How Medical Companies are Changing in a COVID-19 World

With hundreds of millions of cases and millions of lives lost, the COVID-19 Pandemic has presented a humanitarian crisis that is unmatched, creating extraordinary challenges for communities, leaders, and economies the world over.

As infections spread, health systems and companies have had to respond quickly, and sometimes unconventionally, to get products developed and approved at a critical pace, as well as finding inventive ways to communicate and co-operate to tackle the crises.

With an uncertain future, constantly shifting demands and needs, and innovations every day, here are just some of the ways that medical companies are changing in a COVID-19 world.

Supply and Demand

The COVID pandemic has put medical manufacturing companies in the spotlight, with ever surging demand for diagnostic tests, PPE equipment, ventilators, and other vital medical equipment.

In response to the increase in demand, many MedTech companies and teams have been solely focused on immediate crisis response throughout the last year. Dramatically scaling certain areas of business – such as the production of personal protection equipment (PPE) – while simultaneously adapting to the remarkable slowdown in other areas such as aesthetic procedures.  This has created a dramatic shift in the way that many medical companies operate, with extraordinary measures being taken to ramp up manufacturing capabilities and storage capacities.

Innovation and cooperation have both been of paramount importance during the pandemic, with open-source equipment design becoming a norm, partnerships forming between companies both in and out of the medical sector, and innovations such as PPE equipment with built-in virus destruction capabilities or DNA Saliva Collection Kits that mitigate risk exposure and increase long term sample stability.

Domestic Manufacturing

Throughout the pandemic, disruption to international supply chains has led to significant shortages of vital medical devices and equipment. For years, many supply chains have been established abroad, and the healthcare system is highly dependent on imports from these countries for continuing operation.

This reliance has proven to be a dangerous liability to public health security, and as such, there has been a noticeable trend towards moving from dispersed supply chain back to domestic production for key medical supplies. This switch in manufacturing is set to level up the production capabilities and scalability of many MedTech companies, increasing job prospects whilst overcoming trade barriers and ensuring market stability.

The Rise of Software as a Medical Device

Software as a medical device (SaMD) refers to software intended to be used for one or medical purposes, that perform these purposes without being part of a hardware or medical device. In recent years software as a medical device has emerged as a class of devices that are used to collect, process, and analyze healthcare data to help identify and manage diseases.

With the strain that COVID-19 has placed on the medical system worldwide, SaMDs are seeing a dramatic upswing in both innovation and production; with health providers increasingly utilizing SaMDs to automate areas of patient care, such as blood glucose monitoring and pain management.

This enables patients living with chronic conditions to capture and share data themselves, becoming an active component in their healthcare plans. As the technology becomes more powerful, cheaper, and accessible SaMDs will allow healthcare professionals the data and scope to develop more in-depth, personalized treatment plans for their patients.

The Internet of Things Expansion

The logistical constraints of lockdown on both doctors and patients alike have necessitated innovations in remote care, such as virtual mental health care, and given rise to wearable medical devices and technologies. Devices that capture and transfer data via the Internet of Things (IoT): the giant system of interconnected internet devices. While the trend of remote care was already on the upswing throughout the 2010s, the COVID pandemic has increased this ten-fold, with 95% of physicians increasing their use of virtual technology since the outbreak.

This integration of IoT platforms within medical care is working to improve patient outcomes, lower costs and improve end-to-end efficiency. For medical device companies, this expansion has presented an opportunity to provide data distribution channels as a service, and by 2029 the Internet of Medical Things (IoMT) market is expected to grow by nearly 300 billion dollars.

Changing Business Models

Disruption of the status quo can happen at any time, with quantum shifts in the market causing total upheaval and uncertainty, rarely has this been more apparent than with COVID-19. Not only have companies had to change direction entirely, but for a lot of them, they are unlikely to turn back again. With the direct impact of the pandemic expected to persist for the next five years, MedTech companies are set to adopt one of a few outlined business model approaches to future-proof their organizations:

1. The Breakthrough Innovator: Companies that adopt this model develop premium, breakthrough products and services that come with a hefty price tag. Such innovative technology includes, but is not limited to, robotic-assisted surgery.
2. Disease Managers: Provide personalized solutions that help users manage chronic conditions. These solutions may come in the form of medication management and ordering apps, for example.
3. Lifestyle Managers: Companies adopting this model develop products that are aimed at maintaining overall health and encouraging preventative behaviours and lifestyle changes. Wearable devices such as Fitbit’s smartwatches and trackers may fall into this bracket.
4. Efficient Producers: These companies are the manufacturers or providers of high-volume low commodity products, meaning essential medical products such as PPE equipment and ventilators.

Conclusion

While COVID-19 has presented an unparalleled humanitarian crisis, it also presents an opportunity for reform in healthcare innovation and delivery. Ongoing advancements in medical technology and the growth of data capturing and information sharing via the Internet of Things will continually alter the way health care professionals monitor health and develop relationships with their patients.

At the same time, companies and the industry will be challenged to dramatically rethink and adapt their business operating models to meet the demands of an uncertain future. Many companies switching their focus to internal, domestic manufacturing, rather than relying on external suppliers. Despite recent setbacks and upheaval, however, there are opportunities aplenty for medical companies of all sizes and scope to grow and innovate.