Event Archive- 2015
2014 Archived Events
Bio on the Vine
It was an overcast evening but the stars were out in full force at our kick off social event of the year – Bio on the Vine at the Space Needle. Our largest Bio on the Vine to date, we had 160 people register to attend! With wine flowing from Washington’s original winery, Chateau Ste. Michelle, and a 360-degree view of Seattle, the event was buzzing and alive with conversation and networking! If you missed out, we’re planning on a repeat at the Needle next year! Our next social event will be April 9 at The District Lounge at the Hotel Decca. Please join me in thanking our sponsors: Wells Fargo Insurance Services, MPI Research, & ZymoGenetics.
Succeeding in Today's Medical Device Environment | Recap of panel discussion, held February 26, 2015 | By Carly Holstein
WBBA hosted a timely and rich panel discussion entitled “Succeeding in Today’s Medical Device Environment.” Moderated by Joe Hage, leader of the Medical Devices Group on LinkedIn, the panel engaged in thoughtful, and at times oppositional, discussion about the realities of operating in the medical device industry amidst current political and financial challenges. The expert panelists included Tom Clement (CEO of Aqueduct Critical Care, Inc.), Sean MacLeod (President of Stratos Product Development), Val Veitengruber (VP of Clinical Economics, Policy & Reimbursement at FUJIFILM SonoSite), and Joe Gifford (CEO of the Providence Swedish Health Alliance).
The discussion began with a heavy dose of criticism of the medical device tax enacted by the Affordable Care Act (ACA), also known as “Obamacare,” in 2012. Clement, MacLeod, and Veitengruber shared frustration regarding the tax and its impact on medical device manufacturers. Citing examples of decreased profit margins, increased cuts to workforce and R&D, and decreased investor activity, Veitengruber stated that the “medical device tax has been very impactful in our industry and not in a good way.” Hage added a compelling example from a member of his medical device group, who explained that, for his 50-person company, the medical device tax is equivalent to hiring 7 people who don’t do anything. Veitengruber is actively involved in lobbying efforts in Washington D.C., where medical device supporters are gaining bipartisan support to repeal the medical device tax. However, without a proposed solution for replacing the associated $29B tax revenue in the federal budget, the bill to repeal the tax is not likely to garner widespread Democratic support or a signature from President Obama.
Gifford turned the tables on this discussion, highlighting the benefits of the ACA and the improvements in cost and quality of care that hospitals have realized because of it. While Veitengruber criticized the ACA for not generating increased usage of imaging services—as might be expected for the increase in the number of insured Americans that has resulted from the ACA—Gifford clearly yet playfully pointed out that “we (hospitals) are trying to use your (imaging) services less,” not more. This excellent and honest discussion among the panelists underscored the obvious tension in this industry between device developers and healthcare systems and payers. Despite this current tension, Gifford highlighted the opportunity for technologists to embrace healthcare innovation and ultimately be the ones who truly fix the healthcare system. MacLeod agreed with this standpoint, adding that healthcare must shift to a “wellness management system,” and that Stratos and many of its clients are already working toward this goal.
Bringing the discussion to a more a local focus, the panel also talked about the impact of the WA state R&D tax credit that was recently repealed after 20 years of serving as a strong incentive for high-tech companies to set up shop in this state. Veitengruber stated that this repeal majorly affects SonoSite, which manufactures its products locally in Bothell, WA. Patti Tenney, Senior Director of Public Affairs at WBBA, described her organization’s efforts to work with state legislators and the governor to reinstate the incentive. To this end, House Bill 1769 has been proposed to reenact the R&D tax credit. Tenney and the WBBA highly encourage all players in the industry to contact state legislators and share their stories of the impact of this tax credit on their businesses.
The discussion ended with a recap of the superb array of resources available to medical device companies in this region. Clement pointed out that the University of Washington serves as a great research foundation, explaining that the technology for his company was exclusively licensed from UW through CoMotion (formerly C4C). Clement also mentioned that Aqueduct Critical Care benefited tremendously from a seed grant from the Life Sciences Discovery Fund (LSDF), which funded the development of their initial prototype. The panel also pointed out other resources, such as the Washington Research Foundation (WRF) and local angel investor groups, especially WINGS, which is specifically focused on medical technology. MacLeod also highlighted the importance of the Venture Investing & Partnering (VIP) forums hosted by WBBA, which bring national investors to Seattle to increase the visibility of our companies, hopefully mitigating the “out of sight, out of mind” problem that local companies often face.
Overall, the panel served as a great opportunity to learn from the insights of local medical device experts. While the medical device and healthcare industries are complex—and the intersection of them even more challenging—the panelists all echoed the same enthusiasm for improving health that unites us all in this field and propels us forward.