Growing Pressures In Medtech Drive Consideration Of Innovative Pricing Models

Factors including hospital consolidation and increasing price transparency bring growing pricing pressure to medtech manufacturers. In this context, more manufacturers are considering new approaches to value-based pricing to maximize opportunity while minimizing risk, according to this expert column from CRA's Matthew Majewski and Kira Gordon.

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Many manufacturers in the medical technology sector are facing growing pricing pressure, due in part to factors including hospital consolidation and greater price transparency.With consolidation in the hospital and health-care delivery sectors, larger hospital systems are better positioned to negotiate for lower prices. This pricing pressure is forcing many manufacturers to consider new value-based pricing models, but such models can come with both strategic and operational challenges that must be thoughtfully considered to be implemented successfully.

In recent years, hospital consolidation has led to the formation of several large health systems. For medical device manufacturers, hospital...

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