AHRMM 2009: Hospitals Raise Bar on Purchasing Decisions
The task of selling into the tough-to-crack hospital market is likely to become even more challenging for device manufacturers in the future as more hospitals toughen policies regarding the introduction of new products to their increasingly cash-strapped facilities. Materials managers from around the industry have pointed messages about what it will take for suppliers to make the sale, from providing better data to proving your company's financial stability..
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The need for a positive economic argument when introducing a new medtech product is more critical than ever. Management teams are well aware of the need to demonstrate compelling economic data, but can a product still be successful without an economic benefit in the increasingly cost-conscious health care marketplace? Overcoming negative economics means identifying a combination of positive attributes that can overcome the economic barrier, and this thought process should be conducted well before significant R&D funds are invested.
The economic recession has forged tighter bonds between hospitals and their group purchasing organizations. Medtech interviews Novation LLC's president and CEO Jody Hatcher, who has set an aggressive tone in dealing with device manufacturers.
The product selection process at many hospitals has become a much more complicated process, something that actually pleases hospital executives, but may cause some problems for device manufacturers. The changes are targeted at high-priced medical devices such as orthopedic implants, which traditionally have been bought and sold based almost completely on physician preference. However, in the current tough economy, a combination of data and physicians willing to work with hospitals to keep costs down is making the supply chain a different market than it has been in the past.