1. Challenges and Solutions for the Private Healthcare Industry
Medical Devices Industry
Mark Brand
The BHF Southern African Conference July’07 Sun City

2. Strategic Challenges Marketing technological innovations
New product introduction – timing – urgency.
Competitive edge from being first to market.
Expenses accrue to the market leaders.
Relatively short business and product lifecycles.
Strength of clinical acceptance (evidence; endorsements etc).
Priorities within the product portfolio – risk assessment.
The BHF Southern African Conference July’07 Sun City

3. The BHF Southern African Conference 22-25 July’07 Sun City
HTA’s – a cost driver??
Highly fragmented – never achieve consistent outcomes
Inappropriate EBM strategies – inconsistent criteria
Economic evaluations (cost effectiveness) and limits
The notion that this information is intellectual property.
Understanding the market – a thumb suck??
Access to epidemiology data.
Tells us about the opportunity.
Is there a “sustainable” market.
Useful for an informed pricing strategy.
Funding – too complex to contemplate??
Alternative reimbursement models
Lack of timely mechanism for introduction
Risk sharing, motivations and pre-authorisations
Cost shifting, rather than reduction
Disincentives for adopting new technologies
Disruptive innovations – not in my back yard??
Viewed as potential threat
Impact traditional cash (holy) cows
Low prices (higher profits) prevail.
Squaring
the Circle
C h a l l e n g e s
The BHF Southern African Conference July’07 Sun City
The BHF Southern African Conference July’07 Sun City

4. Solutions…..? Demographics Information Innovation Standard of Living
Best practice
Standard of care
Increase knowledge
Share data
Manage patients at
medical condition level?
Demographics
(aging population)
Information
(educated consumer)
Innovation
(technology)
Standard of Living
(quality of life expectations)
Clear consistent expectations
Limited diffusion (COE’s)
Observational studies
Local HTA’s
Beware low cost incentive
POSITIVE
SUM
VALUE
COSTS
OUTCOMES
Relative price effects
(skill intensive)
Lifestyle
(abuse)
Skills development
Supplier activity
Guidelines
Pay for performance
Reward specialisation for
economies of scale
Promote best SOC
Manage “BTE’s”
In/out of network referral
Structure
(incentives)
Dreaded Disease
(HIV/AIDS)
The BHF Southern African Conference July’07 Sun City

5. Start now……….! Thank you! Mark Brand
The BHF Southern African Conference July’07 Sun City