MedTech CEOs Discuss Cyber Threats, Cost Pressures

Boston medical device executives shared insights on cost pressures, cyber threats, and market challenges during last week’s AdvaMed conference in Boston. The gathering featured keynote speeches and panel discussions with leaders from Medtronic, Stryker, Boston Scientific, and other firms, highlighting strategies for managing turbulent times.

Rising Healthcare Costs and Outpatient Shift

Amid rising healthcare expenses, medical device companies are adapting to procedures moving to outpatient facilities, such as ambulatory surgery centers. Boston Scientific CEO Mike Mahoney discussed the evidence required for expanding heart procedures to these lower-cost settings. He noted that cardiology is early in this transition, with pacemaker changeouts and interventional procedures already common, while pulsed field ablation approvals are expanding into outpatient centers due to high demand.

The shift requires proving referral safety, Mahoney said, emphasizing that safety and quality profiles must be exceptionally high outside hospital settings. Mass General Brigham’s CEO, Dr. Anne Klibanski, provided a hospital perspective on escalating costs, citing labor, supply chain, and pharmaceutical pressures.

Cybersecurity Challenges in MedTech

Medical device firms faced significant cyberattacks this year, with Stryker, Boston Scientific, and Medtronic all targeted. Stryker’s Chief Operating Officer and incoming CEO Spencer Stiles shared his experience managing a March 11 attack, describing the chaos of wiping phones clean and struggling to contact colleagues or loved ones. He emphasized prioritizing patient and employee safety, maintaining customer support, and communicating transparently during crises.

“During these times of complexity and turbulence, you have to define what’s most important to you,” Stiles said, noting the need to focus on safety and customer care. The attack required reestablishing communication systems and ensuring continued device support despite operational disruptions.

Leadership and Market Navigation

Medtronic CEO Geoff Martha emphasized simplicity in medical device design, arguing that adding time or complexity to procedures can break workflows. “It has to be simple. You can’t break the workflow,” Martha said, noting that even minor additions to procedures can strain already overburdened healthcare staff. He cited personal lessons from adding five minutes to an hour-long case as a reminder of the importance of efficiency. Insulet CEO Ashley McEvoy discussed leadership in tough markets, emphasizing the importance of creating conditions for innovation and staying focused on the mission. In conclusion, medical device executives must handle various challenges, including rising healthcare costs, cyber threats, and market uncertainty, while prioritizing simplicity, safety, and customer care.