Part 1: The 3 Universal Healthcare Needs

Part 1: The 3 Universal Healthcare Needs



value-based healthcare is not a foreign topic but one that does require some level of clarity and some level of common thinking framework around it to make sure that we can make progress towards that end let me start first with this topic of value-based healthcare I'll start with a perspective that we've built at Medtronic but really it's a perspective that everyone has it's common to everyone and we've simply put some words and language together to unify the thoughts and these are the three needs that we think are common in healthcare needs there are probably enduring over time and needs that anyone in healthcare anywhere in the world whatever their own position is or whatever kind of stakeholder they are they will gravitate and try to fulfill one or more of these three what we call universal healthcare needs the first is is very important to recognize because that forms a backdrop for healthcare that we collectively have a quest to improve clinical outcomes in other words make our health better this is nothing new this we've had forever for centuries in millennium people have wanted to live longer get better for illnesses quicker and being inventive about how we do those things we just must never forget that this is essentially the essence of healthcare it's also the essence of how our company was formed in the collaboration between an engineer and a physician to create use technology to change outcomes so that always remains at the center of our thought process that however is not enough there are other problems in healthcare the second one that's equally compelling and important and and in many ways people don't look at it in that way is the fact that there is inequity in an access to healthcare around the world which is something that you know we all should take responsibility for and should really you know tolerate just in Canada itself there's a difference in access between different populations not only in different regions but even within cities and this is not always a matter of affordability there are situations where people can afford the healthcare the government pays for healthcare and yet access is not the same you know I tell a story that in the City of London in England you go from the west of London to the east of London and there about seven or eight subway stations or tube stations and in every one of those you lose a year of expected lifespan and here's a country where everything's supposed to be paid for and you've got equal access and their hospitals it's not a you know it's not some kind of emerging market and that's because there is an inequity in healthcare and of course if you expand this problem globally and you look at underserved populations around the world you know the problem kind of magnifies by orders of magnitude so again our ability to equalize access it's not a trivial problem and one that we shouldn't take lightly however the third issue is that even in that context our ability to improve clinical outcomes and new ways to provide access we find that what we do is not efficiently delivered there's wastage in the system and that is what we mean by optimized cost inefficiencies and and all now put that third in the list it actually is rapidly becoming a constraint and eventual constraint in our financials to do the first two because if you continue to improve clinical outcomes at a pace that's fairly rapid and you find ways to drive access but we're inefficient in the way we do this at some point the cost burden will become prohibitive in developed markets in developed countries such as Canada and certainly in the United States is becoming more and more important and it's a big subject of discussion as I'm sure you're all aware of and people make different trade-offs you know in some countries because of the cost burden they trade that off with waiting times which is essentially access in other countries they simply spend the more money and kind of complain about it but spend more money and then so there's different ways in which you know the pressures is sort of relieved but those methods of pressure relief are certainly not sustainable and one has to do something about it you know just increasing waiting times is not a sustainable answer nor is an arbitrary and continuous increase in cost because it takes away from other things and at some time at some point that'll stop the point is that this is oliver avoidable because it is in effect inefficiencies and wastage and if we get more granular about it and pay more attention to it we can probably use our funds more effectively and more importantly we feel that at some point in the future of value based healthcare is really achieved healthcare costs will actually go down because better outcomes which drives better quality of life and less expensive hospital visits will in fact lower the cost of health care we can funnel that money to improve access and do all kinds of other things improve prevention so that topic the topic number three which I've stated at the end because that's a result of the other two but it's soon becoming a constraint to drive things that we really want but the point is that there needs to be a level of leadership around this we feel that because our role as a company is to use technology to change outcomes if this problem is not addressed our ability our long-term sustainability believe it or not even as a company to drive clinical outcomes is hampered it is hampered for all of healthcare but certainly we're in the middle of that and so it's important for us not to sit around and wait for something to happen but to try to contribute and lead if necessary so what I'm going to talk to you today is really a proposal for healthcare it's something that we want to put out as a discussion point and demonstrate that we're willing to invest in that area to treat risk in that area to drive business models in that area and drive our company towards value-based healthcare if the system evolves by itself we can take a secondary position in that if it doesn't we'll take a primary position in that but it's extremely important to not sit around but instigate and and start a dialogue a real action-oriented dialogue in this topic and that's really the backdrop of what I'll share with you today

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *