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DePuy Synthes' President Set to Lead AdvaMed's Orthopaedic Priorities of Registries, Payments

AdvaMed announced its orthopaedic priorities and the leader of its initiatives.

The organization has named Juan-José Gonzalez, President, U.S. DePuy Synthes, to head its orthopaedic sector by assisting with coordination of the regulatory and reimbursement advocacy priorities that impact AdvaMed’s orthopaedic member companies.

AdvaMed identified its orthopaedic priorities as:
1. Working with stakeholders to design, develop and maintain an effective device registry in the U.S.
2. Ensuring that new payment methodologies capture the value of orthopaedic implants

Both priorities speak to the U.S.’s shift to value-based medicine and its connection of quality and cost measures. The importance of data for benchmarking has increased as hospitals face the demands of public and private payors to meet set outcome metrics. The pressure has trickled down from the hospital to device companies, which are expected to prove product quality and cost through data. Hip and knee replacement, $8 billion and $6.5 billion markets respectively, arguably face the greatest scrutiny in orthopaedics.

In 2016, the Centers for Medicare & Medicaid Services (CMS) required hospitals in 67 regions to participate in its Comprehensive Care for Joint Replacement (CJR) Model, a five-year program that compensates providers by episode of care, from the time of the hip or knee replacement through 90 days after discharge, rather than just for the surgery itself.

CJR is just one model in the emergence of bundled payments. The impact that bundled payments will have on implant pricing remains unknown. The pricing models have, however, driven device companies to launch services to help hospitals address the components of an episode of care. DePuy Synthes, Zimmer Biomet, Stryker, Smith & Nephew and Medtronic—the five largest orthopaedic companies by revenue—have introduced solution platforms for joint replacement customers. 

DePuy Synthes, Smith & Nephew, Stryker and Zimmer Biomet also support the American Joint Replacement Registry (AJRR). AdvaMed has representation on AJRR’s board.

The top five companies account for 61% of worldwide orthopaedic revenue and ~80% of joint replacement revenue, according to the ORTHOPAEDIC INDUSTRY ANNUAL REPORT. Gonzalez takes the lead of AdvaMed’s orthopaedic sector following representation most recently from Smith & Nephew, Biomet and Zimmer.