DRG Partner Adrienne Lovink discusses the top stakeholders in value-based contracting in the medtech industry, and key trends to watch as this trend continues.
When a med device company enters into a value-based contracting agreement, it is most commonly between the device company and the provider or the hospital. That's because the hospital continues to be the dominant decision-maker when it relates to selecting a brand or selecting a device. That said, there are a couple agreements that have surfaced over the last couple years that are directly between the medical device manufacturer and the payer. That is a less common interaction model in med device in general, but it is a trend that we should be watching because it changes who has influence over brand selection and it also changes how med device companies think about who their end stakeholders are and who their customers could be in the market.