Business

The tool most commonly used to demonstrate the value of a new medical technology is the business case. Typical business cases can be thought of as falling into one of four categories. Compared with current care, the technology:

– costs less in the current year and you get what you get from current care (‘save money now’).
– costs the same and you get more than you get from current care (‘more value for current spend’).
– costs more in the current year but cost less when future savings are taken into account and you get what you get from current care (‘spend now to save later’).
– costs more but you get more (‘spend more for better quality’).

When we speak about healthcare in Europe, the word ‘sustainability’ is used often. From the outset of the economic crisis in 2008, policymakers, ministries of health, customers and payers all have focused on sustainable financial systems and sustainable healthcare systems – often as separate paths to achieve results. As budgets are shrinking, innovative ways to maintain current social and healthcare systems for the long term must be employed. At CleanMed Europe, a conference that brings environmental and healthcare issues together on the same agenda, I was pleased to see that a broader alternative discussion is emerging—one that marries financial and systemic sustainability in healthcare.

Innovation is synonymous with progress. Embracing innovation means embracing the need to improve the sustainability and efficiency of healthcare systems by encouraging new business models, unlocking new market opportunities and improving health outcomes. Uptake of innovation in technology and services, however, could be quicker on the European healthcare scene, with myriad barriers currently standing in the way.

Centralised procurement of medical technologies is an increasingly prevalent phenomenon in the EU, and one that all stakeholders in this field, whether for or against it, have strong opinions on. Purchasers have embraced centralised procurement as a means to drive down costs. Suppliers fiercely oppose it as it would limit market opportunities and slow down adoption of innovations. Some experts believe that centralised procurement might actually have a negative effect on quality of care in the long run, as it focuses too much on short term cash savings.

When UBM Canon decided to launch the MEDTEC EMDT Innovation Awards, the PIP implant affair was not front-page news. The organisers merely thought that the contributions made by Europe’s medical technology industry in ameliorating the human condition deserved recognition. But in the aftermath of the wall-to-wall coverage of the French breast implant scandal, it’s more important than ever to celebrate and trumpet the achievements of this remarkable industry.

Most of you know that John Wilkinson has left the position of Eucomed Chief Executive at the end of last year. And even though John’s decision was announced already in June of 2011, as I write this now, more than six months later, it still feels as if he informed me of his intentions only yesterday. Fond of the Brussels bubble while at the same time being excited about the European and global perspective of the job, I am sure it was by no means an easy decision.

As the Euro zone crisis threatens to precipitate a much more fundamental questioning of the European dream, it is easy to revert to the eurosceptic homeland of vilifying apparently meaningless rules and regulations that have little real impact on the lives of any of us. The likes of the British ‘save our pint’ campaign trivialises the debate and does little to educate the voters of member states as to the real issues at stake.

My wife and I are part of the problem. Last weekend we ran respectable 10 kilometre times although we are both in the latter half of our fifties and we will play energetic tennis twice in the week ahead. Both had life expectancies in the early seventies at birth and now our risk adjusted life expectancies are straddle ninety years. We are a triumph for modern lifestyles and medicine (both having had interventions for conditions which may well have been fatal one hundred years ago) yet healthcare is the political scourge of our times. The success of society in increasing healthy productive years is matched by the failure of that same society to plan for such success in the provision of pension, health and social care. Yes, we have a financial crisis which has followed the profligacy of a generation but this is a minor issue compared to the need to rebuild our economic models to accommodate the demographic changes which us ‘baby boomers’ are so central to.

My pulse is already racing at the prospect of this year’s MedTech Forum. The sequence of events following the 2008-2009 banking crisis has played out rather predictably with a broader economic crisis emerging in 2010 and only this year has the full force of public sector impacts been seen as the spending or money printing spree used to avoid deep recession has shifted to efforts to rebalance economies and pay back the debts that were created by ten years of fiscal laxity.