Originally Published MX November/December
2001
INFORMATION TECHNOLOGIES
Network-Enabled Products
Medical device
manufacturers can stay one step ahead of the competition by addressing today’s
most pressing need in healthcare: efficiency.
Fred Thiel
Hospitals
are continually on the lookout for solutions that will allow them to manage
and care for patients more efficiently. In these modern times, it quickly becomes
evident that a technological boost would make hospitals and other healthcare
organizations run more smoothly. This opens the door for medical device manufacturers
to begin searching for solutions that will enhance their product lines and meet
the needs of their customers.
In pursuing new technologies to streamline hospital operations, many medical
device manufacturers are considering developing products that can leverage the
power of a network. Before investing in such technologies, however, medtech
executives need to know exactly how they will increase efficiency, save money,
and improve the bottom line.
Among medical device manufacturers, networked devices have been viewed as merely
novelty items, in part because of the overwhelming media hype about how consumer
devices will lead the charge toward global interconnectivity. It’s not
uncommon to encounter stories about refrigerators that can automatically order
food, or MP3 audio players that can seek out new material based on the owner’s
musical tastes. Even a lowly gardening implement such as a hand trowel could
be equipped to send soil pH data to a wireless station, which could communicate
with a landscaping supply business for topsoil replenishment.
Still, medical device manufacturers may have the biggest opportunity to use
networked technologies for the most profound effects on the bottom line. Harbor
Research (San Francisco), a strategic consulting and research firm, predicts
that in 5 years, the number of embedded chips sold to support intelligent devices
could reach more than 9 billion units per year.1 Harbor Research
also determined that, in the $40 billion U.S. medical device industry in 1999,
$7.1 billion was spent on capital medical equipment. And as the U.S. medical
device industry grows to $57 billion by 2004, so will the market opportunity
for medical device manufacturers. In the near future, digital intelligence and
connectivity will be designed into almost every type of electronic device. Medical
device manufacturers are well positioned to take advantage of this trend toward
connectivity.
To grasp the full impact of a network-enabled medical device, however, product
developers need to look at what’s been there all along. The information
associated with a product is at least as valuable as the device itself. Current
generations of medical devices produce a range of information that includes
real-time patient diagnostics, current status of operation, location, part number,
purchase history, when it was installed, by whom, critical specifications, availability
of replacements and alternative devices, repair instructions, and so on. Medical
devices already contain all the necessary information embedded inside of them,
and this data will always be accessible throughout its life cycle.
But information is worthless unless it is also put into context or utilized
for a purpose. Therefore, the smart device must be connected to a network and
utilized to support value-added services, including remote diagnostics and repair.
These key components make up an innovative concept called device networking.
Advances in networking technologies and the Internet have opened the door for
this emerging concept, and medical device manufacturers should consider jumping
onboard. Considering that most medical offices and hospitals are already wired
for Ethernet—one of the most popular networking technologies—the infrastructure
is in place for manufacturers to add device networking capabilities to their
products.
Device networking gives medtech manufacturers an opportunity to provide hospitals
with products that will allow them to have real-time access to information in
order to improve efficiency, make intelligent decisions, enhance customer service,
and save time and money. It gives devices such as handheld blood analyzers,
IVD point-of-care devices, multiparameter patient monitors, ventilators,
and many other types of devices the power to share information over the network
or the Internet without the need for bulky, expensive personal computers.
Increased Efficiency
One of the key
advantages of network-enabling devices is the efficiency that hospitals gain
from having real-time access to information. Hospitals are starting to make
strides in electronic medical records and the ability to manage hospital administrative
procedures electronically. However, there are still a number of paper-based
systems in healthcare environments, leaving a lot of room for human error.
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| The UDS-10 external device server by Lantronix (Irvine, CA) allows device manufacturers to network-enable their products. |
By automating the
process of recording patient tests through device networking, members of the
medical staff can access electronic records of a test or other vital information
that was collected manually. With an electronic archive, healthcare professionals
have the ability to verify information before making critical patient-care decisions.
In addition to recording information electronically and minimizing mistakes
that can occur when healthcare professionals manually transcribe information,
device networking can speed the exchange of information between medical devices
and a healthcare provider’s laboratory or hospital information system.
This means that information from alternate sites or remote facilities and central
labs can be shared in real-time with the patient’s designated healthcare
professionals. This allows healthcare professionals to make decisions more quickly
because they have real-time access to accurate information.
The good news for medical device manufacturers is that the more they increase
efficiency for hospitals and improve their process for tracking and exchanging
information, the more opportunities they are going to have to sell products.
For example, the more that hospitals use an IVD point-of-care (POC) device,
the more they will need consumables such as test strips and test cartridges.
Developers of infusion pumps will be in the same boat; the more that their devices
are used, the more fluids, syringes, tubing, bags, and catheters will be needed
by the healthcare provider. The same opportunities exist for a number of medical
device manufacturers, including developers of multiparameter patient monitors
and ventilators.
In addition to opening up new opportunities for consumables—already a $33
billion market in 1999, according to Frost & Sullivan (Mountain View, CA)—device
networking will allow medical device manufacturers to put a price on something
that is very difficult to measure: efficiency.2 And, considering
that a manufacturer can typically add device networking capabilities to a product
for about $30, the return on investment outweighs the added cost for network-enabling
a device.
Improved Patient-Relationship Management
There are many
examples of how network-enabled medical devices can increase the overall quality
of patient care. Over the past few years, POC testing has been a prominent beneficiary
of this technological adoption. Devices such as glucose, hemoglobin, and coagulation
meters have enhanced their performance features by being networked.
For example, POC blood analysis systems with only serial connections were bound
to individual workstations, which took up valuable bench space that could be
used for other diagnostic devices. By placing such analyzers on the network,
multiple workstations were eliminated, thus freeing up space. Multiple analyzers
throughout the facility, and their testing results, can be remotely monitored,
managed, and integrated into the laboratory and hospital information systems.
This scenario can be repeated with countless types of medical devices such as
infusion pumps, multiparameter patient monitors, ventilators, cardiac output
monitors, and ultrasound equipment. The overall benefit to patients and providers
is that test results and other monitored health information are electronically
captured, networked, and made available to the appropriate healthcare providers
for assessment in real time.
Employee Utilization
For the most part,
medical devices are somewhat self-contained and can perform varying levels of
performance and maintenance diagnostics upon themselves. Because devices are
getting smarter, however, basic field-service repairs are far less common
than they used to be.
During a product’s life cycle a number of technological advances may take
place. In some cases, an otherwise outdated device could be revitalized simply
by making a minor software change. The challenge is to figure out how to upgrade
thousands of devices already installed and in various stages of use and age.
It is not an easy task, but it has been performed, or at least attempted, many
times in the past.
Network-enabled devices offer an advantage in this area too. Using the healthcare
provider’s network, software and embedded board-level upgrades can be installed
electronically together with service and training documents. The upgrade requires
minimal time, and the installations are electronically verified.
A similar example occurs when a single device has difficulties beyond the scope
of its self-diagnostics. The advanced intelligence within a networked device
could contact the manufacturer for assistance, enabling a technician to assess
the difficulty and administer appropriate corrective measures. An automated
e-mail would then be sent to notify the healthcare facility’s coordinator
of the action taken.
Such scenarios are real and demand frequent attention. Network enablement can
free field-support personnel to focus on improving customer service in other
ways.
An Asset Life-Cycle Approach
Medical device
firms understand the importance of gathering and analyzing device performance
data and other related product information. Field device performance and operation
data are both critical to understanding a product’s strongest and weakest
attributes. Product revisions and other ancillary offerings rely heavily on
a thorough analysis of a manufacturer’s installed base.
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|
Lantronix
also offers an embedded device server for network-enabling purposes.
|
Healthcare providers
are very cautious about adopting new technologies. There is a level of comfort
associated with device usage that reflects brand loyalty, ease of use, accuracy,
and how the device assists in improving the overall quality of care. When product
enhancements are being researched and developed, manufacturers are especially
sensitive to the markets they serve.
Even so, data pertaining to warranty information, usage habits, service records,
feature sets, and so on, can be difficult to attain. When they are captured,
they don’t always provide the validity needed.
When devices are networked, a complete and accurate service history can be compiled.
Such documentation is invaluable to product managers in assessing the overall
performance and functionality of the device. Strategic product road maps and
other marketing initiatives can be more readily adapted to customer needs and
uses when they are based upon a reliable and accurate source of operational
data.
This is not to suggest that device manufacturers can retrieve performance data
by accessing their products via any healthcare provider’s network. Regulations
related to the Health Insurance Portability and Accountability Act of 1996 (HIPAA)
have accentuated the need for healthcare providers to safeguard patient health
information. Secure systems that comply with HIPAA regulations are thus an integral
part of any device networking system.
Ready to Use
The proposition
of device networking may seem a vision of the future, a technology in
search of a problem, or a technology that is an all-or-nothing proposition with
limited impact on today’s business. However, a number of medical device
and equipment manufacturers have already begun to adopt such information technologies
in their products in order to create new business opportunities and add new
value for their end-users.
The technology is available today, allowing device networking to be incorporated
into both devices and systems. Commercially available products, including the
necessary hardware and software, are available in a variety of configurations
to meet the unique needs of manufacturers.
In the case of manufacturers looking to enhance existing products or an installed
base of products, modular solutions are available to quickly and cost-effectively
add networking capabilities. Such solutions generally attach to medical devices
through an existing interface, like an RS-232 serial connection, making the
information within the device accessible over a network, using technologies
like Ethernet.
In one example, a manufacturer of patient-monitoring devices adopted a networking
approach to simplify the installation and maintenance of its centralized monitoring
systems. Previous-generation systems relied on dedicated wiring, which limited
the distances between the patient-monitoring devices and the central monitoring
station. By attaching the patient-monitoring devices to the hospital’s
local-area network the distance limitation was overcome, enabling staff to access
patient data not only from the local monitoring station but from any point on
the hospital’s network.
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|
The
chip-level device server by Lantronix offers the latest-generation network-enabling
technology. |
In this case, the
manufacturer also found the direct network interface useful for maintenance
and service purposes. With appropriate security measures in place, Internet
connections can provide an alternative means of product support. By diagnosing
systems remotely in advance, service personnel can be prepared with
the right parts to finish the job in just one visit. Manufacturers can offer
such services as part of an annual service contract, or as part of a value-added
package for select customers.
Another manufacturer had similar device-networking requirements for its handheld
automated blood analyzer. The company required a means of electronically transferring
patient test data stored in the analyzer to information systems within the hospital,
either for archival purposes or for additional laboratory testing. Because the
device was portable, the company put a premium on obtaining a compact and inexpensive
device-networking solution.
In this case, the use of infrared links was rejected because of the cost of
dedicated cabling for the required receivers. A more efficient solution was
to piggyback onto the hospital’s existing Ethernet network using a commercial
off-the-shelf docking station. Within the docking station, the manufacturer’s
engineers used a small circuit board to bridge the device’s serial port
to the Ethernet network. With this technology, nurses and other medical personnel
can submit important patient test records from their station, without having
to print out or transcribe the information, thus maintaining the quality and
timeliness of the information.
Conclusion
A growing number
of networked devices are being developed by manufacturers and adopted by hospitals.
The proven ability of such products to increase efficiency and enhance patient
care should be more than enough reason for device manufacturers to stop considering
them as mere novelties.
For medical device manufacturers, device networking offers a true competitive
advantage that enables them to provide value-added services for their customers,
increase sales of new products, enhance the use of existing products, and create
more consumption of disposables. By adopting device-networking approaches sooner
rather than later, medtech executives can help to ensure that their companies
will remain in the black for a long time to come.
REFERENCES
1.
"Introducing a Strategic Study: Capitalizing on the Pervasive Internet,
Phase 1: A Comprehensive Analysis of the Device Demographics and Business Models
Driving Internet Device Networking," in Harbor Research Home Page
[on-line] (San Francisco: Harbor Research, 2001 [cited 26 October 2001]); available
via Internet: http://harborresearch.com/frameset.html.
2. U.S. Medical Product Market [equity research report] (Mountain View,
CA: Frost & Sullivan, 1999).
Fred Thiel is president and CEO of Lantronix (Irvine, CA), a provider of device-networking products that connect medical devices to networks.
Copyright ©2001 MX
