News and Insights
The Numerof 2020 Global Medical Device Outlook
As our Numerof 2020 Global Medical Device Outlook infographic illustrates, this year’s story for medical device manufacturers will be about adapting to pressures on price and demands for value. You’ll continue to engage in new and different ways with regulators, public and private payers, consumers, employers, health care delivery, physicians, retail clinics, and even pharmaceutical manufacturers.
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. Meanwhile, in the U.S., political and legislative actions will create risk and opportunity. However, progress on expediting pre-market approvals will continue. Government payers worldwide will insist on transparency for comparative quality and pricing, as well as comparative effectiveness research, real world evidence and risk-based pricing.
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 seeking to reduce surgical and procedure costs will push providers for more direct contracting and bundled prices, impacting medical device makers.
In the U.S., although physician employment by systems is stabilizing, healthcare delivery continues to centralize buying decisions in cross functional committees. However, new, high-level collaboration opportunities continue as systems seek ways to decrease costs and improve outcomes. Better positioning with integrated delivery networks (IDNs) will be key to future success.
Given this outlook, what’s next? We recommend these key action steps:
- Develop high value products backed by evidence
- Innovate new products and services for use across the care continuum
- Craft compelling economic & clinical value propositions
- Redesign commercial models to reach key customers & decision makers
- Align R&D, Medical Affairs, and Commercial functions
- Recruit, train talent to engage executive decision makers
- Elevate business acumen, diagnostic and influence skills
- Create collaboration opportunities with providers, payers, and market disruptors
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.