MedShift, Inc. (Charlotte, N.C.), is one of the largest and fastest growing new breed of business solution providers, driving growth and scale to medical device manufacturers, suppliers and individual practices. It designs, implements, and maintains innovative solutions that power insights, operations and sales across dermatology, plastic surgery, and medspa market segments. MedShift’s business is centered around four business lines, Specialty Device Subscription, Connected Device (IoT), Velocity Technology Suite (Enterprise Software as a Service), and the MedShift Store, an online marketplace featuring a range of complementary products that streamline the complex supply-and-demand landscape of device consumables and injectables. “We aim to enrich aesthetic medical device manufacturers, suppliers and practices with solutions that can transform their business operations and help them achieve their goals,” said Joe Gasque, MedShift’s CEO.
In the first of a 3-part article series, we will highlight Medshift’s Technology business line. MedShift’s technology solutions include an implementation of Connected Device (Internet of Things, or IoT), connecting medical equipment to the cloud for real-time utilization data, machine analytics, pay-per-procedure, and remote maintenance. The company’s Velocity Technology Suite is an enterprise platform that helps organizations grow more efficient by centralizing and streamlining back-office processes, such as order-to-cash, fulfillment, and other critical sales operations. This end-to-end, scalable solution can manage device utilization data, scheduling, payments, staff compensation, and more.
According to Sean Shapiro, MedShift’s Chief Commercial Officer, “Most of our focus is on the manufacturer and distributor. We work to modernize their businesses using a variety of technology solutions and other services. The Velocity Technology Suite is a centrally hosted, subscription-based delivery model that allows customers to connect to and use cloud-based apps over the Internet. The business optimizations that we provide to our customers eventually translate into a better experience for aesthetic practices, too.”
Velocity works to improve efficiencies in a supplier’s business model, said Mr. Gasque. “For example, if you have a very complex sales force with multiple layers — capital rep, consumable rep, junior rep, and commission structures — then you really want to dial that in as a fully automated process. Compared with other such systems, Velocity is more cost effective and faster. We specialize in medical aesthetics, making Velocity ideal for these types of problems.
It's a good fit for smaller manufacturers that are just getting started, expressed Mr. Shapiro. “They might default to running their businesses using Excel, QuickBooks, or a simple e-commerce website. But then they might not have a seamless process for fulfilling product orders, for example, or setting up new accounts. With some systems, it might take three days for the back office to set up a new account. By then the sales team has lost the opportunity, in the moment, to sell. Velocity can set up that new account in just three minutes.”
Manufacturers that partner with MedShift say Velocity enables their businesses to grow, he continued. “We recognize the problems that aesthetic companies face, especially as they scale quickly. They could go to Oracle or SAP for answers, but those are big companies that don’t understand the workflow and customer experience in medical aesthetics. Our total focus on the medical aesthetics industry makes us unique.”
MedShift innovatively employs network connectivity via Connected Device or IoT. IoT describes a network of physical objects that are embedded with sensors, software, and other technologies to connect and exchange real-time data over the Internet. “Aesthetic devices in the market today are innovative, creating ways to enhance beauty, lose weight, build muscle, and tighten skin,” said Mr. Gasque. “However, the aesthetic market is nascent with real-time reporting of devices. Not all devices send data to manufacturers about where they are, how many treatments are performed, or if they need a remote software upgrade, etc. Instead, they may have to ship replacement devices or send technicians to a practice, which interrupts the practice and patient care while increasing service costs for the manufacturer.”
While some companies have entered a more modern age, “Their devices only use Wi-Fi for network connectivity,” said Mr. Shapiro. “If you only use a cellular network and the signal goes down, you stop receiving data. The new way of doing things with connected devices is to use a combination of cellular and Wi-Fi. If Wi-Fi goes down and a tower isn’t connecting, our solution switches to another tower and can work with international carriers in 140 countries. In the end, we can maintain fidelity of data that is much higher.”
MedShift implements its real-time reporting feature in one of two ways, he added. “One is an integrated circuit board we install in the machine, which sends data to the cloud. The other form factor is a power cord that is proprietary to MedShift. It looks like any other power cord but can read a device’s power signatures, which tells you where it is, when it’s on, when it’s off, which handpiece is being used, what filters are on, how many joules are being emitted, and other utilization data. We can build a pay-per-click model into a device, which auto-generates a payment process for procedures being performed.”
Armed with the cloud data, manufacturers can identify an underutilized system within a practice. “A company can quickly get its practice management team to help that practice become more successful with the device,” Mr. Shapiro stated. “And if they see a practice that is very successful, they can send the team to determine if the practice may need a second system. It’s a sales opportunity. Device utilization data can assist manufacturers by pinpointing geographies where they have little penetration of their products and use that knowledge as a commercial strategy.”
Finally, this power cord technology can identify the use of gray market consumables or off-market handpieces. “Using off-label products can hurt a manufacturer’s business and may compromise safety,” expressed Mr. Gasque. “We can validate consumables by cross referencing serial numbers and by the power signature during the use of the consumable. It’s one of the distinctive features of MedShift’s connected device offering. Keep in mind, device connectivity is nothing new. It’s been around for a long time in the medical field, including in aesthetics. What differentiates MedShift is that our power cord and circuit board allow connectivity 24/7.”
