Author: Team

Insurers continue to mislead on devices

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“The devices industry was the sole contributor to lower private health insurance premium increases both in 2017 and in 2018. MTAA’s Agreement with the Government is on track to exceed $1.1 billion in expected savings,” said Ian Burgess, CEO of the Medical Technology Association of Australia (MTAA) today.

“The claim that the listing of new, innovative and more clinically effective technologies is somehow a negative, is completely absurd and demonstrates that the insurers have lost focus on patients,” Mr Burgess said.

Meanwhile, insurer profits continue to increase, with NIB reporting a 9.2 per cent increase in annual profit recently to $201.8 million, with a share price increase of 31 per cent over the past six months, and Medibank Private’s share price up 16 per cent.

The recently released AlphaBeta report, Keeping Premiums Low: Towards a more sustainable private healthcare system, found that insurers have collected 50% more profit from each of their members over the past five years, far outpacing the 21% growth in benefits paid out.

It also found that private health funds have not extracted sufficient economies of scale in the wake of significant revenue growth and many funds are well above the industry average of 9% in operational expenditure, this includes an estimated marketing spend of $400 million.

“After tax profits for insurers are up 15% over the past three years as affordability for ordinary Australian families goes down,” Mr Burgess said.

“Patient and clinician choice is a key part of the value proposition of private health insurance, one that risks being eroded by the false claims made by insurers about the cost of devices,” said Mr Burgess.

“The medical technology industry believes access to a full range of medical technology is one of the key benefits of having private health insurance and we’re committed to helping ensure all Australians lead healthier and more productive lives,” Mr Burgess concluded.

A Conversation with AlphaBeta’s Andrew Charlton

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Andrew has senior experience in business, government and international institutions. After commencing his career with the Boston Consulting Group (BCG), he received a Doctorate and Masters in Economics from the University of Oxford, where he studied as a Rhodes Scholar. From 2008-2010, through the period of the global financial crisis, he served as senior economic advisor to the Prime Minister of Australia and Australia’s senior government official to the G20 economic summits. He was the prime minister’s representative to conferences of the United Nations Framework Convention on Climate Change (UNFCCC) and the Major Economies Forum on Energy and Climate (MEF). From 2010-2014 he worked for Australian conglomerate Wesfarmers, including two years in corporate strategy (M&A and major group projects) and two years in operational roles (divisional Chief Financial Officer and General Manager).

Andrew’s academic research covering international economics, trade and development has been published in leading international journals including the American Economic Review, World Trade Review and World Economy. He is the author of two books, Ozonomics (2007) and Fair Trade for All (2005), co-written with Nobel laureate Joseph Stiglitz. In 2011 he was named a Young Global Leader by the World Economic Forum.

MTAA AGREEMENT DELIVERING SAVINGS

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[vc_row][vc_column][vc_column_text]As reported in the media recently, private health insurers have seized on the June 2019 APRA Prostheses List (PL) data to claim that volume growth is excessive and savings under the MTAA-Government Agreement have not been realised.

The claims made by private health insurers are false. These are the facts:

  • Savings on the PL in the premium year 2018 were $224 million, $35 million more than forecast under the Agreement
  • Volume growth of 8.6% to June 2019 is not significantly different from the compound annual growth rate of 7.8% over the last 10 years
  • Average benefits have dropped 16% since Quarter 4 2016 from $794 to $665, and is expected to fall further with more cuts to come in 2020.

“The medical devices industry has made the only direct contribution to keeping the cost of private health insurance down, delivering the lowest premium increase in 18 years,” said Ian Burgess, MTAA CEO.

“The cost reductions are a direct result of the $1.1 billion dollars in cuts delivered by MTAA through the Agreement and demonstrate MTAA’s active contribution to the affordability of healthcare in Australia,” Mr Burgess said.

Meanwhile, insurer profits continue to increase, with NIB recently reporting a 9.2 per cent increase in annual profit to $201.8 million, with a share price increase of 31 per cent over the past six months, and Medibank Private’s share price up 16 per cent.

“Insurers are once again misrepresenting the savings delivered to them under the Agreement in order to avoid a reduction in their considerable profit margins,” said Mr Burgess.

MTAA commissioned the AlphaBeta report to constructively identify areas for savings to keep private health insurance sustainable.[/vc_column_text][/vc_column][/vc_row]

TGA releases 2019-2020 Business Plan

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[vc_row][vc_column][vc_column_text]The 2019-2020 plan details how TGA intends to advance the Government’s Regulatory Reform Agenda.  Of particular note in the plan is the implementation of the Action Plan for Medical Devices, a significant program of regulatory reform, also with a focus on greater transparency and more consumer involvement in the regulatory process.

Some of the key actions included in the plan are:

  • how TGA intends to meet public expectations in relation to the safety, efficacy, performance, quality and timely availability of therapeutic goods
  • how TGA is responding to innovation in therapeutic goods and emerging public health issues to maintain the best possible outcomes for the Australian public
  • implementation of the Action Plan for Medical Devices
  • international collaboration between regulators to build regulatory best practice, increase collaboration on product reviews and post market monitoring as well as influencing international regulatory policy
  • ongoing education and better, clearer regulatory guidance for industry
  • how TGA plans to undertake appropriate and targeted compliance and enforcement activities.

Should you have any questions or comments in relation to the Business Plan please contact RegulatoryEngagement@health.gov.au[/vc_column_text][/vc_column][/vc_row]

U.S. DELEGATION VISITS AUSTRALIA

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Based in Washington D.C., the U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million business of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

The delegation, comprised of representatives from the U.S. Chamber of Commerce’s member companies, was in Australia as part of the GIPC’s efforts to champion innovation and creativity through enhanced intellectual property standards around the world.

GIPC senior vice president Patrick Kilbride said that now at the beginning of the new term of the 46th Parliament was an ideal time to discuss with the nation’s key decision-makers the importance of Australian ideas, innovation and local intellectual property to competitiveness in a globalized knowledge economy.

“In today’s dynamic and disrupted global economy, IP and innovation are of paramount importance, particularly in relation to economic growth and development,” Mr. Kilbride said.

“Australia and the United States have a long history of mateship and collaboration, with many shared values particularly around innovation and IP, generating jobs, fostering mutually beneficial trade and protecting our own sovereign capabilities. It is important to continue the dialogue about ways Australia and the United States can continue to work together to further foster our tremendous bilateral partnership.”

The U.S. delegation discussed with key decision-makers the International IP Index, produced by the U.S. Chamber of Commerce, which benchmarks the IP environment in 50 global markets around the world.

The Index spotlights key elements of Australia’s regulatory environment for IP that significantly impact the viability of biomedical research, Australia’s attractiveness for foreign investors and the production of new lifesaving cures.

Accordingly, GIPC is calling for Australia to enhance its patent notification system to add transparency and predictability to the supply of innovative, new medicines. Strengthening these elements of Australia’s IP regime would help life sciences innovation to thrive, stimulate economic growth, and bolster Australia’s economic competitiveness.

2019 MedTech Kerrin Rennie Award goes to Medtronic

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The MiniMed 670G is an insulin pump system which automatically self-adjusts to deliver people living with type 1 diabetes (T1D) precise amounts of insulin when they need it – regardless of whether they are asleep or on the go. The only technology of its type approved in Australia, the insulin pump system intuitively administers insulin as needed and also withholds insulin release when a drop in sugar levels is detected – a long-awaited breakthrough in the Australian diabetes community in their quest to better manage the chronic disease.  The system is designed to learn an individual’s insulin needs by measuring the glucose level of people living with T1D every five minutes and to take action to minimise both high and low glucose levels. As a result, the technology requires minimal input providing peace of mind for the users.

The other Awards recipients included:

  • George Faithfull, Stryker VP of Government & Regulatory Affairs – Outstanding Achievement in MedTech;
  • Steven Flynn, Baxter Healthcare ANZ MD – Women in MedTech Champion (individual); and
  • Baxter Healthcare – Women in MedTech Champion (company).

The Outstanding Achievement Award is open to individuals who have contributed in a significant way to the development of the medical technology industry through improvement to patient outcomes or excellence in leadership and innovation.

This year, George celebrates 35 years at Stryker – an incredible achievement. This award recognises the significant contribution he has made to the MedTech industry, locally and globally over his 35 years of service.

George started his MedTech career working for Howmedica in 1984 where he held various positions across Sales, Marketing, Clinical Research and R&D, eventually progressing to General Manager. Over the years, George has hired a number of people into the MedTech Industry who have since gone on to hold senior positions for various medical companies and had a big impact on the MedTech industry themselves. During his time in the MedTech Industry, George has been passionate about learning and promoting the use of science and technology to improve patient outcomes. George has presented extensively on Regulatory requirements around the world, at Universities, Scientific meetings and Government Forums, and published papers on Joint Replacement Wear and Bone Substitute Materials.

Women in MedTech (WiMT) is a Board led initiative which started in July 2015 in response to the gap of women in leadership positions across the industry. The Women in MedTech Champion is awarded to an individual or a company who has contributed to advancing the WiMT goals, and was this year awarded to Steven Flynn, GM ANZ of Baxter Healthcare. Steve Flynn has actively championed the WiMT Agenda, serving as a Mentor within the MTAA Mentoring program which provides opportunities for female MTAA members to access leaders to assist in achieving their career goals supporting women to unlock their full potential.

The Women in MedTech Company Champion was awarded to Baxter Healthcare. For the fourth consecutive year, Baxter Healthcare was once again named among the top 100 companies in Australia for gender equality. The Australian Government’s Workplace Gender Equality Agency cited Baxter as an Employer of Choice for Gender Equality.

Baxter is committed to benchmark metrics on the ratio of women with its Senior Leadership Team in Australia currently 7 women and 11 men.

 Ian Burgess, Chief Executive Officer of the Medical Technology Association of Australia said:

 “The MTAA Annual Industry Awards are an opportunity to recognise our members and individuals who have contributed to improving patient outcomes through MedTech.

“This year we received a record number of entries, a clear indication of the hard work and innovation that goes on every day in the MedTech industry.

“It’s inspiring to be part of the medical technology industry that every day is focused on improving the health and wellbeing of patients.”

A Conversation with Stryker’s Kevin Lobo

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ABOUT KEVIN LOBO

Kevin A. Lobo has been CEO of Stryker since October 1, 2012, and also assumed the role of Chairman of the Board on July 22, 2014. Mr. Lobo joined Stryker in 2011 and had previously been Group President of Orthopaedics.

Mr. Lobo is the chairman of the Advanced Medical Technology Association (AdvaMed) Board of Directors and serves on the Board of Directors for Parker Hannifin Corporation, the global leader in motion and control technologies. He is also a member of the Business Roundtable and Business Council and serves on some community boards.

Mr. Lobo has a broad business career that includes executive positions in general management and finance. After holding finance positions with KPMG, Unilever and Kraft Canada he spent eight years with Rhone-Poulenc, including roles based in Europeas Corporate Controller of Rhodia, the chemical spin-out, and General Manager of Specialty Phosphates EMEA. He then spent eight years at Johnson & Johnson, including President J&J Medical Canada and President of Ethicon Endo Surgery.[/vc_column_text][/vc_column][/vc_row]

MedTech 2019 Sneak Peek

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[vc_row][vc_column width=”1/4″][vc_single_image image=”4052″ img_size=”full”][/vc_column][vc_column width=”3/4″][vc_column_text]

Marene Allison, Chief Information Security Officer, Johnson & Johnson, Worldwide Vice President Information Security & Risk Management

Marene Allison is responsible for protecting Johnson & Johnson’s Information Technology (IT) systems and data worldwide through elimination and mitigation of cyber security risk. This includes ensuring that the information security posture supports business growth objectives, protects public trust in the Johnson & Johnson brand, and meets legal/regulatory requirements. With 265 companies in over 60 countries, Johnson & Johnson is a leader in consumer health, pharmaceutical products, and medical devices worldwide.

Marene will provide an overview of the global landscape for cyber security and also the impacts on healthcare more specifically, focusing on where it relates to medical devices and more importantly on software for medical devices.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/4″][vc_single_image image=”4053″ img_size=”full”][/vc_column][vc_column width=”3/4″][vc_column_text]

Adjunct Professor John Skerritt, Deputy Secretary for Health Products Regulation, Department of Health

Adjunct Professor John Skerritt joined the Department of Health in May 2012 and is currently the Deputy Secretary, Health Products Regulation Group. As a Deputy Secretary, he contributes to the stewardship of Australia’s health system, as well as having direct responsibility for both the Therapeutic Goods Administration and the Office of Drug Control.

TGA’s 2019 Action Plan released earlier this year articulates the Australian national regulator’s strategy to strengthen and improve the regulatory regime for medical devices in Australia. Public consultations on proposed changes to regulations and regulatory guidelines have progressed at a sustained pace, making these the most significant changes to the medical devices regulations since the introduction of the Therapeutic Goods Act 1989. Adjunct Prof John Skerritt will provide an overview of the regulatory changes and explain the implications for sponsors, manufacturers, patients and users of medical devices.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/4″][vc_single_image image=”4054″ img_size=”full”][/vc_column][vc_column width=”3/4″][vc_column_text]

The Hon Chris Bowen, Shadow Minister for Health

Chris Bowen entered Parliament in 2004 and has held a wide range of portfolios including serving as Treasurer, Minister for Human Services, Minister for Immigration, Minister for Financial Services, Assistant Treasurer, Minister for Competition Policy, Minister for Small Business and Minister for Tertiary Education. Chris has been responsible for a range of significant policy reform programs in these portfolios. He served as Interim Leader of the Labor Party and Acting Leader of the Opposition following the 2013 Federal election and served as Shadow Treasurer. He is now the Shadow Minister for Health.

The political landscape has changed dramatically over the past twelve months. Healthcare was a key battleground for the 2019 election with both parties going to the polls with significant health commitments. With the election over and the 47th Parliament now underway, Federal Shadow Health Minister Chris Bowen will join us to discuss the ALP’s priorities for health and how they plan to hold the Government to account.[/vc_column_text][/vc_column][/vc_row]

MEDTRONIC LAUNCHES NEW WAY TO STIMULATE MEDICAL TECHNOLOGY INNOVATION IN ANZ

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Medtronic Australasia this week launched Medtronic Eureka, a web-based portal for medical technology innovation designed to help physicians and medical technology inventors bring their innovative ideas to life.

The Medtronic Eureka portal hosted on Medtronic Australia and New Zealand’s (ANZ’s)  website is designed to provide a streamlined, single entry point for idea submissions, to enable strong partnerships between Medtronic and inventors in ANZ to bring novel product concepts to market and improve patients’ lives globally. It responds to the need of physicians for a clear, simple process to have the potential of their ideas evaluated by professionals.

“Through Eureka, Medtronic seeks to increase innovation in medical technology and ensure that patients can benefit from life-saving technology. We look forward to building the future of medical technology in collaboration with local inventors by enabling novel product concepts to enhance healthcare as a whole,” said Tim Fortin, Vice President and Managing Director, Medtronic Australasia.

Over the years, innovators have fuelled many breakthrough inventions. By submitting a new idea via Medtronic Eureka, inventors are assured a fair evaluation by a team of trained, global experts. Inventors are informed of Medtronic’s initial decision regarding their idea within approximately 90 days of submission. If evaluation doesn’t reveal a fit for Medtronic, inventors can consent to allow the same idea to be evaluated by an industry independent medical device incubator – the MedTech Actuator, based in Australia or MD Start, based in Switzerland. This two-step approach is designed to ensure the best chance for the invention to be supported.

Medtronic, together with our incubator partners, is committed to supporting local medtech innovation. “Australia is amongst the global best in terms of research capability and capacity. We are energised to continue to help Australian innovators develop impactful medtech solutions for the global platform,” says Dr Buzz Palmer, CEO of the MedTech Actuator.

“We are confident that an approach focused on ANZ, which protects inventors and enhances opportunities to collaborate on innovation development, will yield excellent results and push medical technology forward,” said Mr Fortin.