Transforming Diabetes Care into Value-Based Care Delivery


Part 1 of a three-part series about Medtronic and Diabeter, which Medtronic acquired in April 2015 as part of our vision to transform diabetes care so patients have greater freedom and better health.

Diabetes represents one of the biggest challenges to the healthcare system given its exponential growth, the cost to manage the disease and its impact on people’s lives.

A movement is underway to transform the healthcare system by shifting the focus from volume to value. So-called value-based healthcare — reimbursement on the basis of patient outcomes rather than volume of interventions or treatments — should allow a shift in spending from acute interventions when problems arise, to improving and innovating around the management of chronic diseases like diabetes.

Medtronic is contributing to this transformation by broadening our traditional product-focused business model to a holistic solution model that systematically improves value. Medtronic is focusing both on technology innovation and on developing and nurturing holistic solutions to enable and deliver better diabetes care.

In April 2015, we acquired Diabeter, a chain of innovative, independent Netherlands-based diabetes clinics and research centers dedicated to providing comprehensive and individualized care for children and young adults with diabetes. Our Diabeter acquisition marks our first entry into an integrated diabetes care model and demonstrates our desire to expand our role from selling medical devices to providing and enabling differentiated outcomes.

Established in 2006, Diabeter’s patient population has consistently grown, and today Diabeter has more than 1,800 patients in five different locations. In the Netherlands, Diabeter has been a pioneer in value-based diabetes care, and is an early adopter of technologies that drive positive outcomes. Diabeter offers a novel care model — one that is focused on diabetes patients, e-health solutions, and a unique patient experience. In addition, Diabeter maintains its independence in clinical decision-making, therapy, and brand choice of medical technology, utilizing proven processes and principles to ensure these decisions remain at all times in the hands of physicians.

As a result, the Diabeter patient population has exemplary clinical outcomes that also resulted in lowering costs. Diabeter is also paid by the Dutch health insurance companies based on an annual bundled price, which is a key tenet of a value-based care delivery model.

Now we are coupling technology innovation with big data and analytics that support an integrated, multi-disciplinary care delivery model, enabling us to deliver comprehensive solutions to address the chronic nature of diabetes and to fill the gap between medical visits. The goal of such solutions will be to improve outcomes and reduce costs to the healthcare system. We believe Diabeter’s value-based approach can be applied to patients with diabetes across the globe, and we are excited to make that happen.

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