eNews August 9, 2022The latest news affecting you and your customers… from the Independent Medical Specialty Dealers Association
Semiconductors will be made in the USA
President Biden signed on Aug. 9 the $280 billion Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act. The law aims to support domestic manufacturing of semiconductor chips. The Health Industry Distributors Association reports that a key provision of the bill applies directly to the medical device industry, which has been acutely impacted by the ongoing microchip shortage. NPR reports that the legislation provides $10 billion to invest in regional technology hubs across the country and a 25% investment tax credit for expenses for manufacturing of semiconductors and related equipment. It also authorizes roughly $100 billion in spending over five years on scientific research, including more than $80 billion for the National Science Foundation.
Mobile life-support systems to Ukraine
Toronto, Ontario-based Thornhill Medical announced it is providing humanitarian and military medical support to Ukraine of approximately $1 million through a donation of its mobile life-support system MOVES® SLC™ and mobile anesthesia delivery module MADM™. MOVES SLC is said to extend the critical care window when treating people critically injured during a natural disaster or in a conflict environment. The unit combines an oxygen concentrator, a O2-conserving ventilator, suction and complete vital signs monitoring.
Pulmonary embolism in some kids with Long COVID
Long COVID increases children’s risk for several serious conditions, although the conditions remain rare, according to the Centers for Disease Control and Prevention, according to Healio. Among the conditions, acute pulmonary embolism, myocarditis and cardiomyopathy, and venous thromboembolic event were all around twice as likely to befall children and adolescents who had experienced COVID-19 than their peers who had not.
Breakthrough designations in 2022 could set a record
The Food and Drug Administration is on course to deliver a record year for breakthrough medical device designations, reports MedTech Dive. At the midpoint of the year, the agency had granted 129 designations, putting it on track to break the previous full-year record of 206. Neurology devices accounted for 12 of the breakthrough status awarded in the second quarter, making it the most active clinical area for new designations over the period. Cardiovascular disease remains the most active area in the Breakthroughs program, while neurology is closing the gap. The FDA granted six breakthrough device designations in orthopedics, the third most active area of the program.
From the 2022 IMDA/HIRA Conference
For the CFO, it’s more than numbers
Healthcare is a risky business, particularly now, given inflation, monkeypox, COVID (still), labor shortages of epic proportions, ransomware attacks, supply chain backups, and shrinking operating margins. To today’s healthcare CFO, almost every move forward is a bet, a gamble, speaker Todd Nelson, chief partnership executive for the Healthcare Financial Management Association, said at the 2022 IMDA/HIRA Annual Conference in Itasca, Illinois. But it takes uncertainty to shake things up, and that could be an opportunity for specialty dealers and reps.
For CFOs, the bottom line has always been about minimizing the cost of delivering optimal health outcomes. It’s bigger than trying to lower the purchase price of supplies and equipment, he said. After all, social determinants of health – poverty, food deserts, violence, inadequate housing – contribute 60% to health status, compared to health services, which contribute about 20%, and genetics, another 20%). So as providers work to address their own labor and non-labor costs, they’re also questioning to what extent they should address the economic stability of the patients in their communities, including education, transportation, housing and more.
Given all that is on the minds of CFOs, specialty dealers need to keep the following in mind, said Nelson. First, it takes time to develop a relationship with a CFO. So be patient. Understand and acknowledge the pressures facing the CFO and their health system. Second, respect the time of the CFO. (Be brief!) And third, be ready to articulate how you, your company and your products create value (e.g., quality, cost, availability, time-savings, etc.).
Finally, specialty dealers should be ready to identify the non-financial benefits of their company and technologies:
- Will your technologies contribute to community health wellness?
- Will they enhance the image and reputation of the health system?
- Can they help the health system increase market share?
- Will they help lead to improved outcomes?
- Can they contribute to physician and clinician satisfaction with the health system?
- Will they contribute to the provider’s risk-reduction efforts?
Numbers are important to CFOs, said Nelson. But so are intangibles.
Watch future issues of IMDA eNews for more reporting from this summer’s IMDA/HIRA conference.