Recycling Will Help Our Planet

Driving Innovation in MedTech: The Power of Circularity and Sustainable Product Design

Sustainability and circularity are fueling innovation in the MedTech industry, transforming product design and creating new value propositions. Explore circularity pilots in MedTech and the need for regulations to facilitate product take-back initiatives. Discover circular business models that align with hospital budgets and are shaping the future of MedTech and healthcare.


In brief

  • Roughly 90% of medical device waste primarily consists of single-use devices, emphasizing the necessity for innovation.
  • Purposeful design, collaborative ecosystems and alternative business models are driving circularity forward, not only for anthropological reasons, but also motivated by business cases.
  • To realize the full potential of circularity in MedTech, regulatory support and stakeholder education are essential for implementing new innovations.

Introduction: The potential of change in MedTech

The MedTech industry plays a vital role in advancing healthcare, but it is not immune to the environmental challenges our planet faces. As the demand for healthcare products and services continues to rise, so does the generation of waste and resource consumption. Five percent of the overall worldwide carbon emissions come from healthcare, primarily due to the manufacturing processes and supply chains of medical devices and technology companies. While this percentage may not appear excessive at first glance, it serves as a stark reminder of the environmental impact of an industry committed to preserving and enhancing human health. Moreover, it underscores the pressing need for sustainable practices within the healthcare sector. Approximately 90% of medical device waste comprises disposable, one-time-use products or components, which not only contribute significantly to waste generation, but also have a substantial carbon footprint as a result of their manufacturing processes. In essence, MedTech products, which are predominantly single-use disposable items, play a significant role in generating large amounts of non-recycled waste. Embracing circularity has become a guiding principle for MedTech companies to address these challenges and to build a sustainable future, but also to (re)define business models and operations.

Trends that are driving circularity in MedTech

Trend 1: Purposeful design

Designing products with end-of-life considerations is a strong driver for achieving circularity. MedTech companies are increasingly focusing on re-designing products to achieve easier assembly / disassembly, and recycling. By incorporating recyclable materials and modular designs, MedTech products can be given a new life through repurposing or recycling, minimizing the environmental impact and reducing the need for virgin resources.

Trend 2: Collaborative ecosystems

One of the key trends in advancing sustainability in MedTech is the emergence of collaborative ecosystems. By forging partnerships across the value chain, MedTech companies can optimize the use of resources, facilitate the recovery and recycling of materials, and reduce waste generation. Collaborative efforts enable the development of innovative solutions that benefit both the industry and the environment.

Trend 3: Alternative business models

The advancing digitalization has enabled an ongoing shift towards service-based offers and a diversification of business models in the MedTech industry. Besides focusing on physical products, companies are also offering services such as equipment leasing, maintenance, and upgrades. This shift not only enables MedTech companies to retain ownership and responsibility for the products throughout their lifecycle, but also encourages innovation and drives resource efficiency, allowing for the successful implementation of circular business models. Insights from a product’s usage also offer valuable feedback on product utilization and effectiveness, enabling seamless portfolio extensions with existing products.

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In addition to these trends, there are several other factors driving circularity in MedTech and presenting potential for competitive advantage. By reducing waste and costs and improving sustainability, circular companies can attract new customers and partners while being more profitable. With the rising costs of raw material, such as plastics and metals, and intensifying disruptions in global supply chains, relying on alternative material streams of recycled origin can give companies the competitive edge. The timing, which is crucial for such innovations, is also right. The willingness of the market to purchase refurbished products and the trust therein has increased significantly. At the same time, MedTech companies’ willingness to experiment has also increased and more sustainability-driven innovations are finding their way to the market.

The way forward: Actions that enable MedTech circularity

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Foster collaboration: Establishing partnerships across the value chain, including suppliers, healthcare providers, and waste management companies, is essential. Reaching the critical momentum across the industry is key to allowing players of all sizes to contribute effectively and to achieve the greatest value. Collaboration enables the exchange of expertise, promotes knowledge sharing, and is key to achieving the necessary harmonization for provider and customer buy-in/participation.

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Educate and engage stakeholders: Educating and engaging stakeholders, including healthcare professionals and patients, is vital to promote awareness and to garner support for circularity in MedTech. By highlighting the benefits of sustainable healthcare solutions, stakeholders can be empowered to make informed choices and to drive the demand for circular products and services. Industry pioneers have the opportunity to shape the market and obtain suitable returns on investments by providing premium categorized products. 

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Advocate for regulatory support: Collaboration with policymakers is essential to create an enabling regulatory environment for circularity in the MedTech industry. Close collaboration with regulators fosters optimal readiness for the future by aligning ongoing developments with prevailing long-term objectives driven by policy makers. Regulatory support is also pivotal for achieving the needed harmonization for extensive participation.

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Stay ahead of the EU policy: Regulations are always in flux and adapted over time. Especially with the increasing pressure on sustainability targets and reporting needs, this means that also the MedTech industry needs to stay up to date with various current and changing regulations. This includes laws applicable across industries such as the Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM), waste laws such as the electronics waste directive (WEEE) and the need for participation in local recycling schemes. Additionally, it also includes sustainability guidance of MedTech-specific laws and regulations such as the EU MDR, newly mentioning device reprocessing and exchange of components in devices, relevant for refurbishment activities. Not to be overlooked are also data protection laws in context of device collection and reuse.

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Circularity pioneers: Existing innovation in MedTech

Several circularity pilots in the MedTech industry are showcasing the potential for innovative solutions that not only address environmental concerns, but also foster resource efficiency and economic viability. Some MedTech companies have already taken steps to enhance their environmentally friendly offerings to customers while reducing their own carbon footprint.

 

1. Circularity by refurbishment: Lifetime extension for small- and large-scale instruments

 

High-value instruments such as MRI machines, ultrasound machines and other imaging equipment are increasingly retrofitted and refurbished to achieve significant lifetime expansions, ensuring availability of state-of-the-art instruments while reducing the demand for virgin materials. With the progressing of refurbishing technologies, new operational models with a shift in ownership emerge, such as product as a service approaches.

 

2. A case for circular design: Design of single-use items

 

Given the inherently stringent hygiene standards, it is still often most advisable to design certain advanced devices as single-use items. Otherwise, significant safety and economic compromises must be accepted. By incorporating modular components, materials that are easier to disassemble, and implementing take-back programs, MedTech companies can enhance the recyclability and resource efficiency of such devices. Furthermore, such initiatives contribute to reducing electronic waste and promoting a circular economy in the industry. These principles have been applied to the design of surgical staplers, bronchoscopes and respiratory equipment. In other cases, it is even possible to choose an alternative base material for a design. A leading manufacturer of surgical disposables, for example, has introduced a range of surgical drapes made from bio-based materials  instead of plastics. This change has reduced the overall environmental impact of their disposable products.

 

3. Saving costs through re-using costly materials: Catheters

 

Catheters are another area where circularity can drive innovation. Exploring the use of recyclable or reusable precious metals for catheter manufacturing can help reduce the environmental impact associated with single-use medical devices. By aligning material choices with circularity principles, MedTech companies can contribute to waste reduction and a more sustainable healthcare system.

 

It all comes down to rethinking product design and utilizing the power of design for circularity right from the beginning of the product life cycle. Only such rethinking allows for harnessing the full potential and a systemic change with a long-term vision. Successful pilot projects are an effective way of promoting this way of thinking and should encourage other players to follow suit. The emerging space allows players to position themselves with new innovations, accompanying intellectual property and new cross-industry collaborations.

 

Conclusion: Shaping a sustainable future for MedTech

The MedTech industry stands at the forefront of innovation, driven by the principles of sustainability, circularity, and product design. Through circularity pilots, MedTech companies are exploring new possibilities for waste reduction and resource efficiency. However, to fully realize the potential of circularity, supportive regulations are essential to facilitate product take-back initiatives and to reduce barriers in the market for refurbished goods. Additionally, circular business models offer cost-effective alternatives that align with limited hospital budgets, contributing to a more sustainable and resilient healthcare system. Altogether, MedTech companies that choose to adopt circular product designs can make a real difference in the world while also maintaining profitable operations. This is a powerful motivator for many companies in healthcare, an industry more purpose-driven than many others.

Summary

Sustainability and circularity are acting as drivers for innovation in the MedTech industry, revolutionizing product design and unlocking new value propositions. We explore circularity pilots in MedTech and emphasize the importance of regulations to facilitate product take-back initiatives. Additionally, we showcase circular business models to meet the budget constraints of healthcare facilities.

Acknowledgments

We would like to thank Nino Nikolovski, Ann-Christin Kerl and Clémentine Bittar for their valuable contributions to this article.

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