Why Every Medtech Company Needs a Value-Based Strategy

BCG October 19, 2017
Jens Deerberg-Wittram, MD , Laura Lüdtke , Bob Lavoie , Daniel Schroer , and Götz Gerecke

In response to health care’s ongoing cost crisis and the growing awareness of unnecessary variation in outcomes across health systems, more and more stakeholders in the industry are embracing value-based health care. The approach emphasizes the systematic measurement of health outcomes and costs by disease, condition, or risk group and the development of customized interventions, including new approaches to care delivery, that improve the ratio of outcomes to costs for the defined subpopulations.¹

While some medtech CEOs have been at the forefront of this trend, many remain cautious about fully embracing a value-based strategy. Some are concerned that value-based reimbursement models—in which device makers are paid not only for the products they sell but also for the outcomes they deliver—will...

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