Elsevier Business Intelligence announces the publication
of a new Special Report:
Medical Device Landscape:
How regulatory changes and cost control measures
are reshaping the industry
Originally published in Medtech Insight: Medical Technology Market Intelligence®
While the insurance industry and Big Pharma make headlines during the health care reform debate, medical device manufacturers shouldn't relax their guard for even a moment: From the rising clout of group purchasing organizations (GPOs) to payment bundling and physicians' growing allegiance with hospitals in product price negotiations, the device market is facing some of the most serious challenges to its profits in years. How aggressive will GPOs get with device companies? How has the tough economy impacted medical device funding? And what can manufacturers do to help insure their success in this rapidly shifting environment? This Special Report answers all these questions and more with in-depth analysis of the impact of new device regulations combined with new moves among payors to lower costs.
This detailed 24-page report is a must-read for every medical device reimbursement, marketing, sales, business development and investment executive in medical technology today, whether you're a device start up seeking funding, an orthopedics executive struggling with the new device industry-physician transparency laws, or even a sales rep wondering why your clients have stopped returning your calls.
Prepared by Medtech Insight’s expert analysts, the report spotlights how a vast range of cost-cutting, ethics and health care reform measures are impacting the medical device industry, and forecasts potential longterm effects of the upheaval.
This Special Report examines ...
- How the bond between group purchasing organizations and hospitals is growing stronger every day, and how the burden of cost-cutting is now shifting from health care providers to medical device manufacturers themselves
- CMS' three-year pilot program that will experiment with single, bundled-payment systems for selected hospitals serving orthopedic and cardiac patients
- The plethora of new rules and regulations governing medical device companies and their relationships with physicians, and how to stay on the right side of the law
- Why physicians are suddenly less likely to purchase high-priced medical devices based on their own preferences, as in the past, and are instead working with hospital management to develop low-cost purchasing plans
- The perilous state of medical device funding, from health care reform's dampening effect on investor enthusiasm to the economy-based decline of once-reliable device VCs...... and much more.
It's all about the margins
What's driving hospitals into the arms of aggressive GPOs? According to one GPO CEO, it's a rising tide of bitterness at some hospitals toward manufacturers operating on high margins, but still trying to pass along increasing costs to facilities struggling financially. Nevertheless, this provides an unexpected opportunity for device manufacturers who are willing to work with providers in cutting costs to actually increase their market share.
The threat to medical device innovation
Some changes coming down the pike as part of health care reform could benefit hospitals, physicians and patients, but what effect will they have on medical device manufacturers? The device industry worries that letting hospitals make gang decisions through payment bundling will cut them out of the decision-making process altogether, creating an arid landscape for new technology and innovation.
Is it an educational seminar or a golf outing?
What's a device manufacturer and its sales force to do? Now that the health care regulatory watchdogs have spoken, pretty much any traditional gifts, remunerations or consulting contracts with physicians are off-limits. This report outlines the penalties already paid by prominent device companies and explains that the scrutiny is getting even harsher. The solution for confused executives? The "common-sense" or "straight face" tests that you should use to decide what's ethical and what will get you into hot water.
From product selection process to medical device startup investment trends, these are just some of the issues and actionable insight included in this must-read report. And it could only be delivered by Medtech Insight, the premier resource for medical technology intelligence, relied on by executives at a majority of the top 50 medtech companies in the world.