1. john brennan

In What Ways Can Modern Medical Technology Contribute To Achieve A Sustainable Healthcare SystemJohn Brennan, Director Regulations and Industrial Policy, Eucomed1st Pan-Hellenic Medical Technology Forum, 5th November 2014, Athens, Greece

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




• 80% SME-based.

• Employ 575,000 people in Europe alone.

• Over 500,000 MDs products on the European market.


6




• 80% SME-based.



• Large amount of MDs invented in in Europe

• Patent application filed every 38 minutes in Europe


7




• 80% SME-based.



• 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.

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

8

Working versus pensioned population (65+)

9

Shortage of health workers in the EU

10

Source: Directorate-General for Health & Consumers31 May 2011

Ageing populations are driving change in healthcare

11

Increase of chronic andMultiple diseases

AGEING POPULATIONS

Budget constraintsHealthcare worker

shortages

Europe’s Healthcare models need to adapt

12

Better health More people

Constrained budgets Fewer carers

New approach in healthcare management models

Q: What about industry – Has Industry Adapted?

13

“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

A: Yes

Industry: Changing our mind-set and business model

14

VirtuousCircle

3. Invest in knowledge transfer to optimize

healthcare delivery with HCP / institutions for patients

1. Embrace cost efficiency and health outcome needs of payers & policy makers

4. Achieve and demonstrate cost efficiency and health

outcome goals for payers & policy makers

2. Fulfil stakeholders’ needs through value

based innovation

15www.medtecheurope.org

Traditional R & D Model

How can Medical Technology Innovation Help?

Physician-driven solutions• Physicians identify what they need

• MedTech makes it happen

www.medtecheurope.org 16

…served patients well

Traditional R & D Model



‘Technology Push’ R & D Model


Possibility-driven solutions


• Tech companies are looking at what

innovative technologies can do …

… Provide amazing solutions.

Technology Push R & D Model



A different R & D Model


Value-based Innovative Products


Where we are going if…

…R&D targets technology for the wellbeing of patients and sustainability of Health Systems.

A different R & D ModelValue-based solutions

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 solutionswith Innovation focused on

Economical & Societal Contribution

Where can we support Change

23

Q: Can Modern Medical Technology Contribute to Achieving A Sustainable Healthcare System?

24

A: Yes and We need the Right Platforms

THANK YOU

[email protected]

Backup Slides

Current trends… if we don’t change…

29

Euro per year per capita

GDP

Healthcarecosts

2010

GDP

2030currenttrends

GDP

MedTech Costs

If we do change…Benefits of embracing Value-Based Innovation

3030

Euro per year per capita

30

GDP

Healthcarecosts

2010

GDP

slowgrowth

acceleratedincrease

healthcarecosts

2030currenttrends

GDP

additionalgrowth

stableincrease

healthcare costs

2030changedpolicies

GDP

Increased investment in

MedTech innovation

reduced healthcare costs

extra growth

Higher efficiency in HC systems and slower increase of total HC

costs

Gains from higher productivity, late retirement etc..

MedTech Costs

1. john brennan

Business