Beyond Covid-19: What Should MedTech Innovators Expect? - Reimbursement Strategies for Medical Innovation

May 7, 2020

| No Comments

After Covid-19 how will medical device product strategy change? Webinar with medtech commercialization experts

Perspectives on Medical Reimbursement

By JR Associates

In recent months, the coronavirus pandemic (Covid-19) has dramatically disrupted businesses around the world. Arguably, healthcare has been more profoundly affected than any other industry. But even as attention remains focused on virus containment and treatment, medical technology companies must prepare for the long-term.

“What next?” is a top-of-mind question. But more importantly, life science innovators are asking, “How will Covid-19 shape the future of medtech innovation and commercialization? And how will it affect our product roadmap, in particular?”

To examine questions like these, one of the UK’s leading consulting firms, Device Access, recently hosted a virtual roundtable with numerous experts, including our President Judy Rosenbloom and VP of Global Health Policy, Jo Ellen Slurzberg.

This session attracted a capacity crowd of global participants. Their questions underscored the device community’s desire to serve the market’s immediate needs while influencing broader health policy.

The webinar is available to replay on-demand below, followed by notes from our consultants that summarize highlights from the discussion…

If you’d like to talk directly with us about how any of these issues affect your organization’s strategy, we invite you to contact us for a free preliminary phone consultation.

PANEL NOTES: MedTech Market Access After Covid-19

PARTICIPANTS:

• Michael Branagan-Harris – (event host) CEO, Device Access, UK

• Bertram Haeussler – Chairman IGES Group, Germany

• Rory Heaslip – Marketing Director, Sensium Health, UK

• Professor Timothy Jackson – Consultant Ophthalmic and Retinal Surgeon, Kings College Hospital, UK

• Amit Kukreja – VP Global Market Access, Reimbursement & Marketing, Second Sight Medical Products, USA

• James Montgomery – NHS Transformation Programme Manager (NHS STP) System Transformation Programme, UK

• Judy Rosenbloom – Founder & President, JR Associates, Inc, USA

• Jo Ellen Slurzberg – VP, Global Health Policy/Reimbursement, JR Associates, Inc, USA

• Zacharias Tsiamoulos MBBS, PhD – Gastroenterology Consultant, Endoscopy Clinical Lead & Specialist, East Kent Hospitals University NHS Foundation Trust

• John West – NHS General Manager, Surgery and Orthopaedics, Poole Hospital, UK

SESSION HIGHLIGHTS:

1) Where are medtech innovators likely to find market opportunities as the Covid-19 crisis subsides?

All panelists agreed that the recent surge in telehealth adoption is promising. Although telehealth options quickly became a necessity to protect public health during the Covid-19 outbreak, their continued use should benefit patients as well as providers, going forward.

2) What telehealth issues remain?

According to panelists, previous telemedicine policies reflected outdated thinking. All agreed that temporary Covid-19 coverage changes helped demonstrate the effectiveness of delivery options such as online health consultations and remote patient monitoring. Nevertheless, several key hurdles remain. For instance:

• PATIENT ACCESS
Increased demand for telehealth solutions underscores the need to provide more affordable online connectivity and access to relevant digital devices – particularly for some of the most vulnerable segments of the patient community.

• PRIVACY AND SECURITY
Widespread use of telehealth applications opens the door to more prevalent data breaches. This means that health IT solution providers, physician practices and others across the healthcare value chain must be even more vigilant to protect patient privacy and security.

3) How is Covid-19 affecting hospital finances?

Realities vary by nation:

The UK has forgiven debt among public NHS hospitals.

In the USA, hospitals have been hit particularly hard. Concern is growing about how facilities can emerge financially intact. Many hospitals in underserved areas must treat even more patients who’ve lost jobs during the Covid-19 crisis. Hospitals in other areas are also feeling the impact of the sudden economic downturn. Many providers may not have sufficient financial resources to remain open without additional government assistance.

Meanwhile, Germany seems to be managing response to the pandemic in a manner that limits the downside financial impact on hospitals.

4) How will shifting healthcare economics affect the medical device industry in the aftermath of Covid-19?

Participants agreed that medical technology companies will face extraordinary pressure to demonstrate value. This is further complicated by the fact that various countries are likely to define “value” in different ways.

As a result, clinical and economic research will play an increasingly vital role in defining the impact of devices on institutional purchasing and financial performance. This will be particularly important in countries like the US, where device cost and value must be balanced and proven – not just assumed.

In other words, US device companies must have clinical trial data in-hand. They must also be prepared to partner with hospitals and payers to share financial risk, including managing programs for facilities that are struggling to operate with depleted resources.

Historically, this approach has been more challenging for smaller medical device companies. These organizations need to plan particularly carefully, so they can establish a solid business case in the post-Covid-19 environment.

5) How can medtech manufacturers make lifesaving devices more broadly accessible?

It’s possible to produce and distribute critical medical devices more quickly and cost effectively. However, various factors should be considered. For example:

A global supply inventory would be ideal. But appropriate governance is essential to prohibit stockpiling by one or more countries at others’ expense – particularly during a global crisis like Covid-19.

When development of target medical technologies (such as ventilators) is expanded, it should lead to increased availability of lower-cost devices from multiple providers.

Manufacturers should consider emerging devices that are straightforward for staff to use without special expertise. Also, it may also be desirable to pursue diagnostic solutions (such as point-of-care imaging devices and lab tests) that facilitate triage by nurses and nurse practitioners.

In the past, manufacturers’ representatives (clinical engineers and other staff) typically visited clinics during procedures to train practitioners and answer questions about how to use devices. In the future, online or software-based training and resources can play a more integral role in training and customer support.

Artificial intelligence is likely to flourish as medical device enabling technology. However, the quality of underlying AI data and related software must be superior.

6) What should device manufacturers consider about elective procedures?

In the US, many patients have lost their jobs and their health insurance, or they can’t afford to purchase insurance. This directly influences the patient pool and access to elective procedures.

The healthcare industry will eventually recover from today’s challenges. However, it may take a year or more for elective procedures to rebound, given depleted PPE supplies, hospital demand backlogs, and a potential Covid-19 second wave. What’s more, many concerned patients may rethink their elective procedure plans altogether, or their disease status will progress to the point where they’re no longer eligible.

To forge more sustainable strategies in these uncertain times, device manufacturers should focus on building stronger partnerships with medical providers and others across the broader healthcare ecosystem.