Qmed Medtech Pulse Blog
November 27, 2012
Brian Buntz
Since 2007 to present, much of the world has faced financial turmoil. At the same time, medical costs throughout much of the world have continued to soar. The med device space, which several years ago, was often referred to as “recession proof,” has proven to be anything but. In 2012 alone, the industry has been hit with waves of layoffs and, in the last few years, the sector has seen dwindling venture capital investment.
In the United States, the uncertainty around healthcare reform has been a sizable concern. But the underlying fact remains: the business model behind most medical device products is not nearly as attractive as it was even a decade ago, when venture investments in the broaderlifesciences sector outperformed the tech industry.
It’s no surprise then that cost pressures are growing. “We hear every day that we can’t afford what we are doing [in healthcare],” said AliveCor founder David Albert, MD to an audience of cardiovascular device industry professionals at the inaugral MedTech Cardio conference. “There may be no agreement on how we deal with it, save that we are going to spend less.”
In the future, however, it is practically certain that there will be more emphasis placed on personal responsibility in healthcare—personally and financially. Money will be the driver of this trend while technology enables it…