Value-based care is disrupting the old fee-for-service models in the U.S. healthcare industry, and medical device makers must adapt or perish. Here’s how wound care company Acelity is responding.
The rise of value-based care in the U.S. is causing a major shift in the medical device industry. Health provider customers want to know how medical devices are going to improve overall efficiency and quality of care, so device makers are investing in often service-related products that are not traditionally “money makers.”
Medtech companies are also acknowledging that within an event of care, there are millions of little details that have the potential to achieve better health outcomes.
Joe Woody has been in the industry for more than 25 years, and he has seen how those details, when missed, add to the overall cost of care. Five years ago, he accepted the CEO position for what used to be KCI and has since transformed into Acelity. (Before that, he was global president of vascular therapies for Covidien, and before that, global president of the wound care business for Smith & Nephew.)
Acelity is involved in wound care and regenerative medicine, but Woody says the company is refocusing and has decided to create products that fit the “wound care continuum.” To that end, the regenerative medicine business, LifeCell, was recently sold to Allergan and 3 years ago, Acelity bought J&J’s wound care business Systagenix. “We want to cover VAC Gherapy, dressings, biologics—really anything and everything that has to do with a wound.”
Within that goal of covering the continuum of care is the larger calling to tie everything Acelity does to disrupting fee-for-service and furthering value-based care. “A few years ago, we really took a look at the way we innovate in terms of lowering the cost of care,” Woody says. That means “proving, not just saying, to customers that our products really get the best clinical outcomes.”