There are few industries growing as rapidly and consistently as the $220 billion global medical products market. Innovation is the life-blood of medical supply markets. The revenues for health care products and medical devices have consistently grown at an annual rate averaging over 10% in the last five years and there is no slow down in sight.
Healthcare visionary, Jerome H. Grossman, has noted that: “The forces for change in health care delivery have never been greater, with consumers shouldering more of the costs, the increasing reliance on Healthcare Savings Accounts, a determined focus on eliminating preventable medical errors, and the pressure to reduce costs and liability claims. ”
The healthcare delivery system is under tremendous pressure to commercialize simple solutions and medical breakthroughs that achieve these ends. Dr. Grossman added: “Given the fundamental forces for change in health care, we have reached a tipping point in medical services delivery. Rapid change is inevitable. It is an opportune time to seek and commercialize innovation from the medical profession and bring it to the gatekeepers in medical supply to solve the problems more rapid.”
Trends in Health Care Delivery Continue to Drive Growth
The rapid change sweeping through healthcare delivery set up the ideal environment to compliment individual driven innovation by the people performing jobs in the profession. Some major trends are:
· Individuals pay an increasingly bigger piece of healthcare expense
· Monitoring, regulating and reporting medical procedures results
· Better information available on treatment options and outcomes
· Individuals have increasing control and responsibility over treatment options
· New Self-directed Health Saving Accounts (like self-directed 401(k) plans) will enhance personal choice
Products and technologies that allow or enhance the following are growing rapidly and will gain momentum:
· Simpler Less invasive procedures · Better clinical outcomes · Less recovery time (in days not hours) · Treatment by less specialize professionals · Procedures performed in less specialized, lower-costs settings · Self treatment at home with monitoring by physician remotely · Overall Outcome and Cost Performance Driven
Eureka’s unique model unleashes the pent-up supply of innovation that is thriving in the profession and directs action products to the most appropriate medical supply channels and to healthcare providers where it is urgently needed and has always resulted in tremendous value creation for investors seeking high returns.