Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 3211 In April, we saw repeal of the Sustainable Growth Rate formula for Medicare physician payments, eliminating the pressure point from repeated, temporary patches that caused Congress to look to the medtech industry for offsets. In June, the Asso- ciation held a payment policy conference in Arlington, Va., to address the key challenges and opportunities of the evolving coverage and reimbursement landscape. RESEARCH In 2015, AdvaMed-supported research highlighted both the strong value of medical technology and rising evidence requirements for coverage that can impede patient access. A Tufts study published in the February issue of Health Affairs showed it is 20-times harder to get a favorable Medicare coverage decision than 10 years ago. A study by Avalere found that leading health systems are able to adopt the latest medical advances and provide technology-intensive care without having higher Medicare spending than hospitals using less technology. Another study affirmed earlier findings that medtech has comprised a relatively small and constant share of national health expendi- tures – about six percent – for more than two decades, and that medtech prices have grown at just one-third the rate of prices in the overall economy since 1989, under- scoring how our intensely competi- tive industry helps keep prices low. Gail Boudreaux, CEO and founder of GKB Global Health, and former CEO of United Healthcare (at right), and Michael Farrell, CEO of ResMed, discuss the needs of hospital CEOs and payers at the AdvaMed 2015 conference in San Diego. DECREASED FATALITIES THE VALUE OF MEDICAL TECHNOLOGY Medical devices make up a small and stable part of national health spending Advanced medical devices and diagnostics allow people to live longer, healthier, and more productive lives Between 1989 and 2013... Medicare spending on high-tech hospitals is no higher than other hospitals Between 1980 and 2010... Spending on medical technology as a share of total national health expenditures has stayed steady at about 6%. Prices for medical devices have grown more slowly than the Medical Consumer Price Index or the overall Consumer Price Index. 0.9% 4.5% 2.7% MEDICAL DEVICE PRICES MEDICAL CONSUMER PRICE INDEX 10 % 8 % 6 % 4 % 2 % CONSUMER PRICE INDEX SOURCE: G. Donahoe, G. King. “Estimates of Medical Device Spending in the United States.” June 2015. 1989 2013 Medical advancements helped increase life expectancy by 5 years and reduce fatalities from heart disease, stroke and breast cancer by more than half over the past 30 years. Medical advancements yield health care savings by replacing more expensive procedures, reducing hospital stays and allowing people to return to work more quickly. 58% ADVANCED MEDICAL TECHNOLOGY HELPED REDUCE DURATION OF HOSPITAL STAYS BY SOURCE: National Center for Health Statistics. “Health, United States, 2012: With Special Feature on Emergency Care.” Hyattsville, MD. 2013. A 2015 study examining Medicare spending found that a higher percentage of hospitals with the highest levels of technology have spending rates below the national average. MEDICARE SPENDING BELOW NATIONAL AVERAGE SOURCE: Avalere Health. “The Impact of Medical Technology on Medicare Spending.” September 2015. OTHER HOSPITALS TOP TECHNOLOGY HOSPITALS 65% 56% 100 80 60 40 20 0 % OF HOSPITALS Patrick Conway, CMS’s deputy administrator for innovation & quality and chief medical officer, discusses the importance of patient access to innovation at AdvaMed’s Payment Policy Conference in Arlington, Va.