US healthcare system consolidation, and the increasing percentage of US employment of physicians directly by healthcare systems, are dramatically changing the US medical device market, as I’ve previously discussed here, here, and here.
This week, Evan Anderson presents a first-hand view of these changes in a great article on the Stanford Biodesign Alumni blog. Highly recommended.
2 thoughts on “The US Medical Device Sales Model is Changing”
Jay, thank for suggesting this article. It definitely resonates with me having last made a presentation to a hospital product committee just a little over a year ago. This process, as it currently exists in many hospitals, is still not very mature. I was shocked to learn that the committee members did not even know many of the key parameters and metrics necessary to make an objective decision. Plus there is still some gray area especially when it comes to complication rates (which are a factor in considering total costs) and when these complication rates can vary from hospital to hospital and from physician to physician. The take away message is that long ago, it used to be enough to have regulatory approval; currently, you also need reimbursement to have a business; and in the near future you will also need objective evidence of creating value for the “system”, the exact value will depend on the definition of the “system”.
Thanks Jay great article