Michael Monovoukas, CEO & Co-Founder, AcuityMD11.30.23
The multibillion-dollar global medical technology industry (medtech) has become critical to the healthcare sector as it continues to improve and save millions of lives around the world. Between 2007 and 2021, the industry boomed, growing from approximately $316 billion to $574 billion; it is forecasted to reach $677 billion by the end of 2024. With technological advancements driving this dynamic and ever-evolving industry, there are several trends taking hold that will influence medical device development and commercialization moving forward.
The result is a wide dispersion of surgeries, requiring reps to spend more time driving long distances and adding to their already long daily transit hours. Artificial intelligence (AI) and large language models (LLMs) will help reps make better use of this “dead” time by enabling hands-free audio productivity. When they are driving, reps will be able to listen to their AI-based system to prepare for their upcoming meeting, respond to email requests, and more. The top-performing reps will leverage LLMs to be dramatically more efficient and make the most of their longer travel stretches.
Looking beyond 2024, AI may also bring a similar audio experience into the operating room, audibly guiding surgeons what screens to view when, and capturing surgical context that can be automatically transcribed into notes for highly individualized post-operative care.
In 2024, medical device manufacturers will seek dynamic solutions that incorporate data, software, and analytics to prompt and drive commercial actions in real-time. In addition, medtech companies will focus on measuring and tracking ROI for these expenditures. The resulting metrics will fuel future purchase decisions so they are based on verifiable insights—which is good for everyone, not just the corporate bottom line.
Today, the blazing success of Wegovy and Mounjaro has electrified the pursuit of new treatments for obesity. Novo Nordisk and Eli Lillyare leading the market with injectable drugs that target receptors of the GLP-1 hormone to mimic the hormone's effects of helping people feel full. As these weight loss drugs flood the marketplace (and oral alternatives launch) in 2024, we may start to see early signs of their impact on surgical interventions, like bariatric surgery. Further, how we treat diabetes will undergo a fundamental change, potentially reducing the volume of patients requiring treatment.
Over time, it remains to be seen what the long-term impact will be on other types of surgeries, including orthopedic, cardiac, or vascular interventions. On the one hand, the incidence rate of patients needing certain surgical interventions may decline as the obesity rate declines. On the other hand, with fewer comorbidities, more patients may become candidates for surgery and can expect better overall surgical outcomes.
Michael Monovoukas is the co-founder and CEO of AcuityMD. Prior to launching AcuityMD, he was a medtech entrepreneur. He also held a leadership role at PatientPing, a leading provider of Care Coordination software. Monovoukas started his career as a management consultant at Bain & Company, where he advised leading life sciences companies on growth and commercial strategy. He received his M.B.A. from Harvard Business School and his B.A. in Public Policy and Finance from Princeton University, where he was Captain of the Varsity Swimming and Diving Team. Monovoukas can be reached at mike@acuitymd.com.
Trend #1: New Healthcare Landscape and Advancements in AI/LLMS
In 2024, field sales reps will spend more time in transit as the makeup of their territories changes to reflect a new type of healthcare landscape. Notably, ambulatory surgery centers (ASCs)—a safe, convenient, and inexpensive alternative to hospitals—have and will continue to grow, especially as more medical technology manufacturers engineer more streamlined robotics products (i.e., Livsmed’s ArtiSential system) that fit the smaller footprint of ASCs. Already, ASCs perform more than half of all U.S. outpatient surgical procedures. Since Q1 2018, total knee and total hip arthroplasty (TKA/THA) procedures performed at hospitals have decreased by1.3% per quarter, whereas ASC volumes have steadily increased by 5.4% per quarter. ASCs now perform over 15% of TKA and THA surgeries in the U.S., plus an increasing number of other types of outpatient procedures.The result is a wide dispersion of surgeries, requiring reps to spend more time driving long distances and adding to their already long daily transit hours. Artificial intelligence (AI) and large language models (LLMs) will help reps make better use of this “dead” time by enabling hands-free audio productivity. When they are driving, reps will be able to listen to their AI-based system to prepare for their upcoming meeting, respond to email requests, and more. The top-performing reps will leverage LLMs to be dramatically more efficient and make the most of their longer travel stretches.
Looking beyond 2024, AI may also bring a similar audio experience into the operating room, audibly guiding surgeons what screens to view when, and capturing surgical context that can be automatically transcribed into notes for highly individualized post-operative care.
Trend #2: Increased Demand for Clear Return on Investment
While the medtech industry continues to advance, companies will still be challenged by the financial instability experienced in 2023 and will be pressed to prove the return on investment for every major purchasing decision. More specifically, data and software purchases that were previously largely unchecked will now be considered with increased scrutiny. Buyers will need to justify their expenditures, which will cause them to carefully re-consider how each data purchase will be used and what outcomes it will drive. Historically, medtech companies would purchase static datasets from legacy providers with little visibility into the overall value generated from the purchase.In 2024, medical device manufacturers will seek dynamic solutions that incorporate data, software, and analytics to prompt and drive commercial actions in real-time. In addition, medtech companies will focus on measuring and tracking ROI for these expenditures. The resulting metrics will fuel future purchase decisions so they are based on verifiable insights—which is good for everyone, not just the corporate bottom line.
Trend #3: Deeper Collaboration with Integrated Delivery Networks
The flurry of merger and acquisition activity among healthcare providers this past year created a consolidation of purchasing power often managed by integrated delivery networks (IDNs). As a result, medtech companies have started expanding their national account teams to provide a single point-of-contact for IDNs and other key accounts. In 2024, successful medtech companies will further partner with IDNs and offer bundled, cross-specialty solutions through more innovative contract structures. Companies will empower their national account leaders with better data, insights, and software to help them design new contract structures, operationalize these contracts with field sales teams, and collaboratively monitor the contracts with their IDN or key account partners. National accounts leaders will increasingly serve as quarterbacks for field sales teams across different business units and trusted advisors to the IDN stakeholders involved in contracting or purchase decisions.Trend #4: Breakthrough Products Will Impact Healthcare Supply-and-Demand
A single event can have a material impact on the entire healthcare system, including medical device manufacturers. For example, smoking cigarettes has decreased by about half—from20.9% in 2005 to 11.5% in 2021 (the latest CDC data)—and not surprisingly, there’s been a commensurate decline in certain cardiac interventions per capita.Today, the blazing success of Wegovy and Mounjaro has electrified the pursuit of new treatments for obesity. Novo Nordisk and Eli Lillyare leading the market with injectable drugs that target receptors of the GLP-1 hormone to mimic the hormone's effects of helping people feel full. As these weight loss drugs flood the marketplace (and oral alternatives launch) in 2024, we may start to see early signs of their impact on surgical interventions, like bariatric surgery. Further, how we treat diabetes will undergo a fundamental change, potentially reducing the volume of patients requiring treatment.
Over time, it remains to be seen what the long-term impact will be on other types of surgeries, including orthopedic, cardiac, or vascular interventions. On the one hand, the incidence rate of patients needing certain surgical interventions may decline as the obesity rate declines. On the other hand, with fewer comorbidities, more patients may become candidates for surgery and can expect better overall surgical outcomes.
Trend #5: Access to Data Will Diversify Workforce
By giving sales teams access to commercialization platforms with real-time data, medtech companies will not only improve performance, but will empower all team members to succeed by breaking down barriers to valuable insights. Democratizing data will also widen the recruitment pool to include both seasoned sales reps and those new to any given therapeutic area or even the medtech industry. While hiring managers will always turn to tenured reps who have established relationships with customers, they will also consider newer reps who exhibit strong sales characteristics, like grit, tenacity, and resilience. Providing equal access to data will also help minimize the impact of sales rep turnover, with new team members being able to quickly follow up on opportunities in the pipeline and making informed decisions based on past actions and feedback.Industry Poised to Excel
Despite the challenges of the current economic landscape, the medtech industry is positioned to excel and continue to create value for physicians, patients, and other stakeholders. It’s an exciting time to work in this industry with rapid scientific breakthroughs and innovations in surgical robotics and AI. I expect 2024 to continue these important advancements.Michael Monovoukas is the co-founder and CEO of AcuityMD. Prior to launching AcuityMD, he was a medtech entrepreneur. He also held a leadership role at PatientPing, a leading provider of Care Coordination software. Monovoukas started his career as a management consultant at Bain & Company, where he advised leading life sciences companies on growth and commercial strategy. He received his M.B.A. from Harvard Business School and his B.A. in Public Policy and Finance from Princeton University, where he was Captain of the Varsity Swimming and Diving Team. Monovoukas can be reached at mike@acuitymd.com.