January 28, 2010

The growing pressure for “better care at lower cost” is changing the fundamental rules of the medical device and diagnostics business. New rules call for new strategies, and that’s the case made by authors Rita E. Numerof, Ph.D., President and Bill Ott, M.B.A., Senior Consultant, in their article, A Seat at the Strategy Table , published January 2010 in MD&DI Magazine.

At the core of the change is the growing emphasis on economic and clinical value (ECV). US payors are increasing following the rest of the world, insisting on demonstrated ECV to justify reimbursement premiums, or sometimes, reimbursement at all. This requires that ECV become a consideration as early as new product development decisions, and calls for a broader range of functional participation in strategic product portfolio decision-making.