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Medical device reimbursement: How it’s a brave new world

March 19, 2018 By Chris Newmarker

Earth Moon new world medical device reimbursement

[Image courtesy of NASA]

Populations in developing countries are aging. Healthcare systems are feeling even more financial pressure. In response, there’s been a shift toward payment models in the U.S. and elsewhere that emphasize “value.” In other words, health providers need to run more efficiently and effectively to get paid.

Medical device reimbursement will never be the same.

“This is a brave new world when it comes to reimbursement,” said Tom Hughes, senior principal adviser for health economics and reimbursement at Minneapolis-based RCRI.

As a report from EY recently explained, the new environment has sparked a host of mergers and partnerships. For example, major U.S. pharmacy chain CVS Health in December 2017 said it plans to acquire Aetna, one of the US’s largest commercial insurers, for $69 billion. Amazon, Berkshire Hathaway and JPMorgan Chase have a partnership to tackle rising health care costs for their U.S. employees.

It’s still a volume, fee-based model in the United States. But there is also tremendous change — and great opportunities out there for medical device companies of all sizes meeting an unmet need — saving costs and improving quality of care.

Listen to MDO’s newest podcast and find out from Hughes how medical device companies can adapt.

About The Author

Chris Newmarker

Chris Newmarker is the executive editor of WTWH Media life science's news websites and publications including MassDevice, Medical Design & Outsourcing and more. A professional journalist of 18 years, he is a veteran of UBM (now Informa) and The Associated Press whose career has taken him from Ohio to Virginia, New Jersey and, most recently, Minnesota. He’s covered a wide variety of subjects, but his focus over the past decade has been business and technology. He holds bachelor’s degrees in journalism and political science from Ohio State University. Connect with him on LinkedIn or email at cnewmarker@wtwhmedia.com.

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  • Home
  • Medical Device Business
    • Mergers & Acquisitions
    • Financial
    • Regulatory
  • Applications
    • Cardiovascular
    • Devices
    • Imaging
    • Implantables
    • Medical Equipment
    • Orthopedic
    • Surgical
  • Technologies
    • Supplies and Components Index
    • Contract Manufacturing
    • Components
    • Electronics
    • Extrusions
    • Materials
    • Motion Control
    • Prototyping
    • Pumps
    • Tubing
  • MedTech Resources
    • Medtech Events in 2025
    • The 2024 Medtech Big 100
    • Medical Device Handbook
    • MedTech 100 Index
    • Subscribe to Print Magazine
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    • Digital Editions
    • eBooks
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