HTA Explainer – Devices Vs Pharmaceuticals

[vc_row][vc_column][vc_column_text]Medical and pharmaceutical technologies have key differences which have important implications for how they are evaluated, both clinically and economically. As such, a thorough understanding of the differences that exist within both the industry and the technology is required to accurately assess the benefits associated with them.

The MedTech industry is diverse and medical procedures involving devices can be therapeutic, diagnostic, prognostic or pathological. The companies that make medical devices also differ from pharmaceutical companies in both size and number. While pharmaceutical companies tend to be large, the median size of a medical device company is less than 50 people (in the US). Medtech companies also often provide much more support to the health care providers or surgeons to ensure technical standards are met and the device is used effectively.

Medical technology is characterised by a high rate of innovation, often resulting in shorter life cycles than pharmaceuticals. This key difference can limit the opportunity for generation of clinical evidence to support marketing approval and reimbursement of devices. Innovation is often based on feedback from medical practitioners and their patients to improve an existing technology’s functionality.

There are inherent constraints in clinical trials design for devices to prove efficacy.  The large-scale, blinded, randomised, placebo-controlled trials common for pharmaceuticals are often difficult or unrealistic to perform for medical devices, particularly surgically implantable devices.

Most clinical trials also have limited patient recruitment capacity since devices typically have smaller numbers of potential end users and even fewer eligible clinical trial candidates than a typical pharmaceutical clinical trial.

Another common limiting factor is that many devices require specialised training or skills to install or monitor them. Success of the implantable device may be dependent on the skill of the surgeon implanting it, not on the performance of the device alone.

Care must also be taken when assessing the benefit and harm profile of devices compared with pharmaceuticals. The effect of a medical device is physical whereas the effect of a pharmaceutical is chemical; this poses differences in addressing adverse events. The risk posed by the device remaining in the body must be weighed against the risk of removal. Often the implants are introduced into the body via surgery and these procedures contribute to the complication of evaluation of the implants, while adverse events related to a pharmaceutical can be addressed by discontinuation of treatment or changes in dosing.

All the issues described above mean a pragmatic approach is required when assessing medical devices for reimbursement. Data may be more limited while clinician hands-on experience with the devices may be more relevant. Nonetheless, it is important that the benefit/risk profile of the devices is evaluated and an assessment is made of the value to patients and the healthcare system.

The original version of the February 2017 Prostheses Guide identified that there are differences between medical devices and pharmaceuticals and that this would be taken into account by committees and advisory groups assessing sponsor applications. Unfortunately, this was removed from the latest version published in June. As demonstrated above, the differences between devices and pharmaceuticals are very clear, and must be recognised in HTA assessment if the Prostheses List process is to be an effective enabler of patient access to valuable technology.

Devices Pharma
Industry composition Over 80% small and medium-sized companies Very large multinationals dominate
Innovation Majority of new products bring added functions and clinical value based on incremental improvements Usually large step innovation
Clinical trials Limited patient recruitment capacity due to smaller numbers of potential end users and eligible clinical trial candidates Large-scale, blinded, randomised, placebo-controlled trials
Addressing adverse events Risk posed by device remaining in the body must be weighed against risk of removal Discontinuation of treatment or change in dosing

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The Grattan Institute Confronts The Private Health Insurance ‘Death Spiral’

[vc_row][vc_column][vc_column_text]“It’s inevitable that government will have to make tough decisions about whether more subsidies are the answer to the impending crisis,” said lead author and Grattan Institute Health Program Director Stephen Duckett.

“Governments have failed to clearly define the role of private health insurance since Medicare was introduced in the 1980s. The upshot is we have a muddled health care system that is riddled with inconsistencies and perverse incentives,” Professor Duckett said.

The working paper has generated a broad-ranging set of responses, with the Consumers Health Forum CEO Leanne Wells urging the Federal Government to establish a Productivity Commission inquiry into the role of private health insurance, a call that has been echoed by a number of other healthcare stakeholders.

Australian Private Hospitals Association Michael Roff said that the report shows a lack of understanding of the private health sector to Australian health care.

“The report – which by its own admission raises questions but provides no answers – fails to understand the basics of private hospital care. This is concerning when it claims to be the basis for discussing Government support of health insurance,” said Mr Roff.

“As a basis for policy-maker decision making, its failure to understand what private hospitals offer Australians it is a poor starting point for the debate,” Mr Roff said.

Private Healthcare Australia CEO Rachel David criticized the report for being “light on solutions” and claimed to “already know what the issues are with private health and how to fix them”.

“It is time to repeat the successful collaborative effort demonstrated through the Government’s PHI reforms package,” said Ms David, who then went on to point the finger at the medical devices industry, who are to date the sole contributor to delivering the lowest PHI premium increase in 18 years.

According to Medical Technology Association of Australia CEO Ian Burgess, the costs for medical devices have fallen in every quarter since the Agreement with the Federal Government signed in 2017.

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

“The Agreement signed in October 2017 will save private health insurers $1.1 billion in payments for medical devices over the next four years.

“Recent APRA data on private health insurers shows them continuing to enjoy strong profitability, with after tax profits up almost 20% over the past three years as affordability for ordinary Australian families goes down,” said Mr Burgess.

APRA recently called out the private health insurance industry for being too reliant on lobbying government to provide solutions and underprepared for the challenges that lie ahead.[/vc_column_text][/vc_column][/vc_row]

A Conversation with Sir Andrew Dillon

[vc_row][vc_column][vc_column_text]Sir Andrew joined the NHS in 1975 and has held a number of senior management positions, including General Manager of the Royal Free Hospital and Chief Executive of St George’s Healthcare NHS Trust. He joined the National Institute for Health and Care Excellence as its founding Chief Executive in 1999.[/vc_column_text][vc_separator][vc_column_text]

Question 1 : What is NICE and your role?

 

Question 2: What is health technology assessment (HTA)?

 

Question 3: What are the processes that a medical device could go through when being assessed by NICE?

 

Question 4: Has the availability of clinical data for the evaluation of medical devices been a challenge and if so, what has been the approach?

 

Question 5: What role do medical device registries play in the ongoing evaluation of the cost effectiveness of devices?

 

Question 6: What does value-based health care mean to you?

 

Question 7: How can the medical device industry become a better participant with HTA when moving into assessment?

 

Question 8: What have been the challenges to reimbursement in HTA with software as a device?

 

Question 9: How can the medical device industry help with challenges in the uptake of good cost-effective technologies?

 

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Government Accepts Stillbirth Recommendations

[vc_row][vc_column][vc_column_text]In Australia, about 6 babies are stillborn every day, and two die in the neonatal period within 28 days of birth, due to congenital anomalies which account for almost a third of all perinatal deaths.

Rates of perinatal death have remained relatively constant since 1997. Rates of stillbirths among Indigenous women, while decreasing, are still at an alarming rate compared to other demographics.

Last year Labor Senator for NSW, Kristina Keneally, was moved to tears when discussing the Stillbirth Research and Education Report, which she said would be “part of the legacy” of those children who had been lost and their brave parents who had to endure that loss.

Australian Institute of Health and Welfare (AIHW) spokesperson, Dr Fadwa Al-Yaman, said ongoing monitoring of perinatal deaths could help build the evidence-base to drive better outcomes.

“The report provides valuable information to enable effective policy, practice and services for mothers and babies,” Dr Al-Yaman said.

The AIHW said it was also working to improve the quality of data around the contributing factors to stillbirths.

Minister for Health, Greg Hunt, said reducing the rate of stillbirth in Australia, including providing the best possible support services for families living with the tragedy of stillbirth, is a priority for the Morrison Government.

“We understand the importance of this issues not only for the women affected, but for their partners, families and the broader community,” Mr Hunt said.

Red Nose Australia CEO, Keren Ludski, welcomed the Government’s funding announcement and commended the Government for accepting all recommendations in the Senate Select Committee on Stillbirth Research and Education Report.

“The stillbirth rate in Australia is six a day – that’s one baby every four hours. Enough is enough – it’s time we made reducing stillbirth a national priority,” Ms Ludski said.

“Red Nose Day on Friday 9 August will have a significant focus on raising awareness and funds for stillbirth research, with a goal of reducing stillbirth by 20 per cent over the next three years – equalling 500 little lives saved, and I urge all Australians to get involved by buying a red nose or making a donation,” she said.

The recommendations accepted by the Federal Government include:

  • Developing a National Stillbirth Action and Implementation Plan
  • Investing in stillbirth research
  • Developing best practice and culturally appropriate resources, and
  • Working with States and Territories to make improvements in key areas including improving national perinatal mortality data collections, improving access to publicly funded stillbirth autopsies, building the perinatal pathology workforce, developing more culturally and linguistically appropriate models of care, bereavement support and protocols for public hospitals and community health services.

You can download the Federal Government’s response to the Stillbirth Research and Education Report here.[/vc_column_text][/vc_column][/vc_row]

Edwards Lifesciences Customer Service Team In The Running For Top Prize

[vc_row][vc_column][vc_column_text]The Australian Service Excellence Awards established by Customer Service Institute of Australia is the premier customer service awards event. The awards are a way to recognise best practice and innovation in customer service, highlighting its importance in today’s business climate.

In addition, Edwards Lifesciences has been nominated as a finalist at the Australian HR Awards for Employer of Choice (1-99 employees).

The Australian HR Awards celebrate the outstanding achievements of the country’s top HR leaders, companies and teams. This year, HRD received hundreds of nominations for the 20 categories that recognise outstanding contributions of best practice and leadership from right across Australia.

The winners will be announced in September and October.

Managing Director of Edwards Lifesciences ANZ, Pat Williams said:

“I am so thrilled that our customer service team has been selected as finalists. This is a recognition for their commitment to living our patient-centered Credo.

“And to be recognized as an Employer of Choice after two years of being a finalist in the Best Learning & Development category is a testament to our HR team.”[/vc_column_text][/vc_column][/vc_row]

Blood Flow Monitor Could Save Lives

[vc_row][vc_column][vc_column_text]The new micro-medical device could surpass traditional methods used to monitor blood flow through the aorta during prolonged and often dangerous intensive care and surgical procedures – even in the tiniest of patients.

The continuous cardiac flow monitoring probe, under development at Flinders University, is described as a safe way to give a real-time measurement of blood flow.

“The minimally invasive device is suitable for neonates right through to adults,” says research leader Strategic Professor John Arkwright, an expert in using fibre-optic technologies in medical diagnostics.

Professor Arkwright says the device has the potential to be a game-changer – particularly for very young babies, which are particularly susceptible to sudden drops in blood pressure and oxygen delivery to their vital organs.

“It’s a far more responsive measurement compared to traditional blood flow monitoring – and without life-threatening delays in the period ‘snapshot’ provided by current blood flow practices using ultrasound or thermo-dilution.”

Neonatal expert and co-investigator Dr Scott Morris, from the Flinders Medical Centre Neonatal Unit and Flinders University College of Medicine and Public Health, says the new sensor-catheter device promises to deliver accurate blood flow information in critically ill patients, from pre-term babies to cardiac bypass patients.

“This tiny device, which could even be used in pre-term infants, has the potential to be far superior to the intermittent measure of averaged blood flow delivered by traditional methods which generally only show time averaged flow every 30 minutes or so,” Dr Morris says.

A provision patent has been filed for the device, which is seeking industry partners for further development.

Chief investigator Albert Ruiz-Vargas hopes the device will be picked up for further development, and introduction into regular intensive care and surgical procedures.

“The proof-of-concept prototype is potentially a low-cost device which has passed initial testing in a heart-lung machine,” Mr Ruiz-Vargas says.

“It can be inserted through a small keyhole aperture in the skin into the femoral artery in individuals where heart function is compromised and is so small it can even measure small changes in flow in the tiny blood vessels of infants.

“It’s a simple design, which can give readouts similar to a pulsating heartbeat response on a laptop or nearby screen.”

For the first time, the Flinders researchers have found an effective model to continuously measure intra-pulse blood flow using a fibre-optic sensor which has the potential to advance monitoring in a medical setting.

They say more research is now required to determine how the sensor will behave under more physiological conditions and to examine different encapsulations to comply with human safety.[/vc_column_text][/vc_column][/vc_row]

Leaked Documents Expose Health Insurers

[vc_row][vc_column][vc_column_text]According to the Guardian ‘the nation’s biggest health insurers illegally rejected the claims of thousands of sick or injured Australians over seven years’.

The leaked documents were corroborated by a government whistleblower who told The Guardian that he was “going public with this story because it doesn’t seem right that the authorities say nothing to the public after finding health insurers breaking the law”.

The Consumer Health Forum slammed the “disturbing” failures and called on the Government to conduct a review into the handling of pre-existing conditions disputes.

Consumer Health Forum CEO, Leanne Wells, said whatever the rights and wrongs are of individual cases, this story will further shake public confidence in health insurance.

“This issue goes to the accountability and transparency that should be central to the health insurance system and the disclosures should prompt the Government to examine the circumstances surrounding these breaches and provide a report to the public”, Ms Wells said.

Named in the scandal were a number of well-known private health insurers, including NIB, HCF and Bupa.

Responding to questions from The Guardian, ‘the Commonwealth Ombudsman said it was restricted in commenting on individual cases’. But stated that it was “satisfied that we dealt with the matters that were referred to us in accordance with our processes”.

The Consumer Health Forum believes this latest episode underscore the need for a strengthened role for the Commonwealth Ombudsman to monitor health insurance activities.

“Central to the value of health insurance for members is the need for them to have confidence and trust in their health insurance fund,” Ms Wells said.

The news will almost certainly fuel the public’s growing concerns over the value of private health insurance, as an increasing number of Australian families continue to downgrade or drop their coverage – placing greater strain on the public health system.[/vc_column_text][/vc_column][/vc_row]

DEVICE TECHNOLOGIES RELEASES GUIDE TO MEDTECH DIGITAL LANDSCAPE

[vc_row][vc_column][vc_column_text]Medical distributor Device Technologies is championing this digital transformation, releasing a seven-part Digital Playbook. This provides insight into how changes in the digital landscape can benefit organisations in the Med Tech industry.

The Device Technologies Digital Playbook serves as a blueprint for building meaningful online consumer relationships, transforming user experience and taking a people-centric approach across various areas of business operations.

If you’re wondering how advances in technology apply to your organisation within the healthcare industry, download Device Technologies’ Digital Playbook to see how they approach digital. Be sure to follow them on LinkedIn for the next instalments.[/vc_column_text][/vc_column][/vc_row]

The EU’s New Regulatory Framework for Medical Devices

ABOUT THE SPEAKER

Diana Kanecka
Manager, International Affairs – MedTech Europe

Diana Kanecka works with the International Affairs team at MedTech Europe. Previously, Diana’s focus within MedTech Europe concerned medical devices and chemicals legislation. She holds a Postgraduate Diploma in European Union Law from the King’s College of London and a Master’s degree in Interdisciplinary European Studies/European Single Market from the College of Europe. Diana has a strong interest in trade policy and regulatory topics. She was also an active member of the European Health Parliament project where she worked with the ‘economic dimension of healthcare’ committee on development of recommendations on the future of healthcare systems.