Medical Technology: What Changing Venture Capital Investments Signal

blog_surgeryThe market for medical devices historically has been dominated by big-ticket “physician preference items” such as artificial joints, spinal implants, and cardiac pacemakers. Venture capital and private equity investors have been eager to fund new firms in this expanding and lucrative domain. Changes in physician payment and organization are reducing the demand for these cost-increasing innovations, however, and redirecting the flow of investment capital.

For the past decade we have been studying medical device innovation (startup firms) and adoption (hospital organizations), starting from different angles but arriving at similar conclusions. Josh is a venture capitalist affiliated with Sightline Partners and Split Rock Partners, with an investment focus on medical devices, instruments, and diagnostic tests. James is a university economist with a research focus on payment methods and how these influence the adoption of high-cost technologies. We decided to put our perspectives together and look at both ends of the innovation and adoption process.

By Josh Baltzell & James C. Robinson | Health Affairs Blog


About Peter Coffaro 436 Articles

A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

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