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Medical Technology

MedTech meets digital health to advance health care

Technology isn’t the only thing that’s changing MedTech. Evolving regulations, value-based payment models, globalization, and greater consumer engagement are reworking the landscape as well.

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Responding to changes in digital technology

Patients, payers, and providers all look to technology to help them deliver better outcomes at lower costs. The impact of exponential technology and augmented intelligence isn’t confined to the application of care. It also shapes the relationships and market forces that drive the industry. Digital technology is inseparable from health care, and it is also central to new consumer expectations for how they will manage and receive that care.

Deloitte is a leader in life sciences, digital technology, and in the ways they intersect. Our solutions help life sciences companies reinvent strategies that embrace change and implementations that redefine it.

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Is medtech innovation at risk? Watch the video.

Is the medtech innovation ecosystem at risk?

​​We have been tracking a worrying trend: Investment and startup activity in medtech has been declining, putting future innovation at risk. To get ahead of it, AdvaMed and Deloitte partnered to uncover strategies and solutions that could help turn the tide. We examined data, reviewed literature, and interviewed executives across the medtech innovation ecosystem.

The research showed that many startup companies are struggling to make it out of the "valley of death"—or the period between the initial investment and creation of a commercially-viable product. While large medtech companies depend on a thriving external innovation ecosystem for acquisition targets and new sources of growth, many shy away from investing in early-stage, unproven technologies.​

In fact, some corporate and venture capital investors are hesitant to make investments in medtech innovation right now. This is potentially the result of financial pressures that stem from health care reform, the transition to value-based care, tougher insurance coverage, and increased regulatory requirements.

A fresh look at critical issues

Digital health innovation

The infusion of high-tech capabilities into medical technology is substantially changing the innovation game. Advancements in mHealth, sensors, analytics and AI all open the door for companies to pivot from being product developers to solution providers and create business models across the information value loop.

How we can help:

  • Growth and market assessment 
  • Breakthrough innovation 
  • Digital strategy and transformation 
  • Therapeutic area and portfolio strategy
  • Product launch strategy and execution
  • Internet of Things (IoT) strategy & implementation
  • Cognitive analytics
  • Cyber risk

Demand for value

Value-based, risk-sharing and bundled payment models are fundamentally changing the buying patterns in the health care system. And MACRA and Medicare payment reform alter the playing field even more. Demonstrating the potential of innovation isn’t enough anymore. Impacts to the patient experience and societal and population health are also a part of the new value equation.

Evidentiary support

The evidence management challenge doesn’t end with FDA approval. To determine coverage and reimbursement, and to provide the greatest possible access to new technologies, companies need to bolster their post-market approaches to data collection and predictive analytics. A focus on end-to-end evidence needs to be embedded from the beginning of product development through to commercialization.

How we can help:

  • Analytics 
  • Real-world evidence strategy and implementation

Mergers and acquisitions

Recent years have brought forth M&A transactions of significant, but varying size, including combinations of longtime competitors. Much of the activity has been motivated by the need to bolster portfolio offerings, enhance therapeutic solutions, expand internationally, and increase scale and leverage. A strong emphasis on synergy and value creation from the beginning of a transaction puts a premium on targeting, diligence, and post-merger integration efforts.

How we can help:

  • M&A strategy
  • Due diligence and transaction support
  • Corporate finance
  • Post-merger integration
  • Divestiture

Quality and regulatory

MedTech companies already operate in one of the world’s most regulated environments—and scrutiny and complexity are only increasing, especially when it comes to patient safety, quality, and reliability. The digital revolution has created its own set of complex cyber and security concerns.

How we can help:

  • Cyber risk 
  • Regulatory risk and compliance 
  • Quality management
  • Tax compliance

Operational efficiencies

Pressure from the outside to demonstrate value and regulatory compliance translates to pressure on the inside to take out costs, generate more profit, and do more with less. Changes on the margins have probably been made already, and companies are turning to new business structures that can deliver deeper efficiencies.

How we can help:

  • Finance transformation 
  • Supply chain and manufacturing operations
  • Product lifecycle management
  • Multistate and international tax planning, transfer pricing, and tax operations services
  • Enterprise technology

Learn more about our Life Sciences practice.

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Glenn Snyder

Glenn Snyder

Medical Technology Segment Leader

Glenn leads Deloitte LLP's Medical Technology practice with more than 25 years of experience in medical technology, biotech, and specialty pharmaceuticals. He helps clients grow through organic and in... More