Foundation Provides $7M for Creation of Orthopedic Initiative

The future of Indiana’s orthopedic device sector has gotten a little brighter.

A private foundation awarded a $7 million grant to create a group that will help foster the growth of the Hoosier State’s orthopedic industry. The money, according to a news release, will fund the creation of OrthoWorx, a Warsaw, Ind.-based organization described as an “industry, community and education initiative” that will advance and support growth and innovation in the orthopedic device sector.

The idea for OrthoWorx came from BioCrossroads Inc., a life sciences development group based in Indianapolis, Ind. The group proposed the creation of OrthoWorx in a Sept. 10 report that analyzed the strengths and challenges of Warsaw’s orthopedic sector. The report was funded by Lilly Endowment Inc., the foundation that awarded the grant.

“Indiana is indeed fortunate to be home to this extraordinary cluster of orthopedic companies in the Warsaw community,” said N. Clay Robbins, Endowment president. “We are pleased that a promising plan and framework have been developed, after many months of deliberation and good effort, to secure and enhance the region’s competitive appeal to the orthopedic industry now and in the future.”

The report, titled “Warsaw, Indiana: The Orthopedics Capital of the World—An overview, analysis and blueprint for future industry and community growth,” concludes that the $11 billion in annual revenue generated by the Warsaw region’s orthopedic sector represents more than half the nation’s market share and more than one-third of the industry’s $32.5 billion in worldwide revenue.

The report identifies two major challenges facing Warsaw region orthopedic firms: the squeezing of profits by healthcare reform and increased federal regulations; and technology that could one day render hip and knee replacements obsolete.

Lilly Endowment is giving the grant money to the Kosciusko County Community Foundation, which will in turn, create a charitable affiliate called the Orthopedic Capital Foundation. The Kosciusko County Foundation also will work to form a business league focused on the orthopedic industry.