Over 270 Attracted to October 28 Healthcare Reform Event on Impacts to Medtech Innovation & Care, Delivery & Services

In an adaptation of the Cluster Series, The Collaborative presented a two-panel breakfast focusing on healthcare reform and it’s potential impacts, opportunities and challenges on our robust Minnesota healthcare innovation clusters. The Collaborative Reform Series event attracted over 270 CEOs, executives, investors, entrepreneurs and healthcare professionals.

The first healthcare reform panel, “Care, Delivery & Services Impacts,” focused on the impacts to care, delivery, automation, outcomes, prevention and payor models. Panelists included:

Healthcare reform is an exciting, daunting, confusing and monumental national debate and could have huge impacts on Minnesota healthcare delivery and services. Panelists discussed the current challenges facing the healthcare system and the potential impacts of healthcare reform on Minnesota’s economy and citizens.

Panel 1 (L-R) Jeff Saunders, Pat Geraghty, Tony Miller, Ken Paulus and Jim Woodburn

There was much to discuss regarding the current proposed reform measures and their impacts. Panelists agreed that there are opportunities for reform but expressed concern over the proposed legislation. One area that Minnesotans can directly increase the effectiveness of a healthcare reform initiative is personal responsibility, which can also dramatically change the care and delivery models. Woodburn noted, “We all have a responsibility to manage our health, and one impediment is the access to information. The web is an actionable place to get info and reduce the stress on the primary cared facilities.”

The panel also debated the importance of access and affordability in the healthcare system. Paulus stated, “Reform needs to be two-part: first, get everyone insurance - the access must come first, and then look for ways to make healthcare more efficient.” Miller countered, “Healthcare should not be focused on accessibility first, but affordability. Focus on affordability and redesign the system from the ground up.”

Despite the uncertain future for healthcare reform, the veteran panel discussed numerous ideas that could positively change the way care would be delivered in Minnesota. Geraghty said, “We need to make a significant investment in prevention and wellness. We need to move away from the fee for service model, and focus on payment reform.” Woodburn spoke of online innovations and their impact on the healthcare system, “Minnesota is ripe for delivering innovative solutions to the marketplace. Creating and fostering service organizations and idea exchange forums this like should be our work.”

Following a brisk networking break, the second panel, “Medtech Innovation Impacts,” addressed medical technology, devices and innovations and the impacts of the FDA leadership, reimbursement protocols and potential tax models. Panelists included:

Panel 2 (L-R) Tom Letscher, Doris Taylor, Kris Johnson, Nadim Yared and Jay Graf

The panel began with a discussion on the innovation environment in Minnesota and what challenges the proposed healthcare reform could bring. Taylor said, “Innovation in healthcare is the future - Minnesota has a history of thinking outside the box in medical technology - and is willing to take on high-risk potentially high-reward research.” The proposed healthcare reform brings with it a set of challenges, including the lack of clarity around regulations on innovation and the increased hurdles to getting a technology off the ground. Johnson said, “Without giving the innovation a chance to develop and grow and change, we are cutting off what could be very vital and important innovations and developments for the future.”

The expert panel also delved into FDA regulations, reimbursement protocols and the rising cost of product trials and their impact on innovation in Minnesota. “The FDA has had a significant impact on the business model of medical innovation -- no one would argue the environment is difficult. The increasing cost of product trails in recent years has become a major barrier for innovation,” Yared noted. Taylor spoke of her experience on a FDA board, saying, “The FDA is under the pressure of public opinion. If a therapy is approved, and there is a problem, the FDA is the first to get criticized. We need to find a way to realign the liability so the risks make sense.”

FDA regulations are impacting the rising costs for companies and if the return on investment is uncertain, the company becomes less attractive to investors. Fewer investments mean less innovation. Graf added, “By cutting spending you are cutting the rate of innovation. Healthcare that looks like Europe would greatly diminish or destroy the appetite for investment in medtech in the U.S. Companies would not be able to afford to invest in R&D and innovation would suffer.”

The Collaborative was pleased to host such an informative and well-attended Reform Series event and would like to thank our co-sponsors who made this event possible: Dorsey & Whitney, Oppenheimer Wolff & Donnelly, the Minnesota Department of Employment and Economic Development and Twin Cities Business.