Summary
Both consumers and medical experts believe that if medical devices communicate with each other like consumer electronic products, cell phones, iPods, etc., there would be fewer medical error related deaths. In theory device interconnectivity is a great idea, but such capabilities require substantial funding. The research and development expenses industry wide would to accomplish these standards would be astronomical. Should hospitals be demanding these type of capabilities from the device manufacturers? At a time when hospitals are attempting to negotiate LOWER prices for their devices, they are highly unlikely to be wiling to fund such improvements.
Analysis
Unlike consumer electronic goods where the R&D expense is passed along to the consumer--who is happy to shell out hundreds or even thousands of dollars for such wonderful connectivity, the medical device marketplace is different. In the medical device industry costs are borne by insurers and other third party payers. These entities are less thrilled about spending their limited funds on such features as interconnectivity between devices. In the medical insurance world a device is only worth an increased price if there is an immediate cost savings associated with the device improvement.
In this case, cost savings would likely not be realized directly by the insurer or third party payer. Therefore, they are highly unlikely to increase the reimbursement for devices with these new capabilities. The question then remains who bears the cost of these unreimbursed improvements?
