Medtech value-based contracting is still in its early stages. DRG Partner Adrienne Lovink discusses the state of this trend today, and key challenges stakeholders are facing.


I would say, in general, value-based contracting specific to med devices is still in a fairly early stage. There are a number of agreements that have been in place for a long time but really only the simple agreements. So only things like, "We will guarantee that the lead is good for a certain amount of time," or some bimodal type of agreement.

Many of the agreements are actually still in a pilot stage. And they're in a pilot stage because the data collection and the data management of the contracts is reasonably difficult. So they are piloting agreements between a med device company and a particular health system, or piloting agreements between a med device company and a specific name payer. But they are trying to figure out how exactly to manage the agreements. And it's still early stage because it is difficult to manage the specifics of the contracts.

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