Saturday, August 24, 2013

Medtronic Is Changing Its Business. Will The System Let It?

Earlier this month, Forbes contributor David Shaywitz asked a necessary question: “Are Medical Product Companies Finally Serious About Business Model Evolution?” This was in response to medical-device giant Medtronic MDT -1.16%‘s (NYSE:MDT) friendly acquisition of Cardiocom, a patient-monitoring firm. CEO Omar Ishrak’s comments at last Thursday’s annual meeting suggest that the answer to Mr. Shaywitz’ question is “yes”. In his remarks, Mr. Ishrak noted that “the U.S. is wisely moving to a fee-per-value approach which incentivizes value over volume and outcomes over inputs.”

Read the entire article at Forbes' The Apothecary.

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