With the Affordable Care Act (ACA) in the limelight, there is now an increasing focus on quality and patient outcomes rather than just the treatment price. This signals a change in the traditional marketing strategies of MedTech companies. It also presents a plethora of opportunities for MedTech companies who want to make the most of this shift in the US health care environment.
Since the launch of the ACA, there has been an increased pressure on hospitals to be able to make profits while still delivering affordable and quality care to its patients. Under such scenarios, MedTech companies should not be just marketing and promoting products but also thinking of entire continuum of care solutions for providers that can help them attain sustainable growth. In order to achieve this, MedTech should start aligning their communication and marketing messages not around products but around procedures. For example, rather than selling consumables used daily by nurses and emphasizing low cost, MedTech can rethink of the marketing communication and focus on how their devices can help reduce infections, thus reducing readmissions and saving expenses for the hospital. Marketing departments should shift their focus from just products to the complete process that happens in hospitals and tie that to their offerings, thus presenting a compelling case for selling.
Recently, DePuy Synthes, a Johnson and Johnson company specializing into developing knee and hip replacement devices, has partnered with Value Stream Partners, which are experts in developing bundled payment solutions. With the help of this partnership, the company will be better able to align its portfolio of products in the form of solutions for providers. Such partnerships indicate the shift towards a risk-sharing model and outcomes-based agreement between providers and MedTech.
The previously long-held belief of low cost will no longer reap great benefits to MedTech companies as the focus for their customers is not only cost but affordable and quality care. With this, companies need to rethink their marketing and communications strategy before approaching their customers. Those who are able to be seen as solution providers and partners during these dynamic times will win the ballgame at the end.
Follow Isha Suman on Twitter at @suman_ishaDRG for additional medtech market insights.