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Inside the Latest Capability Advancement in Johnson & Johnson’s Orthopedics

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Overview

On January 9, 2017, Johnson & Johnson’s (JNJ) Medical Device division announced its Orthopedic Episode of Care Approach under the company’s latest CareAdvantage capabilities platform.

The offering is a data-driven approach that should help accelerate the value-based care models being implemented by JNJ. It will also help provide better quality care to the patients and reduce surgeon costs. The offering will be available in the US immediately and will be launched in phases in the rest of the world.

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Features and capabilities

JNJ’s Orthopedic Episode of Care approach includes various capabilities that aims to drive patient outcomes. It includes a cloud-based platform that helps care providers offer comprehensive care to the patients and a patient athlete program that helps with the preparation and recovery of patients undergoing orthopedic surgery.

Other capabilities include episode performance improvement, infection risk management, and hip fracture care. The offering also includes shared performance agreement option which will drive down implant costs.

Management view

According to Tim Schmid, Chief Strategic Customer Officer, J&J Medical Devices Companies, “Reducing costs, enhancing patient outcomes and increasing patient satisfaction are core” parts of the company’s “focus on helping health systems committed to delivering value-based care across a variety of therapeutic settings.”

Competitors with J&J in the Orthopedics space include Stryker (SYK), Smith & Nephew (SNN), and Zimmer Biomet Holdings (ZBH). Notably, investors interested in gaining exposure to J&J can invest in the Vanguard Value ETF (VTV), which has ~2.9% of its total holdings in JNJ.

Now let’s look at the latest product launch in JNJ’s Diabetes segment.

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