Value-Based Healthcare Is So 2015. Now Products Are the Talk of Medtech

Posted by Brian Chapman on March 20, 2019

For as long as I can remember, value-based healthcare has been the talk of the medtech industry, and for good reason: Who can argue with efforts to improve patient outcomes at a lower cost? With such virtuous and unassailable aims, it’s the irresistible force that dominated strategies in the last decade.


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Threading the Needle: Post-Merger Communication and Compensation Plans

Posted by Tobi Laczkowski on November 29, 2017

For many medtech companies, the end of the calendar year is also the end of the fiscal year—a critical period of transition as management teams prepare organizational design strategies for the following year. Organizations in the midst of integration mergers and other transitions can expect even bigger changes during this time than in “normal” years. They need to thread the needle between over-communicating and under-communicating during this period of uncertainty while balancing the inherent challenges of creating a combined organization with unified values, processes and goals. With that in mind, management teams face a fundamental dilemma: How best to communicate what sales teams can expect in the next year without disrupting necessary end-of-year activities.


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Are You Starving Your Innovation?

Posted by Roz Lawson on October 26, 2016

 

A recent review of global medtech business reports that the sector’s total revenue fell in the past year for the first time since 2011, U.S. and European medtech financing dropped, and top management of established medtech companies appears to be focusing on short-term allocation of capital, turning $13 billion over to shareholders in 2015 rather than reinvesting it in their companies. Both large and small companies are limiting their investment in taking new technologies to market and expanding their customer base.

The risk-averse climate isn’t surprising. Historically, many companies have struggled to recognise the benefits of an acquisition due to a focus on short-term results. Take the example of a big company that has acquired a promising device from an innovative startup, integrated it into their less-than-agile decision-making structure, and then managed it with a one-year-return mentality to satisfy their shareholders. The result? Unsurprisingly, growth falters, and then investment is restricted, so growth stalls, and so on. A few years down the line, the big company is considering selling off its once-promising asset. I won’t name names, but I can think of many examples, and some big companies are serial offenders.


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