A number of hospital systems are establishing centers to help launch med-tech startups. The Cleveland Clinic is a pioneer in this area, with their Innovations Center. St Joseph Health has just launched the Innovation Institute, the heart of which is the Innovation Lab, which will incubate inventions that have come from the health system’s staff. And Geisinger Health System has just established xG Health Solutions, a company that will offer innovative service solutions developed at Geisinger to other health systems.

This is a trend that seems like it will grow in the coming years as the healthcare landscape in the U.S. changes. Much of the impetus behind the establishment of these innovation centers comes from recognizing that institutions will need to reduce costs if they are to remain viable. These leading organizations are also recognizing that the best ideas often come from their own personnel, working on the front lines of healthcare.

It would seem that device and medtech companies operating in the traditional for-profit sector are failing to adequately address the problems that the new healthcare environment is presenting. Hospitals are having to expand their missions, as containing costs and improving patient outcomes become bigger and bigger drivers.

Could it be that medical device design and development will be led by hospital groups and health systems? Will we see the most significant medical device innovations coming from them?