Medical device companies are in the midst of a mass cycle of innovation as they adapt to value-based model pricing, MDDI reports.
Here is what you should know.
1. As payers continue to experiment with implementing value based pricing, they shift the risk back to healthcare delivery organizations to increase their accountability for the cost and quality of care they provide.
2. Delivery organizations are responding to the new models by taking horizontal consolidation approaches to their companies. By creating larger companies, providers expect to have more control over vendors' pricing.
Delivery organizations believe consolidation will strengthen their position when negotiating with payers for reimbursement.
3. Delivery organizations are also centering on telemedicine and remote monitoring to be able to offer expertise at lower costs than traditional delivery methods.
4. Device makers can adapt to value based pricing if they can demonstrate economic and clinical value, built strategic accounts management skills and explore opportunities to add value.
Companies that quickly develop the capabilities to operate in a value-based marketplace, will "win" this evolving environment.
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