Over on Slashdot, there’s a post that caught my eye because it is so simplistic and so wrong. It’s something I have deep personal experience with, and while not the normal fare for WUWT I thought I’d share my detailed response for the benefit of others. First, here’s the Slashdot story:
An anonymous reader writes “The price of a pair of hearing aids in the U.S. ranges from $3,000 to $8,000. To the average American household, this is equivalent to 2-3 months of income! While the price itself seems exorbitant, what is even more grotesque is its continuous pace of growth: in the last decade the price of an average Behind the Ear hearing aid has more than doubled. To the present day, price points are not receding — even though most of its digital components have become increasingly commoditized. Is this a hearing aid price bubble?”
My response: [As noted in my WUWT About page] I wear two ITC/CIC hearing aids with DSP processors built in. Let me tell you a little bit about why they are so expensive. The largest supplier of hearing aids in the USA is Starkey in Minneapolis. I’ve been to the factory, and have experienced the process from start to finish courtesy of the president of the company.
1. Because hearing aids, especially BTE (behind the ear) and ITC/CIC (completely in the canal) types use a single cell 1.5 volt battery, which can drop as low as 1.3 volts through its useful operational life, the amplifier circuits must be of extremely low power consumption and low voltage. The only chip material that works well for this is germanium, which has a diode junction forward voltage of ~ 0.3V as opposed to the ubiquitous silicon used in consumer electronics which has an ~ 0.7V forward voltage. While germanium was once very common for transistors and some early integrated circuits, it has fallen out of favor in the microelectronics hearing aid world. There are only a handful of sources and companies now that work with germanium, thus the base price is higher due to this scarcity. You can’t just take an off the shelf silicon chip/transistor and put it in these aids. Each one is custom designed in germanium. [Added: power consumption is a big issue also, aids are expected to last a few days on a single battery, if most of the power is being used to overcome the forward diode voltage, it gets lost as heat instead of being applied to amplification use.]
2. The process of properly fitting a hearing aid is labor intensive. Custom ear molds must be created from latex impressions, and these need to be fitted for comfort. A small variance or burr can mean the difference between a good fitting mold and one that is painful to wear. Additionally, if the mold doesn’t maintain a seal to the inner ear properly the hearing aid will go into oscillatory feedback. Sometimes it takes 2 or 3 attempts to get the fitting right.
3. On the more expensive aids, labor is involved in doing a spectral hearing loss analysis of the user’s hearing problem, so that the aid doesn’t over-amplify in the wrong frequencies. Just throwing in a simple linear amplifier is destructive to the remaining hearing due to the sound pressure levels involved.
4. Construction of aids is done by hand by technicians, especially with the popular ITC (in the canal) aids. At the Starkey company, a technician is assigned to create the aid from the ear mold, fit the chips and microphone/receiver and battery compartment, and connect it all with 32 gauge wire and make sure it all fits in the ear mold. This can be a real challenge, because human ear canals aren’t often straight, but bend and change diameter. Imagine a room with a hundred technicians sitting at microscopes assembling these. Each is a custom job. There’s no mass production possible and thus none of the savings from it.
5. After the aid is created, then there’s the fitting. This process is also hands on. Getting the volume and the audio spectrum match right is a challenge, and audiologists have to have chip programming systems onsite to make such adjustments withing the limits of the aid. Sometimes aids are rejected because the user isn’t comfortable with the fitting, and then the aids go back to the factory for either a new ear mold, new electronics, or both.
6. There’s a lot of loss in the hearing aid business. Patients don’t often adapt well, especially older people. There may be two or three attempts at fitting before a success or rejection. Patients only pay when the fitting is successful. If it is not, the company eats the effort and the cost of labor and materials. Imagine making PC’s by hand, sending them out to users, and then having them come back to have different cases or motherboards or drives fitted two or three times, and software adjusted until the customer is happy with it. Imagine 4 out of 10 PC’s coming back permanently after trial and error with a customer.
7. Early hearing aids weren’t anything but simple amplifiers. Even until the mid 90’s there was very little spectral customization. Now many aids are getting features like frequency equalizers and DSP noise reductions that we take for granted in even the cheapest silicon based consumer electronics. Hence, price has increased with complexity, but there’s still the high cost of custom special chips, and lots of labor.
So for those who think mass production techniques used on iPods would work just fine for making a delicately balanced instrument that must fit in your ear, please think again. As a hearing aid user since 1969, do I think the price tag of the special hearing aids today are worth the price compared to the simple linear amplifiers I used to have to deal with? Absolutely.
For more on hearing loss, see the Starkey Hearing Foundation, which I support.
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Spouse’s tinnitus was one of several symptoms/effects of scurvy – which is what she had. I was reading the Patrick O’brian Aubrey-Maturin series at the time and put the symptoms together, suggested she return to her GP, tell him what it was and see his reaction.
“Of Course! Vitamin C Deficiency.”
The deficiency was an effect of a medication she was taking and adding more vitamin C into the mix cured the tinnitus and the other related complaints.
She had made the rounds of the usual specialists who had failed to diagnose scurvy – as one of them said, “We never see scurvy, as such.”
This is of course not to suggest that tinnitus is always a symptom of scurvy (Vitamin C deficiency) but it may give a few of you who have this problem something else to look into.
Kozlowski,
Drop me a line…:) Always looking to expand markets! But the reality is the $300 of parts in the hearing aid as the BOM cost translates to $600-$700 (after import duties) cost for the brand, who sells for maybe a 40 point gross margin to the audiologist – who charges a lot to cover the costs of office visits and fitting.
There really isn’t a huge amount of margin in it – because it’s an extremely time and labor intensive process to get them working right. Medical practitioners are not cheap per hour – you drop 18-20 hours of audiologist or doctor time into diagnosis and fitting and it’ll easily eat up $2000 right there.
I appreciate this topic. When I was 28 I lost most of the hearing in my left ear due to infection. First thing I noticed was the loss of stereoscopic direction finding. Like dropping the soap in the shower with your head lathered up and finding the bar without opening your eyes because your hearing allows you to pinpoint its location. I don’t have a hearing aid (can’t afford one).
Anyway about 8 weeks ago I had another stroke and lost a significant degree of my hearing in the remaining ear. I have been able to get along with work as long as I can sit in a quiet room with no radio or TV on, None at all as even at low levels I can’t hear my patients speak. My problem is I need HA’s but I can’t envision taking them out 20 times a day to listen to heart, lung, and bowel sounds. Anyone have a constructive idea? I don’t qualify for disability and have no money to retire on.
Again, Thank you Anthony for this topic. I am a regular reader but rarely comment because all the smart people here would make my comments seem silly. I am an electronic engineer but now practice medicine so this has been very interesting on two levels.
Hearing aids are controlled by a cartel. There is no place to obtain even a rudimentary hearing aid circuit drawing to see what’s really involved. There is virtually no detailed information available, frequency response, etc. You have to rely on the vendor; for him the sky is the limit. A lot can be done with dsps and their programming these days. Once you have a good algorithm (one time expense), it can be tweaked and tweaked and tweaked. If hearing aids were sold in a way that was competive, you would be surprised how quickly the price would decrease and the utility would increase. Competition is non-existant in the hearing aid field! It’s the difference between a Volkswagon and a Lexus. Both will get you where you’re going.
The OP works for Starkey. Of course he will justify the high cost. Every one of his arguments can be refuted, but everyone here seems to believe him. Competition and openness will bring prices down — way down.
Sorry Anthony, I agree with much that you say and read your blog every day, but you really CAN pay a lot less for DSP Hearing aids including CIC and RIC type – and you can adjust them yourself. I have done so. I have also had multiple poor/fraudulent service from hearing’professionals’. For example, you can chose from 6 channel units eg from http://www.audicus.com/ for $998/pr, 12 channel units from http://www.diyhearingaids.com/ for $1990/pr, 16 Channel Siemens Pure 701’s from http://www.thehearingcompany.com/ for $3295, or 32 channel units from http://www.americahears.com/ for $1798 & etc. All of these can be self-adjusted to match an audiogram, or to taste.They can also be matched up to all the latest bluetooth/telecoil etc technology. The people selling these are still no doubt making hefty profits. There really ARE multiple scams in the hearing aid supply/fit field. I am sure that the aids themselves ARE being made in China for a fraction of the sale price eg $100 per unit. The voltage differences and the germanium/silicon difference are probably just promotional stunts. This is not to say that people should purchase really cheap amplifying aidsvfrom ebay, hunting stores or elsewhere which might damage their hearing.
“Power consumption is an issue, if most of the battery power is used overcoming forward breakdown voltage it gets lost as heat. ”
Not with FET’s. They can operate on very low voltage and low power. All DSP chips are MOS, from day 1. First NMOS in the 70’s and now some CMOS. Power and density. Y’all can’t make that out of Germanium. So it remains a red herring. ‘Forward voltage’ refers to the drop across a P-N junction (diode) which doesn’t apply to MOS. Some DSP ‘cores’ now run at 0.9 volts. Faster and lower power. In the last 20 years, possible to combine both analog amplifiers and digital signal processing on the same chip.
Germanium is nonsense.
Starkey doesn’t really overcharge, given the engineering they put in. (they have or had an R&D faciliy in Colorado Springs) but I question whether they really need that much engineering.
As for rechargeable batteries – been using them for years in many applications. Growth of microfibers was a problem with Ni-Cd’s. NiMH cured that. Lithium made it even better. Pacemakers already use primary (non-rechargeable) lithiums. Did some work for CardiacPacemaker in MN a long time ago. HA’s could use inductive coupling, charge overnight in a small dual ‘bucket’ on the nightstand. Single cell lithiums (various types) are quite reliable.
As for tinnitus, have had it for years, many possible causes, no real cures. Sometimes tones, sometimes a whooshing. Comes and goes, fatigue seems to make it worse. You might think there would be more ongoing research, my ENT doc says not really.
Don’t forget that Obamacare imposed a 10% tax on medical devices. This tax, perhaps the most bizarre, regressive, invidious, and anti-business tax n the entire world, is already driving thousands of jobs, even entire companies, overseas, as well moving the entire medical manufacturing processes to China, where they will be lost to us forever. Manufacturers must lower labor costs to afford the tax.
My CI implanted sister (who was also an RN before raising a family, and now is interested in medicine again) informs me that there are a number of GPs and other medical professionals sans hearing; all is not lost, there are workarounds e.g. the ‘digital’ stethoscopes such as these models which can be used with full-sized headphones rather than just earphones it would appear:
http://www.digital-stethoscope.com/eng/sub02/sub02_01.htm
http://www.amazon.com/DongJin-i-Scope-Pocket-Electronic-Stethoscope/dp/B000X2IOL2
Also, there is product out there what works with a laptop PC to display the ‘waveforms’ from internal body processes … A year ago I wrote a short audio processing application in LabVIEW that shifted _up_ the low-frequency spectrum output from an electronic stethoscope sensor head (in the range of 50 some Hz) into the a higher frequency range of ‘normal’ human hearing (which becomes operative somewhere over 100 to 150 Hz) and into the range frequencies (say 250 to 300 Hz) that is better processed by hearing aids (based on what frequency sound range they are listed in the specs as being able to ‘handle’ and amplify).
There are forums where these sorts of issues are discussed, usually amongst the CI (Cochlear Implant) crowd where electronic interface to a Stethoscope is mandatory. Below is one link that touches on the interfacing of stethoscopes and CIs:
http://www.audiologyonline.com/askexpert/display_question.asp?question_id=548
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Wayne,
It’s not a cartel… There are roughly a dozen suppliers of DSPs used in hearing aids. Most are assembled as a dedicated, custom-designed hybrid chip using a customized DSP core (RAM, ROM, auxiliary processors as needed), firmware, ASIC for glue logic/memories and analog front-end. It’s not cheap to develop something small enough to fit in a hearing aid, yet process at a low power what is needed. We’re talking adaptive filters, variable compression/expansion, noise cancellation, auto-switch for telecoil use, and so on.
Now run all that off a 1.4V battery with 60-70 mA-hr rating – that’s less than 0.1 Watt-hour, so for 48 hours of duration – you better optimize for almost no current consumption.
It’s not a simple “op amp with gain” if you’re talking anything digital – and the new digital units offer significant improvements in intelligibility over the older fixed-gain units. It turns out that intelligibility is a function not only of frequency but amplitude as well, and having your multi-band filters adjust gain and Q based upon overall signal level can help a person understand what is said. The simple device you’re talking about is a pair of tin-cans with strings compared to the 24/96 kHz streaming solutions that modern DSP-based hearing aids provide.
So, if you’re comfortable stitching a DSP core, an EEPROM, a 14 bit CODEC, some analog front-end, and designing an ASIC – plus writing your own firmware – the circuit’s quite simple. Of course, the circuit in a CD player or cell phone is also quite simple, but most people aren’t capable of actually making an actual device…
Thanks for an interesting post Anthony. I’m 72 and have worn hearing aids for about 12 yrs now. So I have moved from the analog to digital types and now to the blue tooth eqipped latest technology from Phonak (Swiss). Yes they are expensive but without them I am nearly deaf. In my case, both my parents needed hearing aids in their senior years and their working environment had little to do with their or my hearing loss.
One of the things I haven’t seen mentioned in the posts is that for people with severe hearing loss, behind the ear types are essentially mandatory, in order to build in the power that is required. However the latest are less bulky than those of 4 years ago in my case and this is helpful when eyeglasses arms compete for the space behind your ear. I get nearly two weeks out of batteries with essentially full time wear.
The technology in this field moves as fast or faster that that of computers, in my experience. More advanced models with improved features every two years or so it seems. Directional microphones, multiple programs for ditterent situations and bluetooth devices to wear to help with TV listening. However trying to hear, or understand a conversation is a crowded dining room or meeting room is still a real challenge. The directional microphones have helped here.
As others have mentioned, the facility where I bought these aids are always there to service them when it is required and usually for no or little charge. The tubes and filters need to be replaced about every six months and adjustments to the programs made using their computer software. They can even tell how many hours a day you wear your aids, how often you crank up the volume and which programs you tend to use most. In other words, these are not simple devices.
Yes they are expensive, but compared to doing without them I am very glad they are available and will scrimp on other items to make their purchase possible.
Thanks again for a very interesting post.
Ron Sinclair
I think that there is a limited group of people who are going to buy hearing aids therefore dropping the price of these modern hearing aids is not going to result in a huge increase in demand.The research and development costs are high and must be paid for but we would expect the price of hearing aids to fall in the long run.I have high level hearing loss but I am reluctant to buy a hearing aid at the price they are now even if they are much better than they used to be because of modern technology.
Azygos, here is a discussion I came across some time back regarding hearing impaired med professionals and stethoscope use; it is behind a login wall, otherwise I would just post a link (names/IDs removed):
– – – – – – – – – – – – – – – – – – – – – – – – – – –
… the (stethoscope) frequency range of interest is relatively wide: 22-650 Hz approx.
This encompasses the low-freq heart sounds (most studies record the lowest heart sound at 24.5 Hz) and the not-as-low freq lung sounds. …
Noise-canceling headphones should be a must, along with an easy-to-use volume control! But the fact is, even with my bilateral Harmony / 90K combo, I have not had trouble with heart sounds or lung sounds – no matter what is “supposed” to be the case. I just make sure I have fresh batteries in the E-scope and in the Headphone (if I am using a noise-canceling set). Somehow, reality derfies theory. But for challenging diagnostic cases, it would be interesting to see what a freq-shift would do…and it would be a great help to so many out there!
I use stethoscopes every single work day and have used some very curious combinations in my time. Before getting CI’s, there were times that were very challenging. At one point I had my RN staff do most auscultation because I could not trust my hearing. Today, I am finding things my staff missed! Its not that they do not hear well, the fact is we Hoh folks know what we are missing so we try harder and get the most out of the little we have.
At the present time, I use the Cardionics E-Scope II with a set of headphones. Keep in mind that the E-Scope requires a mono headphone or you just hear out of one side. So I use a mono-to-stereo adapter jack that plugs into the scope and the headphone plugs into it. Yes, I have also used the famous Howard Samuels ear buds. They do work well IF you buy good quality ear buds. They are small and portable. The only difficulty is the 30 seconds it takes to slip them onto the t-mic and make sure the cord is not tangled.
Cord management is a big issue. I keep my headphone cord on a small rubber spool that holds the excess so I have no trailing wired. The E-scope clips on my belt like a phone. The Headphone wire goes straight to the headphone around my neck. Then the stethoscope chest-piece goes into my trouser pocket. If you wear scrubs, the modern ones have a zillion pockets so even the headphones can be in a pocket. Check out AviatorScrubs.com. But you can get pretty cool scrubs at a local uniform store.
Unfortunately, interference is a huge problem with neck loops and t-coils in almost every medical environment.The buzz makes the t-coil a poor choice for everyday use around medical equipment. In a quiet room, I sometimes plug in a small folding stereo speaker / amplifier set I got from Radio shack years ago. Patiernts love it because they get to hear their own heart beat and lung sounds.
Noise canceling headphones are a wonderful idea in the ER and when people areound are talking. In such challenging places, my little on-the-ear Sennheiser NC headphones do not block out sufficient noise. Over-the-ear sets work best, such as my Bose QC-15. The problem is they have another switch to flip and are too bulky to keep around my neck all the time.
Littman makes some wonderful Bluetooth stethoscopes for folks with bluetooth-enabled HAs or CIs. I did not get these as I would have to use a bluetooth neck loop with its inherent T-coil problem, AND I do not fancy paying over $1K for a “scope when the e-scope works.
– – – – – – – – – – – – – – – – – – – – – – –
If you’re interested, one can join the forum (get a login ID) at:
http://www.hearingjourney.com/
and search for “stethoscopes” to see the discussion.
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Replacing them after you leave them on the coffee table within reach of the dogs!
All very interesting. Neither of my parents ever had hearing aids, Daddy because he didn’t need one and Mom because she didn’t think she needed one. :). Her hearing loss was the result of a bout of Scarlet Fever when she was 8, and evidently–she said–a hearing aid wouldn’t help her much. Plus she was very cheap, and since she’d got along for 60 years without one clearly she could save her money for something else.
So far my hearing is fine, but it’s nice to know the technology is out there when/if it stops being fine.
I have been using BTE aids for a year to reduce tinnitus I got by living too close to an 8 in gun battery in Vietnam. At the beginning my tinnitus was matched by a 57dB tone at 6KHZ. After a year it matched a 32dB tone at 6KHZ. Subjectively the difference went from a steam whistle close by to an organ in a church across the street with a key stuck down. It is still annoying when I think about it but not nearly as painfully distracting as before. So far the improvement continues even if I do not wear the aids for weeks.
The BTE aids I used for tinnitus produce a continuing sound like a zylophone playing random notes. Neither the Audiologist nor my General Practitioner understand why it works. Maybe it’s placebo, but as long as the improvement persists I don’t care.
Yes they are expensive and in my case not covered by insurance. Whether the price is based on cost or other factors I do not know. But I suggest, if you are convinced that there is excessive profit involved, that you start making and selling your own brand. That’s how markets work.
Re the comment that you should expect hearing aids to last for 2-3years. I’ve been wearing hearing aids for 40years. My last 2 aids, both analogue, have lasted well over 10 years each.
Hi Anthony,
Some healthy skepticism may be required.
This post caught my attention as I wear BTE hearing aids, and I have a good friend who is our city’s ear nose and throat specialist, and before I got my hearing aids (about 2 years ago) he told me what I should expect to pay. It was along the lines of $5000 (NZ), which is about $4,000 (US). He commented then that the price was way too high and could be lower. I forwarded him your post. Here is Wayne’s comment:
“Thanks for that. However the justification for the high price in totally unconvincing. When the NHS in the UK put out a tender for hearing aids the price dropped from 900 pounds to 90 pounds for the same item. They can still make money on 90. It doesn’t include fitting fee, but that is usually quite reasonable. No – there is definitely strategic price control going on somewhere in the process.”
Robin (New Zealand)
Anthony, thanks for an excellent post on hearing aids. I can see why they are relatively expensive. While there may not be a cartel keeping the prices high, I would have thought that, with time, procedures could be standardised so that people could do a lot of the preparatory work themselves. And competition should, over time, drive down hearing aid prices. Even so, because hearing is so precious, professional help is probably best, and that costs money.
I have loss in my right ear, from otosclerosis see http://en.wikipedia.org/wiki/Otosclerosis , which has now given me high frequency tinnitus in that ear. My choice was an operation (stapedectomy see http://en.wikipedia.org/wiki/Stapedectomy), which the ENT surgeon thought would be too risky, or a hearing aid (Phonak Versata). This helps me hear better and also helps to mask the tinnitus, though this varies from day-to-day. Today, my right ear humming away!
Dave asked about what can be done for tinnitus. From my own experience, I suggest he sees an audiologist who will be able to say whether the tinnitus is due to otosclerosis or it’s sensori-neural or there’s some other cause. If it’s sclerosis then a stapedectomy may be the answer. If this cannot be done then a good hearing aid will help to mask the tinnitus. I’ve tried an aid that generated white noise, which helps some people. In my case it didn’t but may do the trick for Dave.
My mother had a hearing aid from the UK National Health Service in the 1960’s that was around the size of an old Sony Walkman with a not dissimilar ear cord to an ear mold. I have been wearing hearing aids for the last 30 years – due to inheriting my mother’s problem greatly assisted by too many hours working alongside fighter aircraft in reheat.
The first aids I had were from the UK National Health system and were simple Behind the Ear (BTE) analogue amplifiers with clipping of the highest output. The NHS only started supplying digital hearing aids around ten years ago. I moved to a commercial In the ear (ITE) aid in UK at the cost of £2,400 in the early 90’s this was digital with adaptive volume control and a simple graphic equalizer. I replaced that in the US for $2000 with a more updated aid 6 years later. As my hearing got a little worse I updated to a digital BTE with several different settings and ‘bluetooth’ at a cost of $3000 – around the same price as the early digital aid that I got in UK 15 years previously.
When I got my first hearing aid I was very self-conscious as being deaf and failing to hear people seems to be treated in a less friendly way by society. People seem to think someone who does not hear them is stupid or rude; hiding the hearing aid only reinforces their assumption. I am now beyond being embarrassed and would rather have a hearing aid that works and allows me to do my job even to carrying around a Walkman sized device similar to what my mother used.. My current Oticon hearing aid has a neck pendant called a streamer that provides Bluetooth connectivity and with its own microphone allows me to answer my cellphone even if it’s in my pocket or somewhere within 30 feet. The people I work with have got used to me apparently talking to myself.
As to your points Anthony. I can understand that hand tailoring a set of hearing aid circuits to fit inside the ear canal is extremely manpower intensive and skilled. But I have to wonder if that is due to the wish for the recipients to have a contact lens equivalent in hearing aids. A standard small electronics container could be fitted to any earpiece and if it cannot be buried right in the canal then it is just an In The Ear aid alternatively the microphone and speaker could be in the canal but all the electronics in a standard ‘pack’ behind the ear. Both these methods would standardize the electronics for the aids and make them more mass-producible reducing their price.
Feedback is an area that you did not mention. Although electronics can be used to limit feedback it is difficult when the speaker and the microphone are both in the ear canal. With my hearing loss the power output is such that feedback can only really be avoided with a BTE aid. This means the microphones are also BTE but there are 3 on my aid which allows noise cancelling and user choice of which ones to be active.
Finally, thanks to the way people use Walkman, the iPod and other digital music systems the number of people with deafness is about to increase dramatically. This will change the market from specialist providers to a mass market. As soon as that happens (and posts here suggest it is happening) it will be seen as a business opportunity and the current trio of major hearing aid manufacturers will suddenly have to defend their market share. If as some posters here are surmising the germanium issue is just a marketing ploy, then the mass-market will soon bring in changes. In real terms the price of hearing aids is already dropping, I think that this will continue.
For those with tinnitus – I have occasional very severe tinnitus (up to the level of sitting close to the engines in an aircraft at takeoff) but have found that a cocktail of vitamins and protein supplements appears to greatly assist. There is a fair amount of research on this area to be found on the internet and everyone is different in their vitamin balance it may be an idea to have some tests done to see if you are not absorbing enough of a vitamin or protein.
WOW!! What an informative and useful discussion.
After owning 3 sets of HAs over the past 20 years, I have an observation about the following comment …
“The average person goes back to the audiologists between 12 and 18 times in their first year – and that is almost always covered in the purchase price of the aids. At an average cost of $100 per office visit, it’s quick to see that upwards of $2500 of a set of hearing aids can be just for the audiologist’s office time.”
The average of 12-18 visits strikes me as quite high. In my experience, in two of my HA cases, there was no need for a follow up visit, while in the 3rd case an adjustment was necessary to tweek my right-side HA. Thus, counting the initial hearing evaluation visit and the subsequent “installation visit” for the aids (two ITE and now a BTE), the average time spent with the audiologists for each set of HA was less than 20% (at most) of the claimed 12-18 average.
Hmmmm … maybe that provides a persuasive reason to negotiate/obtain a better price with the audiologist next time.
Many thanks, Anthony, for getting this “off topic” topic in front of such a well informed group of readers.
I’m an analog IC designer (Ph.D. EE with 25+ years experience, if you care) who works on nanometer scale chips. I also work in the Minneapolis area so I have friends who work in the medical electronics business. So I can make a few observations on the technology involved, and in short, much of what makes the iPhone cheap doesn’t apply to hearing aids.
The newest technologies in say 45nm would certainly be feasible for these projects in theory, since the digital voltage is around 1V max. I’d hate to do the analog design, though. The transistor gates in a 45nm process are around 14-15 atoms so you get significant quantum mechanical tunneling through the gate, and the drain to source leakage is very, very high. That is a factor even in what I call low-speed analog design in these technologies of 100 MHz or so. But at audio frequencies the leakage would be exceptionally difficult to deal with for the analog part of the chip. The digital would be straightforward, but since there’s relatively little digital processing, the chip for a hearing aid would be what we call “pad limited”, meaning that the chip size would be dictated by necessary communication paths off the chip, which would significantly drive up the chip cost since silicon is expensive for these processes.
But you could never, ever make a hearing aid design work economically at 45nm. What we in the business call NRE (non-recoverable expenses) in this technology start at around $20M per project, so you can really only contemplate these technologies for things that are going to be selling hundreds of millions per year, while hearing aids don’t even hit the 2M/year level. Doing the math on the back of my napkin, the entire hearing aid industry would have to submit the minimum order for wafers every other year to supply itself (details later if there’s demand). At such low volumes your NRE is easily going to be $40M+ since the foundry isn’t going to be cutting you a break, if you can even get in, since they don’t like low volume customers.
To give you a feel for what it takes to really make use of one of the modern, cheap-in-volume processes, we order twice as many wafers a day as the entire hearing aid industry would use in a year and it’s still hard to justify the various expenses.
Overall, you’re far better off using an older, lower speed (and lower leakage) CMOS process. The expenses of designing a single mask set in something like a 180nm process are around $20K vs. $2.5M+ for a 45nm process. You get a similar break in the software needed to design the chips, too.
The germanium issue is also a bit oversold. In the last 20 years there’s been a huge increase in what we call subthreshold design techniques that would allow replacing the germanium power amplifier with an integrated solution in CMOS at nearly the same efficiency. The design techniques aren’t as well known as what I assume the germanium users are doing, but they’re out there and used in many areas such as watches and the like. They’re useful for slow designs like these audio frequencies, but they’re not what I’d call mainstream.
Most frustrating to me would be the overall design cycle, though. From talking to my Medtronic neighbor the FDA is a pain to deal with. His example was a medical chip, where he finished the design in about 12 months. Then it went out to trials and those trials are expensive in terms of insurance, medical doctor’s time, result analysis, lawyers to look over paperwork, paperwork required for engineers to submit, etc. All the while the FDA was in the loop to slow things down, sending things back to make a few tweaks, etc. Overall it took 5 years for approval, which is better than the typical 7 for a pacemaker. But in that 5 year span the original foundry nearly went out of business and if it had he’d have had to start over. Compare that with the overhead of the FCC, where approval of a wireless chip usually is done in less than a month at a relatively low cost, and from design start to volume production can be less than 18 months. I understand the need to be safe, but those “hunter’s ears” you’re talking about don’t go through the FDA and that’s one of the bigger reasons they’re much cheaper. When you get the FDA into the loop you automatically delay the process and drive up the cost immensely.
Ian E says:
September 10, 2011 at 2:07 am
Interesting stuff. As an English reader, perhaps someone could tell me if the poor in the USA can receive any help in getting these sophisticated, but clearly very pricey, modern aids?
I can tell him definitively, yes. We have Medicaid and other programs that make such things cost almost nothing for the poor. It is the “working poor” who have trouble with these prices. They make too much for the handouts, but not enough for unusual expenses.
Jim,
Thank you
Azygos
If I may be pardoned for going OT from the OT topic, I was interested in the case of tinnitus being dealt with as a vitamin C deficiency. I have an inner ear problem, not hearing but balance. At first it was assumed to be an inner ear infection, but antibiotics and elapsed time, both usually equally effective for infections, did not help. I did a lot of reading, and found the answer: I had a manganese deficiency. A supplement fixes the problem for me, but not for everyone. Didn’t seem to help my tinnitus, though. I just had to get used to having my own flock of cicadas following me around.
There has also been consolidation in the industry. Many smaller companies doing the most advance technology (I actually worked at one) in the 90s have been bought out by larger firms.