If you can believe it, Obamacare is now five years old. It came in with a bang and much controversy, and many powerful people put in a lot of effort to shut it down (and of course, many still are). Well, it's managed to survive for five years so far. No matter what happens after the much-anticipated election, it's clear that Obamacare has irrevocably changed the health care industry in the US.
One thing in particular that has stood out to me is the amount of innovation that has happened. When Obamacare came in, there was endless talk from naysayers about how it would entirely crush medtech innovation in the US. The uproar was largely in relation to the much-maligned medical device excise tax.
But a new report by PwC indicates that innovation is far from dead in the US. In fact, the report talks about how more than 90 new health care companies have been created since 2010, with telehealth being the most notable area for new competitors.
Now, it's true that this doesn't represent traditional medtech innovation. This isn't medtech companies making minor improvements on current devices, which is purportedly harder in this new environment.
But I don't think this innovation can be discounted. Medical device companies can certainly get into many of these areas, including telehealth, and partnering with any of these new companies could be integral to their surviving and thriving in this new environment.
It's a cliché, but totally applicable here: One door is closing but another one is opening. And as long as medtech isn't too stubborn to take a look at door #2, they might just realize that there is plenty of growth to be had in the right places.
Interested in learning more? View our Spectrum Report on MedTech Growth Avenues: Where Should the Dollars Go?