Value-based contracting is an increasingly important topic for medtech companies.

DRG Partner Adrienne Lovink reviews the top 3 reasons we’re seeing this type of agreement grow in today’s landscape.


Value-based contracting is an increasingly important topic for medical device companies. There's a number of reasons for that. The top three reasons are they're increasingly looking for ways to engage effectively with non-clinical stakeholders. And non-clinical stakeholders care about a different set of parameters than the historical customer, which was the physician. Non-clinical stakeholders are looking for agreements around cost, agreements around outcomes, and that's one driving reason.

The second reason is that the market is shifting in how they distribute risk and moving risk from the hospitals and health systems to a bit more of the manufacturer. So it allows the manufacturer to put some guarantees in place around the outcomes that their devices provide and it allows the manufacturer and provider to share risk around delivering care to their patients.

The third reason is a general focus on how to manage cost and a general incentive for everybody in the healthcare ecosystem to align on and to be focused on the vision of good care at the lowest possible cost. And these types of agreements focus on how do we deliver the best care to the right patients while really optimizing for outcomes and optimizing for cost?

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