Nowadays, an important issue is “reduced total costs of care”. The repercussions are clear: to succeed, medical device companies will need to design and market their products to appeal not just to the preferences of physicians in the field, but also to the value-driven considerations that are becoming top-of-mind for administrators and managers. This will not always be easy to pull off, for a couple of reasons.
In the search for value, payers and providers are most interested in highly differentiated devices representing a significant improvement over the benchmark. The reality is that such breakthroughs are rare. Innovation is often an iterative process that yields relatively small improvements over existing products. So far, this approach has worked for medical devices companies as long as the physicians for whom new iterations were designed valued these improvements.
However, demonstrating the value of these products to payers and procurement departments may not be as easy. While the process of iterative innovation has often generated huge improvement in health outcomes over time, any one iteration may not be enough of an advance to be valued by buyers. In many cases, purchasers will prefer a “good enough” product with fewer features at a lower price point.
Baat Medical generates concepts in the Market Mapping & Concept process. Not only can these concepts been evaluated in terms of speed to market, reducing risk and lowering cost; it’s also a tool in estimating value-driven health assessment.