Modern medical technology can contribute to achieving a sustainable healthcare system through value-based innovation. The medical technology industry in Europe is large, employing many people and investing heavily in research and development. However, aging populations are increasing healthcare costs and straining budgets. The industry recognizes it needs new business models focused on improving health outcomes and reducing costs to better support sustainable healthcare systems into the future. Value-based innovation that addresses both patient and system needs can help systems adapt to challenges through greater efficiency and productivity.

1. In What Ways Can Modern Medical Technology
Contribute To Achieve A Sustainable Healthcare System
John Brennan, Director Regulations and Industrial Policy, Eucomed
1st Pan-Hellenic Medical Technology Forum, 5th November 2014, Athens, Greece

2. 2

3. 3

4. Firstly: What is the European Medical Technology Industry
4
• A 100 billion euro market.
• About 10% is reinvested in R&D
• About 25,000 companies in Europe.

5. Firstly: What is the European Medical Technology Industry
5
• A 100 billion euro market.
• About 10% is reinvested in R&D
• About 25,000 companies in Europe.
• 80% SME-based.
• Employ 575,000 people in Europe alone.
• Over 500,000 MDs products on the European market.

6. Firstly: What is the European Medical Technology Industry
6
• A 100 billion euro market.
• About 10% is reinvested in R&D
• About 25,000 companies in Europe.
• 80% SME-based.
• Employ 575,000 people in Europe alone.
• Over 500,000 MDs products on the European market.
• Large amount of MDs invented in in Europe
• Patent application filed every 38 minutes in Europe

7. Firstly: What is the European Medical Technology Industry
7
• A 100 billion euro market.
• About 10% is reinvested in R&D
• About 25,000 companies in Europe.
• 80% SME-based.
• Employ 575,000 people in Europe alone.
• Over 500,000 MDs products on the European market.
• Large amount of MDs invented in in Europe
• Patent application filed every 38 minutes in Europe
• Improved or new product every 18 to 24 months.
• MDs account for 7.5% of healthcare expenditure.

8. So What’s going on with Europe’s Health Systems?
8

9. Working versus pensioned population (65+)
9

10. Shortage of health workers in the EU
Source:
Directorate-
General for Health
& Consumers
31 May 2011
10

11. Ageing populations are driving change in healthcare
11
Increase of chronic and
Multiple diseases
AGEING POPULATIONS
Budget constraints
Healthcare worker
shortages

12. Europe’s Healthcare models need to adapt
12
 Better health
 More people
 Constrained budgets
 Fewer carers
New approach in healthcare management models

13. Q: What about industry – Has Industry Adapted?
13
A: Yes
“The medical technology industry recognises that the
current business model is coming to the end of its
lifecycle…
… Change is never easy but it is imperative.
The status quo has to go”
Contract for a Healthy Future
Eucomed, October 2011

14. Industry: Changing our mind-set and business model
14
1. Embrace cost efficiency
and health outcome needs
of payers & policy makers
Virtuous
Circle
4. Achieve and demonstrate
cost efficiency and health
outcome goals for payers &
3. Invest in knowledge
transfer to optimize
healthcare delivery with HCP
/ institutions for patients
policy makers
2. Fulfil stakeholders’ needs
through value
based innovation

15. How can Medical Technology Innovation Help?
Traditional R & D Model
www.medtecheurope.org 15

16. How can Medical Technology Innovation Help?
Traditional R & D Model
Physician-driven solutions
• Physicians identify what they need
• MedTech makes it happen
…served patients well
www.medtecheurope.org 16

17. How can Medical Technology Innovation Help?
‘Technology Push’ R & D Model
www.medtecheurope.org 17

18. How can Medical Technology Innovation Help?
Technology Push R & D Model
Possibility-driven solutions
• Tech companies are looking at what
innovative technologies can do …
… Provide amazing solutions.
www.medtecheurope.org 18

19. How can Medical Technology Innovation Help?
A different R & D Model
www.medtecheurope.org 19

20. Value-based Innovative Products
A different R & D Model
Value-based solutions
Where we are going if…
…R&D targets technology for the wellbeing
of patients and sustainability of Health
Systems.
www.medtecheurope.org 20

22. So the Medical Industry has changed and can support change:
‘Value-based Innovation’
22
From Technologically driven solutions with
Innovation Focused on Products
to
Patients, Health Care Systems solutions
with Innovation focused on
Economical & Societal Contribution

23. Where can we support Change
23

24. Q: Can Modern Medical Technology Contribute to Achieving A
Sustainable Healthcare System?
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A: Yes and We need the Right Platforms

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27. THANK YOU
john.brennan@eucomed.org

28. Backup Slides

29. Current trends… if we don’t change…
29
Euro per year
per capita
GDP
Healthcare
costs
2010
GDP
2030
current
trends
GDP
MedTech Costs

30. If we do change…
Benefits of embracing Value-Based Innovation
Gains from higher productivity, late
30
30
Euro per year
per capita
retirement etc..
30
GDP
Healthcare
costs
2010
GDP
slow
growth
accelerated
increase
healthcare
costs
2030
current
trends
GDP
additional
stable
changed
policies
Increased
investment in
MedTech
innovation
extra growth
reduced healthcare costs
Higher efficiency in HC
systems and slower
increase of total HC
costs
MedTech Costs