The adoption of the accountable care organization (ACO) model is changing the way hospitals evaluate their structure, roles, activities and benchmarks. While much of the buzz is about the IT tools and investments ACOs are driving to support population health management and collaborative care, business process change is the biggest challenge facing healthcare providers today. For medical device companies, sales and pricing models must adjust to address decision making by committees and risk sharing models in pricing for solutions. Device companies need to determine how their products add value in a world driven by data and analytics, with the goal of providing a holistic view of the patient.
"What was once a payment is now a cost. What was once a cost is now a potential savings. Is this a revolution, or evolution with an accelerated adoption curve?" asked Frost & Sullivan Vice President of Healthcare and Life Sciences Greg Caressi, during the opening of his speech at the 18th Annual Medical Devices 2013: A Frost & Sullivan Executive MindXchange. Caressi continued: "Successful approaches must reduce fragmentation to align with the future. Are you part of the problem or part of the solution?"
For a copy of his presentation, Healthcare 2025: Personalization Without PCP, or more information on The 19th Annual Medical Devices 2014: A Frost & Sullivan Executive MindXchange, please email Britni Myers, Corporate Communications, at britni.myers[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
With healthcare shifting to be more like traditional service industries, more value must be delivered through technology and lesser trained clinical personnel. With a predicted shortage of 65,800 primary care physicians (PCPs) by 2025, and the leveraging of telehealth solutions, the role of the PCP, while not being eliminated, must change. Combine this with the fact that 70 percent of patients would trust an automated device for diagnosis and advice on whether to see a doctor (according to a survey sponsored by Cisco), and it is clear that the integration of IT solutions will significantly impact the way healthcare is delivered
The geographic shift of growth in healthcare spending is changing as well. From 2010-2020, the compound annual growth rate (CAGR) of Asia-Pacific's total healthcare expenditure is projected at 9.2 percent, which is 2.3 times that of the G7 nations (U.S., UK, France, Germany, Italy, Canada and Japan) at a 4.0 percent CAGR. These financial trends continue to drive the movement of medical device manufacturing and research into the developing world, as has occurred in other industries.
Accordingly, forward-looking organizations must not base product and tactical sales strategies on quick returns, as resources limitations will eventually constrain a company's ability to support lagging business models. Healthcare players must de-emphasize clinicians and products, and capitalize on rising connected health solutions, focusing on growth opportunities in data exchange and interoperability, tiered product strategies to address segmented markets, and solution sales versus product sales.
The 19th Annual Medical Devices 2014: A Frost & Sullivan Executive MindXchange takes place March 9-11, 2014 at the Loews Coronado Bay Resort and Spa in San Diego, Calif. Participants will gain insight into the future of medical technology and healthcare delivery as they engage with other seasoned medical device executives driving the future of healthcare, as well as their company's innovation and business strategy.
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