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Value-Based Care Is Driving The Medical Device Industry

According to a new report issued by PwC Health Research Institute, manufacturers of diagnostics tools and healthcare devices are seeking to launch a wider array of services with the intent of helping to drive value for healthcare providers.

New Technologies in Great Demand

While there was a time when medical devices were focused on diagnostics and for the treatment and monitoring of patients, this new study conducted by PwC is indicative of the need for new technologies that are at the core of value-based healthcare. Manufacturers are now being led to reconsider the products that they produce in order to offer a broader assortment of tools that will assist patients and their doctors by increasing efficiency and improving the quality of care.

Patient Engagement a Key Focus

The key focus now is to engage with patients in order to assist doctors in their efforts to improve clinical care and performance while demonstrating the wider implications of value they can provide to healthcare systems. The report is entitled "Beyond the device: From producer to problem solver" and is a look at how technology is improving healthcare in key areas.

How Industry Leaders Are Setting the Stage for Innovation

What the study sought to do was examine by revenue, the top ten medical device manufacturers to see what they were doing to reshape their industry within their organization. The report focused on recent years and what it found was that key players have expanded their portfolio to include tools for cloud-based technology as well as other new tools to help streamline the workflow within clinical settings. These tools also provide real-time analytics with consumer and clinician vantage points being incorporated into the report. Each of these companies has progressed to a focus that is 'beyond the device' and also beyond PoC (point of care) because they acquired an array of other medical technology companies.

Startups Following Suit

In the meantime, newer market startups are already seeking to improve clinical technology but their focus doesn't stop there. Like the bigger companies, the trendsetters, these startups are looking at how to improve home care with products that are subscription based which in turn provides added value by bringing in greater and ongoing revenue that can pay for the development and purchase of new products along the way.

Study Finding: Industry Is Adapting to Market Needs

On the whole, the PwC report found that the industry has begun to adapt to the needs of its customers with mobile friendly technology that provide reimbursement incentives from insurance providers such as Medicare and Medicaid. Digital tools are becoming the industry standard and so it is now incumbent upon manufacturers to go the extra mile to improve value so that they can use profits in the development of future products.

Stryker Performance Solutions Used as a Model in the PwC Study

In the PwC study a sampling of current offerings was examined, one in particular is manufactured by Stryker Performance Solutions. Their goal shifted from 'nudging' physicians and hospitals to use their products to offering services in areas such as consulting and subscription based tools for analytics. The report went on to quote Stryker's VP as saying they wanted to evolve into a "broader partner" to both physicians and providers. With this new focus on adding value to promote the further development of consumer-oriented technology, it is the hope that revenue raised from this shifted paradigm will provide the funds necessary to go forth with much needed R&D in an effort to avoid unnecessary readmissions resulting from conditions that could have been corrected if monitored in real time.

With such a focus on value to provide the revenue to further Research and Development, the industry is optimistic for future innovations that are also value based. By driving revenue up, they can offer new technology and patient centric services.

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