Minnesota is home to more than 600 medical technology companies, and virtually all of them began when someone decided to build a business around a new medical device.
Responsive Orthopedics is different. Started by veteran Twin Cities med-tech executive Doug Kohrs and two partners, Responsive Orthopedics began with the realization of a once-in-a-lifetime sales opportunity for reasonably priced medical devices, spurred by macroeconomic changes underway in the U.S. health care system.
Kohrs and his partners realized that the ongoing transition to a financial model known as “bundled payments” is rapidly creating a new market for low-cost, standardized medical devices. But the major device makers are unwilling to sell such models because the prices are too low, and venture capital firms are reluctant to fund start-ups without the promise of premium pricing someday.