Recent changes in the US healthcare system are having a profound and transformational impact on the medical technology industry. As manufacturers face challenges to the traditional business model and the lack of reimbursement begins to limit the adoption and use of devices, medical technology companies now need to ensure that their offerings to the healthcare system are effectively differentiated. Several key factors will drive the outlook for the medical technology industry, including changes in how purchasing decisions are made and the rising demand for value-based products. In an operating environment where controlling costs is paramount, innovative medical devices that solely provide significant clinical advantages for patients may be at risk. Companies that can leverage an economic value proposition will have the opportunity to overcome the increasing barriers to favorable market access, despite the higher upfront costs.
Gaining access to markets and achieving favorable reimbursement are becoming more complicated. Consequently, medical technology companies must be ready to compete in the new healthcare environment by delivering a value-oriented product that lowers the total cost while improving clinical outcomes.