“The Victorian Government has launched the Australian Medtech Manufacturers Alliance as a measure to keep Victoria at the forefront of medtech innovation”, Manufacturers Monthly reports. The Alliance will boost local medtech design, development, and manufacturing, and aims to solve procurement difficulties, all so the Australian healthcare system can benefit from locally-made medtech innovations. Although franchise business models aren’t so common in medtech, they also have the potential to help Australian medtech businesses grow fast. Franchisees can provide valuable resources and support to help medtech businesses expand their customer base and release innovative products that ultimately improve patient outcomes.
Develop and refine new products quickly
Franchising can help medtech developers win their place in the market before a competitor gets there first. As franchisees can provide capital and help secure funding, businesses can therefore access the financial resources needed to quickly develop or refine products to suit new markets — without the need for them to take on extra debt. Notably, it usually takes between three to seven years to develop and bring a medtech product to market (although it’s often possible for this to take even longer). So, speed is of the essence to beat out competitors with the same or similar ideas, and support from franchisees can make this possible.
Smaller businesses can compete with larger companies
Franchising also helps smaller medtech developers compete alongside larger, well-established companies. Take the cardiac medtech sector as an example. Due to the increase in cardiovascular issues (roughly 1.2 million Australians now have one or more heart conditions), experts predict the cardiac medtech sector to soon be a multi-billion dollar market. Companies like Medtronic and Boston Scientific currently dominate the industry, and each of them have notable innovations in the way of implantable defibrillators: small, battery-powered devices that treat patients with abnormal heart rhythms. An implantable defibrillator is placed within the chest to continuously monitor the heart, and it emits electric shocks as needed to regulate the heart rhythm.
Usually, medtech entrepreneurs, no matter how innovative, would find it difficult to compete with these bigger names. But, as the franchisor can pool resources with the franchisee, they can access a larger marketing budget than they’d usually have. Franchising therefore naturally grows brand recognition and reaches greater numbers of customers.
Help with regulatory compliance
Franchise business models can also help Australian medtech developers more easily comply with regulations. This is useful as Australian medtech developers often experience “notable delays in obtaining regulatory and reimbursement approvals, prolonged timeframes for market entry, and a lack of clear policy direction”, Tech Business News reports. With franchising, however, medtech businesses can benefit from the franchisee’s knowledge and past experience of industry regulations. Experienced franchisees who are well-established within the medtech industry are well-prepared to help medtech innovators meet the right standards.
Medtech franchises hold the potential to bridge the gap between innovation and improved patient outcomes. As franchisees can help medtech developers grow quickly, this business model can play a key role in healthcare innovation across Australia.