How the Global Pandemic is Reshaping the Evolution of Healthcare
Content last updated, October 26, 2020.
As the healthcare
industry continues to focus on slowing the global spread of the coronavirus, it
is also assessing how the delivery of care will change over the long-term.
Existing practices and norms are changing - some for the short term - but
others will have far-reaching implications. With some regions already
experiencing a second wave of infections this fall , healthcare manufacturers,
their supply chain partners, and regulatory agencies must continue to
collaborate to build and deliver the supplies healthcare facilities need. In
parallel, they must also focus on realigning disrupted global supply chains –
with many re-examining their manufacturing and sourcing strategies for critical
equipment, evaluating potential M&A deals, and collaborating with partners
to improve their resilience to future crises.
Kevin Walsh, Vice President, HealthTech at Celestica shares his perspective on how the pandemic is impacting the healthcare industry.
The Power of Collaboration
It's impossible to
overstate how remarkable the healthcare industry's response to the pandemic has
been – on the front lines and beyond. OEMs have formed regional and global
alliances with strategic manufacturing and supply chain partners, including
some outside the healthcare industry, such as automakers. Some even made their
product designs and other IP public. For example, in late March, Medtronic shared the design specifications
of its Puritan Bennett™ 560 (PB560) ventilator with other manufacturers to
increase global production.
The spirit of co-operation extends beyond the manufacturing sector.
Researchers and scientists at companies like Roche and Johnson & Johnson,
as well as at universities worldwide, are developing new tests, treatments, and
a vaccine. Until a vaccine is developed and made widely available, the
healthcare industry’s massive coordinated response will continue.
For example, Next Generation Manufacturing Canada (NGen), the
organization behind Canada’s Advanced Manufacturing Supercluster, has allocated more than $21 million (CAN) to
support ramping up the production of medical equipment and supplies devices for
healthcare facilities throughout the country.
StarFish Medical Inc., a Canadian medical device company, is part of
this effort. StarFish turned to Celestica’s Newmarket, Canada facility to build
7,500 of its ventilators that have proven useful in challenging COVID-19 triage scenarios.
In fact, Celestica is working with a number of our customers to meet
the global demand for medical equipment and supplies. Other ongoing projects
include producing subassemblies for Medtronic's Puritan Bennett™ 980 (PB980)
ventilators, and printed circuit board assembly (PCBA) modules for AirBoss
Defense Group's (ADG) FlexAir™ Powered Air Purifying Respirators (FlexAir PAPR)
systems.
Lessons for the Future
The healthcare industry has become more focused than ever on
mitigating future risk. The lessons learned while helping the global community
navigate the pandemic are shaping both companies’ short and long term
strategies.
Anticipating Shortages
After the pandemic struck, manufacturers acted quickly to prioritize
the production of equipment and supplies healthcare facilities worldwide needed
to treat the rising numbers of COVID-19 patients. In the U.K. alone, the
Department for Health and Social Care (DHSC) in March delivered ventilator
blueprints to more than 60 manufacturers (including some outside the healthcare
industry) with a mandate to immediately begin producing 20,000
ventilators for the National Health Service (NHS).
No matter the specific manufacturer, many models of ventilators
designed for use in intensive care units (ICU) share common parts such as
pressure generators, circuit boards, sensors, filters, and valves.
Manufacturers prioritized the acquisition of these parts, creating a domino
effect along entire supply chains. Delivery schedules of raw materials were subsequently
shifted, which led to parts shortages and longer lead times.
The long-term lesson for all manufacturers is to be proactive in
identifying alternative sources of parts and raw materials before the next inevitable demand surge hits.
In-region manufacturing
There were too many stories of shipping delays for critical-care medical
devices and personal protective equipment (PPE) from one region of the world to
another. Consequently, governments increasingly see building inventory
stockpiles within their borders as a national security priority.
Healthcare manufacturers should, therefore, evaluate how they may be
able to implement on-shoring or near-shoring manufacturing strategies.
Embracing the "in region, for region" model or moving manufacturing
operations to best-cost geographies may reduce costs and speed delivery to
market without sacrificing product quality. Additionally, OEMs that have
adopted just-in-time manufacturing should reassess whether they need to
de-emphasize that approach in favor of stockpiling parts for critical medical
equipment.
Never Sacrifice Quality for
Speed
As the global demand for medical equipment and supplies stabilizes,
priority must be given to further testing and refining these products. This is
critical to instilling confidence in both providers and patients that the products
will deliver the highest levels of quality, precision, and performance.
Therefore, aligning with partners that have expertise in navigating these
processes and utilizing FDA-registered and ISO 13485 certified manufacturing
sites will help speed the production and delivery of critical equipment and
supplies.
Portfolio Evaluation
We also expect a re-reshaping of the M&A landscape. While some
manufacturing companies have been overwhelmed with orders, others that build
products for non-COVID-19 related procedures such as elective and trauma
surgeries had to slow or halt production. As companies evaluate potential
deals, diversifying their product portfolios will be a crucial consideration.
Remote Monitoring &
Telemedicine
Years from now, we will look back on the 2020 pandemic as a driver
of the development of technologies that enable patients and providers to focus
on prevention. Early detection and accurate diagnosis of an illness or
abnormality are critical to any improving treatment outcomes. That’s why many
of our customers are focusing on innovation in the field of telemedicine,
developing the technologies that will enable doctors to be more proactive in
monitoring and diagnosing their patients' conditions remotely.
The
world has not faced a crisis as far-reaching as this coronavirus pandemic in
more than a century. The healthcare industry’s coordinated response has played
a critical role in reducing infection rates and re-opening the world after
months of isolation and lockdowns. OEMs and their manufacturing and supply
chain partners are applying the lessons learned to ensure that healthcare
facilities remain well-equipped, re-evaluate their long-term business
strategies and processes, and realize technology’s promise of creating a
healthier, safer world.
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