Medtronic withdraws from knee orthopedics while venturing deeper into titanium spine implants

Medtronic is walking away from the knee replacement work being done by Responsive Orthopedics, a startup it acquired in 2016 that had aimed to disrupt the market with lower-cost artificial joints and a bundled payment model.

Minneapolis-based Responsive, described by Medtronic as a project being worked on by a small team, will be shut down following changes in a federal pay-for-performance program aimed at lowering the costs of hip and knee surgery.

Medicare’s Comprehensive Care for Joint Replacement payment model was first implemented in April 2016 by tying payments and penalties to 90-day patient recovery rates and was made mandatory for 1,800 hospitals spanning 67 population centers and a quarter of the country’s Medicare population. The agency estimated the program would save the government $343 million over five years.

Then in 2017, the Trump administration proposed reducing the number of mandatory population centers from 67 to 34—with the remaining 33 participating on a voluntary basis, along with all of the program’s rural and low-volume providers.

“Since the company acquired Responsive Orthopedics in 2016, federal guidelines for orthopedic joint replacement have shifted and implant pricing has become highly competitive, making it difficult for Medtronic to offer a disruptive solution,” Medtronic said in a statement.

The medtech giant began its withdrawal from the orthopedic implant market earlier this year “in response to shifting market dynamics and to focus the business for future growth,” the company said, while maintaining a commitment to value-based healthcare.

By Conor Hale | FierceMedTech

Image Credit: Medtronic


About Peter Coffaro 506 Articles
Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.

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