The future of surgical robotics is evolving rapidly, driven by technological innovation, shifting economic landscapes, and the expanding role of ambulatory surgical centers (ASCs). During a panel discussion at LSI USA ‘24, industry leaders explored how robotics companies can navigate market stratification, optimize business models, and drive the adoption of surgical robotics in diverse environments.

Bridging Clinical and Economic Gaps

The adoption of surgical robotics hinges on balancing clinical efficacy with economic feasibility. Greg Roche, CEO of Distalmotion, emphasized the dual challenges companies face when targeting outpatient settings:

“From a clinical perspective, you need ease of use, seamless integration, and a workflow that fits the specific site of care. Economically, lower reimbursements and limited space require an entirely different business model.”

Addressing these challenges means designing systems tailored to outpatient environments while maintaining high clinical standards—a complex balancing act determining market success.

Expanding into ASCs: A Growing Opportunity

With the rise of ASCs, companies are racing to adapt their offerings. Evelyn Tee, Partner at LSE LifeSciences Consultants, underscored the significant potential:

“About two-thirds of ASCs currently lack an orthopedic robot, presenting a prime opportunity for market expansion. Surgeons’ exposure to robots in inpatient settings increases their openness to similar technologies in ASCs—if you can make the economics work.”

The economic feasibility of robotics in ASCs remains a major hurdle, with capital costs, operational expenses, and limited reimbursement models complicating adoption.

The Rise of Platform Models and Open Architecture

Building an open, modular robotic system can be a game changer. Greg Roche highlighted Distalmotion’s strategic focus on open architecture:

“We can’t master everything—robotics, instrumentation, visualization, AI, and data integration. So, we built an open platform that allows surgeons to choose the tools that best fit their practice.”

This approach encourages collaboration with established medtech players while ensuring scalability and flexibility in system design.

Unlocking Competitive Advantages through Business Models

Scott Huennekens of Front Foot Ventures noted that economic viability goes beyond technology—it’s about creating a competitive business model:

“Look at how Intuitive built a technological and financial moat with its capital-leasing model. New players need to rethink financing, bundling, and even consignment strategies to make adoption more viable.”

Medtronic’s Michael Clouthier echoed this sentiment, describing how Medtronic’s modular robotic system, Hugo, was designed with adaptability in mind:

“The modular design allows us to adjust the system for different settings. We’re exploring ways to bundle surgical tools and robotic platforms to lower the cost barrier and fit different markets.”

Surgeon Perspectives: A Key to Adoption of Surgical Robotics

Despite technological advances, overcoming surgeons’ resistance remains critical. Evelyn Tee explained how robotics companies must address surgeons’ concerns about skill erosion, longer setup times, and added complexity:

“Some surgeons still perceive robotics as slowing down procedures or eroding their surgical skills. Addressing these concerns through clinical training and education is essential to winning over the next wave of adopters.”

Interestingly, younger surgeons emerging from residency programs are more comfortable with robotics, signaling a future demographic shift toward broader adoption.

Overcoming Regulatory and Data Privacy Barriers

Technological innovation often outpaces regulatory frameworks, making compliance and approval timelines challenging. Greg Roche highlighted the complexity:

“Connecting devices creates new cybersecurity and data privacy concerns. Regulatory bodies will need to adapt, or they risk slowing down innovation.”

Additionally, adopting cloud-based services like remote proctoring and telepresence can enable remote training and support, reducing the need for in-person specialists.

Looking Ahead: The Future of Surgical Robotics

The next five years will be pivotal for surgical robotics as companies navigate fragmented markets, regulatory complexity, and evolving business models. Scott Huennekens predicted that intense competition from newer market entrants like Medtronic and Johnson & Johnson will lower costs and drive innovation:

“Competition will force pricing adjustments and increase accessibility. We’re still in the early stages of democratizing surgery worldwide.”

Evelyn Tee concluded with a strategic perspective on robotics’ role in enhancing implant sales:

“Robotics isn’t just about selling systems—it’s about driving associated implant and consumable sales. Surgeons with access to a specific robot are more likely to choose related implants, making robotics a strategic investment for long-term market share.”

Conclusion: Adapting for Success

The full recording of the panel can be found in LSI’s resource hub at the link below:

• The Stratification of Surgical Robotics: The Right Equipment in the Right Place for the Right Patient

The surgical robotics market is at a critical juncture. Companies must build adaptable platforms, address clinical and economic challenges, and develop innovative business models to unlock the market’s full potential. As the industry evolves, the adoption of surgical robotics will depend on balancing technology, economics, and end-user adoption.