Medtech companies are being challenged to fundamentally transform the way they operate in order to ensure sustained growth and profitability. Torben Danger, partner and global medtech sector leader, discusses how companies can overcome the daunting new challenges in the medtech industry.
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BCG and MedTech Europe have developed a value-based framework to help health care contracting authorities make smarter decisions in procuring medical technology.
The European Parliament passed a new public procurement directive in 2014 that encouraged hospitals and health care systems to move away from price-based procurement. Instead, the directive established a more holistic perspective that factors in quality, total costs across the life cycle of a product, and broader socioeconomic considerations for purchases of medical technology.
To support this initiative, The Boston Consulting Group and MedTech Europe—an alliance of European medical technology trade associations—have designed a framework to help contracting authorities better assess the true costs and value of medtech solutions, and consequently make smarter procurement decisions. Collaborating closely with specialists from leading health care institutions that have implemented innovative procurement practices, the joint effort has developed a simple nomenclature that will help purchasing officials create tendering processes for medical products that promote better patient outcomes in the most economically advantageous way.
The new framework is built to help break down organizational silos within health care institutions and spur innovation among medtech companies.
About 70% of public procurement decisions about medtech are determined based on price. A new report by BCG and MedTech Europe unveils a framework that incorporates patient outcomes and lower overall costs into purchasing decisions.Read the report