Why This Is Important
Medtech’s improving revenue trends have increased the confidence of medical device leadership in future growth, and is a driver to gain new market share and core competencies through mergers and acquisitions (Tables 1 and 2).
Value-Based Care: A Key Driver for CAGR in Medtech
According to a study performed by Lazard Global Healthcare Leaders3 with 200 C-level executives and almost 100 investors across three industries—pharmaceuticals/biotech; medical devices and diagnostics; and healthcare services—value-based care is here to stay. In the findings from the survey, almost half (47 percent) of C-level executives cited the adoption of value-based models in transforming the industry over the next five to 10 years.
Value-Based Care and the New Administration
While the number of insured Americans may decrease (which will have a negative impact on the medical device industry), healthcare executives believe value-based care will continue to transform the healthcare industry over the next decade.
Conclusion and Recommendations
Price pressure is one of the top strategic challenges facing the industry. Meeting strategic challenges will require creating healthcare innovation, whether through new innovations in technology or new business models. Hospitals continuously assess medtech to improve clinical outcomes and sustain their own financial health. In any medical specialty, explore product design and pricing strategies to address these issues.
Maria Shepherd has more than 20 years of leadership experience in medical device/life-science marketing in small startups and top-tier companies. After her industry career, including her role as vice president of marketing for Oridion Medical—where she boosted the company valuation prior to its acquisition by Covidien/Medtronic—director of marketing for Philips Medical, and senior management roles at Boston Scientific Corp., she founded Medi-Vantage. Medi-Vantage provides marketing and business strategy and innovation research for the medical device industry. The firm quantitatively and qualitatively sizes and segments opportunities, evaluates new technologies, provides marketing services, and assesses prospective acquisitions. Shepherd has taught marketing and product development courses and is a member of the Aligo Medtech Investment Committee (www.msbiv.com). She can be reached at 855-343-3100 ext. 102 or at firstname.lastname@example.org.