Value Proposition Is Key to New Product Success in a Cost-Conscious Medtech Market (reblog)

The ongoing healthcare debate and likely proposals from Congress will be playing out over the next few weeks. There has been quite a bit of debate, heated town hall meetings, speculation, and so on. Some of the bills are proposing levying taxes on medical device companies, as well as hospitals, biotech companies, and pharmaceutical companies. It’s impossible to know at this time what will actually transpire. But one thing is certain: healthcare-related products and technologies must add value and improve efficiency.

Here is an excerpt from an article recently posted at Medical Devices Today:

The need for a positive economic argument when introducing a new medtech product is more critical than ever. Management teams are well aware of the need to demonstrate compelling economic data, but can a product still be successful without an economic benefit in the increasingly cost-conscious health care marketplace? After all, hospital purchasing committees supposedly evaluate and weigh a number of other product attributes, and most hospitals are not-for-profit institutions committed to their communities. But overcoming negative economics requires a combination of positive attributes. The relative strength of these attributes must be evaluated to determine if the economic barrier is, in fact, surmountable. And this thought process should be conducted well before significant R&D funds are invested.

Read the complete article