The key to success in the medical device market is to ensure that value benefits align across stakeholders, especially with the payers.
The ability of stakeholders within the healthcare industry to use big data to evaluate therapies is setting the foundation for the shift towards value-based payment models.
Medical device developers will have to carefully assess, plan and coordinate with a range of potential stakeholders to generate higher margins in a value-based care model. Manufacturers will need to demonstrate more clinical effectiveness and cost impact of new treatments to ensure providers and payers will achieve the necessary value. Payers will hold providers more accountable for delivering better patient outcomes, causing device manufacturers to encounter cost pressures. While this may make profitability more challenging, manufacturers have the opportunity to increase sustainability and improve patient outcomes by demonstrating value through new types of evidence.
Device manufacturers will need to begin thinking about value earlier in the product life cycle. By including an economic analysis at the start of the development process, manufacturers can avoid delaying market entry. Moreover, for some devices, manufacturers may consider investing in a pre-market approval programme that gathers detailed clinical evidence and cost impact information simultaneously.
Information incorporated in analyses should consider what different stakeholders value and their willingness to pay. Creating a stakeholder value map can help identify which stakeholders value what, and over what time frame that value is returned.
Engaging in a partnership with a CRO with expertise in this area can assist during the stakeholder value mapping process. ICON's cross-functional experts are unparalleled in their ability to accelerate, demonstrate, and communicate the value of your product to drive payer acceptance and patient access. To speak to one of our experts, please contact us.
This blog is an edited version of “Value-based healthcare: matching who benefits with who pays” which appeared in PharmaTimes Online on 3rd July 2018. To view the full article, please visit http://www.pharmatimes.com/