Medical devices are an integral part of the healthcare ecosystem, and any changes to the functioning of this system can have a direct and significant impact on the device industry.
However, due to healthcare reforms and changes in reimbursement models, professional medical device companies are pursuing ways to adjust their business models to thrive in the value-driven environment. Here are some key strategies that the device manufacturers have pursued:
Exploring value-based partnerships with providers and/or payers:
Medical device companies are exploring risk-based deals with providers and/or payers to ensure their new technologies are widely adopted and paid for. Cardiac surgeries and hip replacement surgeries are among the most common surgeries conducted in the U.S. and account for a high proportion of total healthcare expenditures.
With rising pressure to curtail healthcare costs, it has become imperative for companies that manufacture cardiac and orthopedic implants to demonstrate the effectiveness and even bear costs if their devices fail to perform as claimed.
Medical device companies believe that such partnerships will help them capture market share and gain provider consent for their new technologies entering the market.
Offering service-based solutions for providers:
Medical device manufacturers are expanding their product offerings to include solutions that assist healthcare providers in fulfilling value-based contracts with payers. In delivering care with improved outcomes, providers want and need medical device manufacturers to innovate devices that generate data and provide actionable insights to providers.
Integrating data capture, cloud storage, and connectivity features into devices increase the adoption of medical devices and facilitate effective healthcare delivery.
Medtech companies have been managing patient care by forming joint ventures or acquiring healthcare providers.