Medical Devices Go Global: Good for Business and Health?

The Emergo Group is an international health care consulting firm who specializes in helping clients bring their medical devices to market. Headquartered in the US, we recently mentioned that they've expanded their European operations.

Now they provide us, free no less, with a survey of how some 1800 professionals in the medical device sector view prospects for 2011. These are industry folks in the know: Mostly in the category of President/CEO/Managing Director, Regulatory/Quality/Clinical, and Sales/Marketing/Business Development; and they represent every continent on the planet (except Antarctica).

Some of the findings about activities in 2010:

-37% have seen increases in domestic sales increases, versus 26% who saw decreases (the rest weren't sure or said it was about the same)

-50% saw growth in international sales

Prospects for 2011:

-74% expect to see sales increases

-70% are very or somewhat positive about business environment for their industry

-56% anticipate adding more employees

70% anticipate wage increases for all employees

-68% will enter a new international market

-The hottest new markets are China, Brazil, and India (not counting the legendary land of "Cannot Disclose")

-Those three top markets are all viewed as having highest growth potential, naturally. Most of Europe and Canada are viewed as having comparatively little market potential, and the US is viewed as so-so (about half the number of folks who thought of Brazil, and a third that of China)

-No region was viewed as particularly easy in the area of regulatory hurdles, which of course spells good business potential for folks such as the Emergo Group who can help you jump, or drag yourself painfully, over such hurdles.

Employee training for device makers and marketers is likely another secure niche to find yourself: While 46% said they'd keep investment in training about the same as last year, 35% said they'd increase it (10% said decrease).

Good for health care?

Does all of this bode well for health care and health outcomes? That's hard to say. But in general, beyond the potential benefits from a robust economy in general, those tea-leaves are likely mixed. On the one hand more market activity has the potential to foster greater innovation (better hip replacements, for example), or lower costs.

On the other hand as the health care industry develops more products, it tends to use them, regardless of whether there's truly a need, or whether the new is any better than the old. Those could be the not-so-beneficial health care side effects sometimes called "supply-induced demand": That's when doctor and hospitals operate on the assumption that "If I've got it, you get it, whether you really need it or not."

Read their full report here.

Insights? Comments? Alternative viewpoint? Please share!