By adjusting business models, focusing on the customer, and creating deeper patient connections, medical device companies can thrive in this new world of value-based care.
There’s a shift happening throughout healthcare and life sciences from fee-for-service to value-based care. Medical device and diagnostic companies are no stranger to this evolution. In addition to creating life-saving products, they’ve established themselves as partners to healthcare providers. Both sides are working together for better clinical quality that improves outcomes and reduces cost.
Providers and insurers are consistently analyzing how a product impacts their business, whether it helps to reduce complications, decrease readmissions or increase precision and accuracy. So how can medical device companies keep pace with change? These are the three components that make up the new DNA of the medical device industry.
1. Renovate current business models
Most medical device companies are still in the second inning of a digital transformation. They have perfected a traditional model of selling product features on a clinical basis. In this environment, even incremental improvements can be difficult to scale across a complex marketplace. Many disregard the larger aspects of data, analytics, and unique strategies that drive truly successful relationships with customers.
But industry leaders are starting to embrace new models and think about end-to-end solutions that distinguish their product offerings. They’re now thinking holistically across the care ecosystem. This can range from incorporating services geared toward the patient to a full overhaul of how to segment and engage customers. That’s what’s going to make a difference in the bottom of the ninth, when today’s industry partners turn into tomorrow’s competitors.
2. Put every customer at the center
Unlike other industries, medical device companies have the challenge of providing value to multiple stakeholders. Instead of having one primary customer, they have three: payers, providers, patients. The weakest link (or relationship) can break the chain and severely restrict potential growth. If they fail to show the value of their technology, and get payers on board, then it is unlikely clinicians will have a choice to evaluate new technology. Medical device companies must put every customer at the center and demonstrate how their products will drive value to all stakeholders. This can be a new mindset that must come from the top of the organization to truly succeed.
3. Build deeper patient relationships
Medical device companies and patients have traditionally remained separate. But in many corners of the industry, patient engagement is becoming an urgent priority. Take surgery preparation for example. More manufacturers are using data to help prepare patients before, during and after surgery to ensure the best possible outcome. And patients appreciate it: 88% say it’s either very or somewhat important to have easy access to health records and data, and an equal percentage want to receive follow-ups on progress and outcomes.
The advent of wearables and sensors is empowering these kinds of patient relationships. Providers track progress and ingest the data from every interaction to ensure compliance and accountability. They can use the data to make more intelligent personalized care decisions that improve outcomes and experiences.
By adjusting business models, focusing on the customer, and creating deeper patient connections, medical device companies can thrive in this new world of value-based care while improving outcomes and reducing cost.