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

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.