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What if the Great Recession Never Happened...?
A new report from EY (formerly Ernst & Young) takes a look at what medtech revenues would be if the Great Recession never occurred.
September 24, 2013
2 Min Read
So willingly suspend your disbelief for a minute.
EY (formerly Ernst & Young) released its sixth annual Pulse of the Industry 2013 report about the medtech industry at AdvaMed's annual conference in Washington, D.C., on Tuesday. and two slides jumped out for what could have been.
Iain Scott, an EW analyst who presented the data highlighted a well-known fact that medtech R&D spending has declined as a result of stalled or slower growth. So, what if medtech continued on its previous trajectory of 13% annual growth in the years between 2008 and 2012.
It would mean the industry overall would have had $131 billion more revenue and $12 billion more to spend on R&D. See slides below.
Still, while pointing out how glorious it all could have been, the report also made effort to chart out some strategies companies can take to survive and thrive in the pay-for-value model that is coming.
Find ways to provide value beyond the physical product. These can be value-added services thar are add-ons to the product or even standalone.
Focus on value that can be created outside a specific treatment or therapy - these can be remote patient monitoring services or earlier identification of patients that are at-risk.
Develop strategies to deliver value beyond the procedure and the hospital. Develop more mobile products that allows patients to tap into the convenience factor in their quest to manage their health.
One thing is clear from the report and the discussion that followed with the panel of senior executives and CEOs is that the patient has to be front and center in operating paradigm of medtech companies in the future.
[Photo Credit: iStockphoto.com user VCTStyle]
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