As value-based contracting starts to pick up steam in medtech, these types of agreements will be more common in certain medtech markets.
DRG Partner Adrienne Lovink outlines the 3 top characteristics of markets where we’ll see value-based contracting grow first.
In general, I think we're gonna see a lot more of them in a couple very specific areas. The initial proliferation, our expectation will be in higher burden diseases. So things like cardiovascular, heart failure, diabetes, renal disease, higher burden diseases. We're also gonna see it first in areas that the health system is focused on for cost containment. Heart failure is a great example there, where there's so much emphasis on how do you reduce hospitalizations, how do you reduce the total cost of care.
And then, I think we're gonna see more specific to device areas, where there is clinical differentiation between the products. It's harder to make these agreements in more commoditized markets, but in markets where one brand actually could deliver a clinically significant benefit, compared to another brand, those types of areas are really ripe for these types of agreements.