News and Insights
The Numerof 2023 Global Medical Device Outlook
As our Numerof 2023 Global Medical Device Outlook infographic illustrates, this year’s story for medical device manufacturers will be about reconciling overhead inflation with market pressure on pricing, responding to demands for a data-based value narrative, and adjusting the commercialization process to an emerging post-pandemic reality.
Across the globe, engagement with stakeholders will require new approaches as systems and practices continue to limit representative access in some therapeutic areas. This will force continued innovation and an omnichannel approach – not just in your engagement efforts, but organizationally, in the way you structure and support your commercial model. The ongoing need for new and different ways to engage with healthcare executives, physicians, and payers is here to stay.
Regulators will continue tough enforcement, especially in the adverse event reporting universe. Globally, cost effectiveness evidence will play an ever more significant role in approvals. Given heightened economic pressures, government payers worldwide will insist on transparency for comparative quality and pricing, real world evidence and risk-based pricing. The aftershocks of the pandemic have intensified supply chain challenges. Manufacturers will increase efforts to re-shore critical supply chain elements to control end to end supply, quality and cost. In the U.S., the Inflation Reduction Act of 2022 is a game-changer for pharma; what it might mean for devices is still unclear. We will be closely monitoring the forthcoming negotiation process and debates that will shape the details of the Inflation Reduction Act and may have profound implications on the industry’s future.
Demanding evidence of better outcomes and lower costs, private payers will continue to expand value-based contracting, reference pricing, and direct purchasing of devices. Consumers will get more involved in choosing diagnostic tests as they also shop for lower cost, higher quality procedures. Employers and payers will look for ways to accelerate the migration of care to outpatient clinics as a path to lower costs and improved outcomes, creating new opportunities for innovative medical device makers.
In the U.S., centralization of decision-making in consolidated integrated delivery networks (IDNs) will continue to erode the influence of clinicians in buying decisions. Better positioning with these IDNs will be key to future success.
Given this outlook, what’s next? We recommend these key action steps:
- Redesign commercial models, targeting/segmentation
- Align R&D, Medical Affairs, Commercial functions
- Craft compelling databased economic & clinical value propositions that resonate with key stakeholders
- Innovate new products/services for select markets and use across the care continuum, including health at home
- Recruit, train talent to engage executive decision makers
- Elevate business acumen, diagnostic and influence skills
- Structure more strategic collaborations with providers/payers
At Numerof & Associates, we help medical device manufacturers achieve these key action steps for success in today’s evolving healthcare landscape. From competitive strategy and ensuring evidence to demonstrate value to commercial model innovation and implementation, we have solutions. Read more about our perspectives and solutions for the medical device industry and see our case studies.