The Development Dilemma of the Medical Industry

In the last decade, significant progress has been made in the medical devices industry with the introduction of new technologies and design modifications. However, these devices come at a high cost, with a substantial acquisition cost and subsequent maintenance expenses, resulting in an overall increase in device ownership cost. Furthermore, some advanced medical devices require additional components, such as chips, printed circuit boards (PCBs), batteries, sensors, and other accessories, which need to be replaced periodically.

As an example, a 2020 article from the Academy of Managed Care Pharmacy reported that the average cost of an insulin pump in the United States ranges from USD 4,500 to USD 6,500 per device. Additionally, the yearly cost of accessories, including batteries and syringes, amounts to approximately USD 1,500, leading to a relatively high cost of ownership for patients. The limited adoption of medical devices in emerging countries can be attributed to the high cost of these devices and inadequate reimbursement policies.

Therefore, the medical devices industry has witnessed significant advancements in the past decade, but the high cost of these devices, including the associated components, and inadequate reimbursement policies, have limited their adoption in emerging countries.

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The Development Dilemma of the Medical Industry

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