On June 28, Medtronic’s (MDT) Beacon heart failure management services became available in the United States. The company’s MCMS (Medtronic Care Management Services) offers these services, which combine the company’s CRT (cardiac resynchronization therapy) and ICD (implantable cardioverter defibrillator) devices’ data capabilities and the monitoring capabilities of MCMS. These services help with early detection of heart failure events. Heart failure cases in the United States are increasing fast. The aging population and lifestyle issues are expected to result in a ~46% increase in the heart failure patient population by 2030. Plus, the costs for the heart failure treatment are expected to double in that time.
Value proposition for customers
Medtronic’s services, such as Beacon management services, help provide end-to-end care management to patients at the risk of heart failure. This approach helps improve patient care, which helps improve outcomes and drive down costs. This kind of product model is paramount for a medical device company’s success in the healthcare market focused on value-based care. Medtronic is actively pursuing collaborations and other initiatives to provide services to patients along with diagnostics device capabilities. Another recent initiative in the same direction is Medtronic’s collaboration with WSO (the World Stroke Organization) to help increase stroke awareness through various initiatives.
Boston Scientific (BSX), Stryker (SYK), and St. Jude Medical (STJ) are some of the other major medical device companies in the United States that are actively pursuing initiatives and innovations to provide products and services, providing value to customers. Investors can invest in the iShares Russell 1000 Value ETF (IWD), which accounts for ~1.2% of its total holdings in Medtronic.
Next, let’s look at Medtronic’s latest dividend announcement.