Digital communications and the new medtech commercial model

Healthcare systems are increasing applying value-based models in which purchasers are looking for real-world evidence that premium medical devices improve patient outcomes and reduce the total costs of care. Added to this, new low-cost companies – often arising in emerging markets – are providing clinically-acceptable products as much lower price points.

Power shift to institutional decision makers
The focus on value-based models is linked to the change in who makes purchasing decisions in healthcare systems. Power continues to move from clinicians to institutional decision makers: hospitals, committees, buying groups, and regional and governmental agencies.

Not focusing on institutional payers is costly. Boston Consulting Group (BCG) estimates that: “Those companies that employ primarily a clinician-focused model generate revenues per sales rep that, on average, are 35% to 50% of the revenues generated by companies whose commercial models target administrative decision makers.”(1)