Paul Trueman, VP Market Access, Smith & Nephew

The role of manufacturers in delivering improved outcomes and efficiency

Medical technologies have a major role to play

in delivering improved outcomes

Increased life expectancy

Improved quality of life

Improved mobility

Cosmesis, self-

confidence

Source: OECD Health data

South Africa spends between 8-9%

of GDP on healthcare

What is the contribution of medical

technology?

Medical Technology contributes to

increasing healthcare expenditure

However, the majority of the increase is

attributable to:

1. Increasingly prevalent conditions, such

as obesity, diabetes, heart disease;

2. Increased case finding and a lower

threshold for intervention, for example in

the blood pressure control.

2020

Funding

needed

2010

Funding

available

FUNDING

GAP

ZAR

Mind the gap….

The challenge is to be able to treat more patients with the same

resources

Delivering ‘more for less’ through medical

technology

Improve

clinical and

patient

outcomes

Improve

efficiency – i.e.

save money

Measuring costs and outcomes

Cost Difference

Effect

Difference

-

-

+

Trading up

More for

less

Trading

down

Being

stupid

Measuring costs and outcomes

Cost Difference

Effect

Difference

-

-

+

More for

less

Trading

down

Being

stupid

Majority of new

technologies

fall in the top

right quadrant

Measuring costs and outcomes

Cost Difference

Effect

Difference

-

-

+

Trading

down

Being

stupid

Easily adopted

technologies

need to deliver

‘more for less’

How can manufacturers deliver ‘more for

less’

Step 1: understand your customers’ unmet needs

• Market research

• Audits of current practice

• Analysis of patient outcomes

• Review of published literature

How can manufacturers deliver ‘more for

less’

Step 2: involve customers in product development

• Test the ‘value proposition’ offered by your product

• Listen to customers’ problems and challenges

• Consider how you can offer a product driven solution

How can manufacturers deliver ‘more for

less’

Step 3: deliver a solution – not a product

• Solution typically tech-driven but may also need additional materials to support adoption

• Treatment pathways to promote optimal use

• Education/training for staff and patients

• Monitoring of the impact of adoption

• Help with service re-design processes

Delivering ‘more for less’ means breaking

down the budget silos….

Many innovative medical technologies are more expensive than the existing technology but can create savings in:

• Hospitalisations

• Theatre time

• Staff time

• Co-medications

• Lost productivity

Healthcare payers need to be creative in breaking down budget

silos to support the adoption of new technologies.

Releasing nurse time through innovative

products

Pre- post-evaluation of a novel wound dressing designed to promote patient well-being and better use of nurse time.

• Pre-evaluation dressing wear time ~2.1 days

• Post-evaluation dressing wear time~3.7 days

• Releases one nurse visit/patient/week

• Result: saving of almost 400 nurse hours/week across the region

• ~10 full time nurse equivalents released

Stephen-Haynes et al 2013

Conclusion

To fully realise the impact of innovative technologies requires collaboration between:

• Device manufacturers

• Healthcare professionals

• Payers.

• Working in partnership can deliver the optimal clinical and economic outcomes for society.