The orthopedic community has seen its share of turmoil over the last ten years, ranging from Chris Christie’s deferred prosecutions, industry consolidation, the decline of physician-owned practices, rising payor influence and structural realignment from the Affordable Care Act.
But 2018 was practically a year of tranquility.
Readers of Orthopedics This Week, according to Google Analytics, clicked their way to stories in 2018 which focused on stability. Stability in the industry. Stability in technology and science, and reflections on some great surgeons.
So here we bring you the top stories of 2018 as chosen by you, our readers.
The Industry
The top industry story of 2018 encapsulated technical innovation, entrepreneurial inspiration and the magical convergence of medicine and business.
K2M Acquired by Stryker
At the end of August, K2M, Inc. agreed to be acquired by Stryker Corporation for $1.4 billion. K2M, which had become a leader in the minimally invasive sector of the spinal implant market, had sales of $258 million the previous year.
K2M was founded by two surgeons and two brothers.
The two surgeons were John Kostuik, M.D., former President of North American Spine Society (NASS), Scoliosis Research Society, (SRS) and Chief of Orthopedics at Johns Hopkins and Tom Errico, M.D. At age 69, he told Errico, one of his former fellows, “Tom, I’m looking for something to do.” Errico said, “Maybe we should start a company.”
So, they called their friend, Eric Major. Major had been the CEO of American Osteomedix and sales executive for Interpore Cross, Aesculap and Synthes Spine. Eric then called in his brother, Lane. Hence the name K2M (Kostuik and two Majors.)
The company’s first product was a top-loading spinal system featuring off-axis screw height adjustment and offering a complete array of screws, rod connectors, and hooks, coupled with easy-to-use instrumentation. The company revitalized the deformity sector of the spine market.
Tariff Threat
Threatening industry stability in 2018 was the April announcement by the Trump Administration of its intent to impose a 25% tariff on a large number of medical devices and drugs, including orthopedic products imported from China.
Making Chinese products more expensive in the U.S. sounds like a good deal for U.S. manufacturers, but Indiana, home of Vice President Pence, is the orthopedic manufacturing capital of the world. If the Chinese retaliated, U.S. orthopedic manufacturers would be particularly vulnerable.
By September, Healthcare ITNewsreported that orthopedic implants had been given an exemption from the tariffs. Perhaps it was Mike Pence keeping Indiana great.
