Current priorities of hospital executives show that cutting costs of medtech ranks third compared with desire to improve performance and drive operational efficiency.
A new report about the current priorities of hospital executives that cutting costs of medtech products rank third compared with their desire to improve performance and drive operational efficiency.
The report from ZS Associates must come as sweet music to those medtech companies who are making the pivot to selling the economic and clinical value of their products, rather than their feature benefits. The report The report is based on a survey of 85 hospital executives conducted in late 2015 and early this year. The executives were C-level executives and departmental leaders across business lines and the survey was intended to determine business priorities and to examine whether they differed by department.
Here is the breakdown of preference of cost reduction initiatives:
The above is important to note given that this focus on outcomes is the new normal. Here is what the report stated:
Hospitals' focus on outcomes is a recent development indicating that CMS's effort to emphasize quality metrics have succeeded in changing hospitals' priorities and behavior much faster and more effectively than many in the industry had anticipated. Even hospitals that don't participate in accountable care organizations or other voluntary programs are shifting their focus to outcomes and quality metrics.
It is the smart medtech player that will align business model, and product and services, to emerge as the preferred medtech partner of hospitals.
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Get ready for Massachusetts Medtech Week and attend BIOMEDevice Boston, April 13-14 to stay on top of industry trends.