MEDICAL INNOVATION NEWS
From the CEO's Desk
"As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them." John F. Kennedy
As Thanksgiving is fast approaching, we have much to be grateful for: the successes of our startups as they devise new ways to improve patients' lives; our small, and yet highly nimble and effective staff; and our partners and generous donors who share our goals and aspirations to create advancements in healthcare that will greatly lower healthcare costs and increase our quality of life.
In this edition, we highlight our new partnership with Ethicon, a Johnson & Johnson company; the launch of MedicalCue's technology, which will drastically improve infant healthcare; and a Q&A with Will Wyman, our development associate, on the considerations and benefits of year-end giving.
We hope you enjoy this edition, and we wish you a happy and healthy Thanksgiving.
Ann Fyfe, President and Chief Executive Officer
"Support from world-class medtech leaders like Ethicon provides strong validation of our mission and approach. Together, we can make the entire industry stronger and more effective." – Ann Fyfe, President and CEO of the Fogarty Institute.
Fogarty Institute for Innovation Updates
Renee Ryan, Vice President, Venture Investments of Johnson & Johnson Innovation; and Mike Needels, COO of the Fogarty Institute; kicked off the first Ethicon/J&J meeting at the Institute.
Fogarty Institute Partners With Ethicon
Following on the heels of our partnership announcement with the FDA, we are thrilled to share that we have recently forged an agreement with Ethicon, a Johnson & Johnson company, to support and groom the next generation of medical device innovators. As part of the agreement, Ethicon will provide sponsorship for the Institute's educational programming, as well as leadership and mentorship to its resident medtech innovators.
Ethicon offers healthcare professionals solutions that address the key challenges of today's surgical procedures in order to optimize patient outcomes, and brings people together from around the world to create innovative solutions that advance surgery and improve lives every day.
"This exciting partnership with Ethicon is an important step towards advancing medical innovation," said Ann Fyfe, President and CEO of the Fogarty Institute. "Support from world-class medtech leaders like Ethicon provides strong validation of our mission and approach, and we greatly appreciate the expertise they will share with our innovators. Today, more than ever before, early-stage medtech companies are challenged to bring their products to market while facing a tough regulatory and funding environment. Our innovators will greatly benefit from the mentorship and expertise brought by the highly experienced professionals at Ethicon and Johnson & Johnson. We are looking forward to a long-term partnership."
The Fogarty Institute has supported the growth and vibrancy of the medtech industry since 2007, and this agreement is an extension of that commitment. We are looking forward to finalizing the 2016 programming curriculum for a long-term partnership that will help medical device entrepreneurs achieve critical development objectives that allow them to swiftly bring life-saving products to market and to patients.
MedicalCue is ready to launch its technology to guide medical teams during newborn resuscitation.
Saving Newborns' Lives: MedicalCue Ready to Launch its Technology
Founded by Dr. Pete Coelho and led by Peter David, MedicalCue has developed a bedside tablet computer system that guides medical teams during newborn resuscitation. Much like a GPS offering real-time traffic avoidance, the startup's technology provides dynamic, real-time reference information needed during the complex steps of newborn resuscitation. The information provided to the delivery room staff is indexed to the national standard of care as developed by the American Academy of Pediatrics' Neonatal Resuscitation Program.
To make resuscitation easier, MedicalCue's system supplies both visual and audio information to clinicians. By automating routine tasks, such as record keeping and time keeping, this novel system reduces the workload of nurses and doctors. And it has done so with great success: published data has shown that the startup's device helps raise the accuracy of care from approximately 55 percent to 95 percent.
MedicalCue is on a successful path to dramatically improve delivery room outcomes, considering that one in 10 babies globally need to be resuscitated at birth. And every second counts because we only have one "Golden Minute" of opportunity for a baby to start breathing properly or the infant is at risk of brain damage, or worse, loss of life.
MedicalCue's technology empowers clinicians to easily do the right thing, the right way, at the right time, generating strong customer interest: 80 percent of the hospitals that met with the startup are moving towards deploying its technology. The startup has been in discussions with El Camino Hospital, where it conducted clinical simulation studies and where the Fogarty Institute is located, to be the first facility to host a MedicalCue device in every neonatal room and bed.
Guest Q&A — Will Wyman, Fogarty Institute Fundraising Consultant
Year-end giving can offer advantageous tax savings, while contributing to the greater good.
Enjoy Tax Savings with Year-End Giving
With the holidays fast approaching, Will Wyman, Fogarty Institute Fundraising Consultant and Development Associate, offers insights on the advantages of year-end giving. Charitable donations are an excellent way to reduce your tax burden for the year, while allowing you to contribute a generous year-end gift to the greater good.
Will has more than 25 years of experience in fundraising, philanthropy, and endowment management serving a number of educational and environmental nonprofit organizations. Over the years, he has helped provide leadership on five capital campaigns for educational institutions, raising a cumulative total of over $50 million in support of a variety of innovative educational initiatives.
Many people think of gift-giving in terms of writing a check to a charity of choice, but there are more efficient and effective ways to give, especially when the stock market is strong with many stocks at all-time highs.
Q. Why should I consider year-end giving?
A. Year-end charitable giving can have a substantial impact on your tax situation. As you consider your charitable gifts between now and the end of the year, remember that gifts made now can generate income tax deductions that could help reduce your income tax bill. The amount you save depends on your tax rate and the portion of the gift you are allowed to deduct. Only gifts made by December 31st can help reduce the amount of taxes you will owe next April.
Q. What are the different giving options?
A. There are two year-end gift options that can maximize significant tax benefits which we recommend: gifts of appreciated securities and gifts from retirement plans.
- Gifts of Appreciated Securities
Smart gift planning combines charitable intent with cost-efficient planning techniques. Of critical importance is the kind of asset used to fund the gift. Usually, long-term appreciated property can generate the most favorable tax benefits. Reason: Gifts of such property provide a double benefit* — a charitable deduction, in most cases, for the full fair-market value of the property — plus avoidance of any potential capital-gain tax. The chart below illustrates the additional tax savings from a gift of appreciated assets.
Cash Appreciated Property A. Fair-Market Value $10,000 $10,000 B. Cost Basis $10,000 $4,000 C. Capital Gain 0 $6,000 D. Capital-Gain Tax (15%) 0 $900 E. Charitable Deduction $10,000 $10,000 F. Actual Tax Savings (28%) $2,800 $2,800 G. Total Tax Savings (D+F) $2,800 $3,700*For certain high-income taxpayers (singles above $200,000 and married above $250,000) additional savings may be realized by the avoidance of the 3.8% health care surtax on investment income.
- Gifts from Retirement Plans
Your retirement-plan benefits are very likely a significant portion of your net worth. And because of special tax considerations, they could make an excellent choice for funding a charitable gift. Retirement-plan benefits include assets held in individual retirement accounts (IRAs), 401(k) plans, profit-sharing plans, Keogh plans and 403(b) plans.
Q. What is the most desirable donation option and why?
A. Smart donors are always looking for ways to make their charitable dollars go farther and make a bigger impact on the causes they care about. Donating long-term appreciated securities directly to a deserving charitable organization, such as the Fogarty Institute, rather than selling the assets and then donating the cash proceeds, is one of the best and easiest ways for donors to give more. By taking advantage of the applicable tax incentives, donors can significantly increase the amount of funds available to them for charitable giving.
A charitable contribution of long-term appreciated securities — for example stocks, bonds and/or mutual funds that have realized significant appreciation over time — is one of the most tax-efficient ways to give. This method of giving has become increasingly popular in recent years because of two key advantages:
- Any long-term appreciated securities with unrealized gains (meaning they were purchased over a year ago, and have a current value greater than their original cost) may be donated to a public charity and a tax deduction taken for the full fair market value of the securities — up to 30 percent of the donor's adjusted gross income.
- Since the securities are donated rather than sold, capital gains taxes from selling the securities no longer apply. The more appreciation the securities have, the greater the tax savings will be.
If you are looking to maximize the power of your charitable contributions — to make a single asset make more of a difference to the Fogarty Institute or other charitable causes you care about — consider donating your long-term appreciated securities.
We would appreciate your consideration of a year-end gift to the Fogarty Institute to help further our mission of developing the next generation of medical innovators, improving patients lives and lowering healthcare costs. For more information on year-end giving strategies and how you can make a positive impact with a special gift to the Institute, please contact Will at Will_Wyman@fogartyinstitute.org or Peter Hero at Peter_Hero@fogartyinstitute.org.
Thoughts from the Board
by Thomas Krummel, MD, Chairman
Studies are forecasting a strong shortfall of physicians and medical specialists by 2025.
Multi-pronged Approach Is Needed to Bridge the Gap Between Physician Supply and Patient Demand
A recent survey of 5,024 physicians in 50 states found that 59 percent of doctors expect to maintain their practice, up from 53 percent last year. And that's some much-needed good news, since doctors are in high demand: the number of patients is growing much faster than doctors can be trained.
A study by the economic modeling and forecasting firm IHS Inc, forecasted that by 2025, demand for physicians will exceed supply by a range of 46,000 to 90,000; with a shortfall of between 28,000 and 63,700 of non-primary care physicians (surgeons and specialists).
This shortage needs to be addressed to ensure that patients receive the care they need and that the field of medicine continues to advance. Here are some ways to help build our industry:
- Attract and inspire bright, talented young people to the healthcare profession. There is some pessimism around the ways that healthcare is changing, but we need to continue to champion the message that there is no better privilege than helping someone in a moment of need. The younger generation brings a lot of technology savviness, which makes them uniquely qualified to tackle challenging health issues. If we keep attracting bright, creative young minds, new devices and technology will be developed and new medical solutions will be found.
- Embrace innovation. Innovation allows healthcare practitioners to offer cheaper, faster and more efficient care than ever before. Take 3D printing as an example. From 3D print software that creates pills for patients based on their medical and biological data, to organs, stems cells, bone and cartilage, and more, this technology has revolutionized healthcare. And we see similar advancements right here the Fogarty Institute. Let's continue to think outside the box and find new solutions to difficult health problems.
- Forge partnerships. There is strength in numbers, and if we want to move the needle on strengthening the physician base, the entire medical ecosystem needs to work together — from physicians, to government officials, to health tech companies, to VCs to donors. At the Fogarty Institute, we recently forged a partnership with the FDA to accelerate medical device innovation, and another partnership with Ethicon and Johnson & Johnson to support medtech startups. We need more of these types of partnerships. Medical innovation will continue to blaze new trails when we all work together and learn from each other for the greater good.
Dr. Fogarty Receives Red Cross Humanitarian Innovation Award; Honor Accepted by Institute's Protégé
Dr. Thomas Fogarty, one of the most widely recognized and honored cardiovascular surgeons, innovators and mentors, was recently awarded the 2015 Red Cross Silicon Valley Humanitarian Innovation Award for his impact and influence on the medical device industry. By founding the Fogarty Institute in 2007, he has led the way in inspiring healthcare pioneers to follow in his footsteps to develop devices and procedures that save lives and lower healthcare costs.
It was most fitting that Jessie Becker, CEO and founder of InPress Technologies, a Fogarty Institute company, received the award on behalf of Dr. Fogarty at the Red Cross of Silicon Valley's annual signature event that benefits local emergency preparedness, response and recovery efforts for the Bay Area's two million residents.
Jessie Becker, CEO and founder of InPress, accepted the Red Cross Humanitarian Award on behalf of Dr. Fogarty. Dr. Fogarty was instrumental in mentoring the startup through the challenges of bringing the technology to market. Photo courtesy of Cal Poly Business Magazine.
InPress is developing a simple device that is intended to quickly and effectively stop postpartum hemorrhage, the leading cause of maternal death globally, taking the life of one woman every four minutes.
The startup is one of the select companies that received close mentorship by Dr. Fogarty and the Institute's world-class partners, and represents what Dr. Fogarty envisioned when founding the Fogarty Institute: a quality, innovative company making a long-term impact on a critical health issue.
InPress recently completed clinical trials in Jakarta, Indonesia, which were 100 percent successful. In their study of 10 patients, hemorrhage was controlled within two minutes of placement of the InPress Device — which is significant given that current devices on the market not only take much longer — anywhere between 10 to 24 hours — but are also invasive and not always successful. In at least two of the clinical trial cases, the use of the InPress Device saved the life of the patient.
"I was honored to receive the Red Cross award on behalf of Dr. Fogarty," said Becker. "As our company makes strides toward fulfilling our vision of a similar significant, life-changing impact in the medical world, we are continually inspired by what he has accomplished."
In the News
FierceMedicalDevices: J&J's Ethicon partners with Fogarty Institute to back next-gen device innovation
Today's Medical Developments: Supporting medical technology innovators
Cal Poly Business Magazine: A Life-Saving Startup
Red Cross: 2015 Innovation Celebration Awards
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