Hospitals are Buying Disposables, Medical Equipment This Year, Say Decision Makers

L.E.K. Consulting has released the results of a strategic hospital priorities study, in which the firm surveyed nearly 200 senior hospital decision makers about their budget outlook and purchasing trends for 2011. The decision makers were specifically asked about medical device purchasing and other changes in the wake of healthcare reform.

The complete study, ""Healthcare Reform Shifts Hospital Priorities, Creates New Opportunities for MedTech Companies" can be downloaded in a pdf.

Here are key findings relevant to the medical device industry:

  • Nearly 60% of hospital executives surveyed expect budget increases in 2011 (up from 38% last year). Over the next five years, 37% plan to increase purchasing of large medical devices, 21% will increase small device purchasing, and 28% will up disposables purchasing.
  • Most executives surveyed said they are willing to pay a 10-15% premium for disposables that help them reduce errors and infection rates – due to reduced reimbursement rates under new federal guidelines, hospitals want products that will help them track and record quality improvements and outcomes.
  • Survey respondents rated product quality and reimbursement as the most important factors when buying from medtech companies today. However, in the next five years, they said clinical data, risk sharing, and full solution partnerships will become increasingly important.
  • More than half of respondents expect to use GPOs more by 2015 (up 20% from last year) and some are starting to use GPOs for high-priced capital equipment vs. only lower priced items. There’s also been a trend toward multi-source rather than single-source GPO contracts.

—Heather Thompson