How Data-Driven Business Models Are Transforming Medtech
The healthcare industry is undergoing a seismic shift driven by data-driven business models. This was the central theme of the panel discussion titled “Data-Driven Business Models for Medical Device Innovators: Future or Pipe Dream?” at LSI Europe ’23, moderated by Simon Turner of Sofinnova Partners.
Panelists included CEOs from pioneering medtech startups: Hamed Hanafi (NovaResp Technologies), Michael Ebner (Hypervision Surgical), Gabriel Jones (Proprio), and Claude Cohen-Bacrie (e-Scopics). Their insights revealed how data is reshaping medtech, enabling clinical improvements, new revenue models, and industry-wide transformation.
Building Data-Driven Business Models: Solving Real Clinical Problems
The panel began by addressing how data-driven business models can drive clinical improvements—a necessary first step toward building viable revenue streams. Hamed Hanafi shared how NovaResp Technologies enhances continuous positive airway pressure (CPAP) therapy for sleep apnea patients using AI-powered software:
“We predict and prevent apnea before it happens. If you know an apnea is coming, you can keep the airway open at lower pressures, making the machines more comfortable,” said Hanafi.
By using predictive AI models, NovaResp increases patient adherence while generating valuable clinical data. This helps secure Medicare reimbursements, creating a win-win-win for manufacturers, distributors, and patients.
Similarly, Michael Ebner described Hypervision Surgical’s work in hyperspectral imaging, which enhances surgeons’ ability to differentiate tissue types during procedures:
“We provide a superhuman level of vision using hyperspectral imaging to characterize tissues. It’s about actionability—giving surgeons real-time insights they’ve never had before,” Ebner explained.
Monetizing Data: From Clinical Insights to Revenue Models
Building on clinical improvements, the panelists discussed turning clinical data into revenue-generating products. Gabriel Jones of Proprio outlined how their surgical navigation platform transforms real-time 3D imaging into valuable datasets:
“We collect over 250GB of data during surgery, including navigation, imaging, and implant usage. That becomes a longitudinal dataset valuable not only to clinicians but also to implant companies and insurers.”
Proprio’s strategy involves digitizing traditionally analog products, enabling new business models where third-party partners license or subscribe to Proprio’s data insights. This approach transforms clinical outcomes into actionable insights for insurers, medical device companies, and even hospital billing systems.
Data-Driven Ecosystems: Expanding Beyond Core Products
Looking beyond immediate business models, the panel discussed the potential for broader data ecosystems. Claude Cohen-Bacrie explained how e-Scopics licenses its ultrasound technology to device manufacturers while storing imaging data for future AI model development:
“We’ve created a software platform that democratizes ultrasound. With every scan, data is stored in the cloud, enabling future product enhancements through retrospective data analysis.”
This approach allows e-Scopics to unlock new applications, from personalized patient monitoring to automated diagnosis. It also creates an ongoing revenue stream through licensing and service subscriptions.
Key Challenges: Data Ownership, Integration, and Standardization
Despite the potential, panelists agreed on significant challenges ahead. According to Michael Ebner, regulatory complexity and fragmented data ecosystems remain hurdles:
“The ecosystem for AI-based technology in radiology is still evolving. Only a handful of products have reimbursement codes. For startups, integrating into this ecosystem while protecting data ownership is critical.”
Jones echoed this sentiment, highlighting hospitals’ limited data utilization:
“Hospitals collect enormous amounts of clinical data but often struggle to extract value from it. Helping them unlock that potential creates a mutually beneficial business model.”
Conclusion: The Future of Data-Driven Business Models in Medtech
The full recording of the panel can be found in LSI’s resource hub at the link below:
The panel concluded that data-driven business models in medtech are far from a pipe dream. They are rapidly becoming the industry standard, driven by innovative technologies, new revenue approaches, and a commitment to clinical improvement. As Simon Turner summarized:
“The actionability of data is key. It starts with solving a real clinical need, then building a data flywheel that fuels business models, product innovation, and even industry-wide transformation.”
The path forward involves scaling these models through better data standardization, stronger partnerships, and evolving regulatory frameworks. The companies represented at LSI Europe ’23 are already building this future—one data point at a time.
