Various trends are pushing down medical device prices and forcing technology companies to alter their business strategies, according to StarTribune.
Here are five insights:
1. Hospitals are no longer falling prey to the device company strategy of making slight improvements in existing devices and increasing prices.
2. The device companies can also no longer depend on physician loyalty, as many physicians work for hospitals and don't have much say.
3. Competition may also drive down prices, as hospitals feel pressured to cut costs.
4. Some medical device companies are coping with the shift in trends by buying out emerging companies with more costly innovative products.
5. Since 2010, global average sale prices for common cardiac and orthopedic devices have decreased by about 4 percent, according to GlobalData data.