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Hospitals Up the Ante in Device Purchasing Decisions

Executive Summary

In many US hospitals, materials, purchasing, and supply chain executives often have the clout to influence thumbs-up or thumbs-down decisions on most new products that enter the building. That is one major reason why medical device manufacturers are waking up to the fact that so-called "me-too" items and minor upgrades to existing products aren’t as acceptable to hospitals as they once were. But in the evolving market in materials office supplies, smart manufacturers with a clear path to working alongside materials executives offer products that keep costs down, add to patient safety, and enhance patient care.

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Provider Trends: ACOs Begin to Take Shape

A new health-care delivery mode that could drastically alter how the industry is run took another significant step forward at the end of March, when the US Department of Health and Human Services issued proposed rules to govern Accountable Care Organizations. ACOs are designed to create strong networks of physicians and hospitals with aligned incentives focused on patient quality of care and costs. To gain some insight on possible future implications of ACOs for the medical device industry, Medtech Insight recently spoke with Ron Wince, president and CEO of the consulting firm Guidon Performance Solutions.

Device Companies and GPOs: Is a Battle Looming?

This February, Medtronic. announced it was canceling five cardiovascular and orthopedic contracts-reported to be worth $2 billion a year-with GPO Novation, which negotiates deals on behalf of more than 1,600 hospitals. The action has the potential to change how product contracts with hospitals are negotiated, but at this point, it is hard to say if it represents a burgeoning trend that others will follow or just another mêlée in the long history of turbulent device manufacturer/GPO relations.

Changing Times Raise Barriers to Device Innovation

While legal considerations play a role in determining if or how soon use of a medical device is adopted, other factors are now just as important and in some cases more important in influencing a provider’s product selection process.

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