costs for diabetes-related complications. With this guarantee, Medtronic said it will provide flat-fee reimbursements of up to $25,000 per pump over four years for qualifying diabetes-related inpatient hospitalization and emergency room admissions for eligible in-network patients in the United States.
"The idea is to really put our money where our mouth is and really get behind the performance of our products," Suzanne Winter, vice president of the Americas region for the Diabetes Group at Medtronic, told MD+DI.
The program is the result of analyzing data from clinical trials and also real-world data that shows how patients have been doing on the MiniMed 670G insulin pump, Winter said.
"It is the result of our taking a look at our data from our clinical trials and also our real-world data around how the patients have been doing on their 670G
The program is being offered to payers and large employers with an at-risk population, and it provides Medtronic with an opportunity to work with those partnrs to identify patients who would benefit from the MiniMed 670G system, including those who may be most at risk for diabetes-related adverse events.
"This new program demonstrates the strong confidence we have in our ability to deliver improved clinical outcomes with our MiniMed670G system and our commitment to value-based healthcare that not only improves outcomes but drives down the enormous burden of diabetes-related healthcare costs," said Alejandro Galindo, president of the Advanced Insulin Management division within the Diabetes Group at Medtronic. "Medtronic is committed to working with new partners, in new ways, to create a paradigm shift in healthcare so that incentives are based on delivering better outcomes and quality of care for our patients."
The MiniMed 670G system, featuring SmartGuard technology and Guardian Sensor 3, is the first self-adjusting insulin pump that delivers personalized amounts of basal insulin every 5 minutes based on real-time sensor glucose values, Medtronic noted.
"We are going to continue to examine the different ways to take a look at the outcomes and make sure that there's not only a clinical outcome that patients experience but also an economic impact," Winter said. "Diabetes is a chronic disease and so we want to show that there is both clinical and economic impact, even in the short term, as well as the long-term benefit of managing this chronic disease more effectively."
"We believe this will be a compelling value proposition for payers and employers, as we create a new industry standard for diabetes contracting that can lead to improved health outcomes, contained costs and improved quality of life for diabetes patients," Winter said. "We look forward to establishing this novel program with our payer and employer partners."