Medical Technology Value Analysis Strategy
Securing healthcare facility acceptance to make your product available for institutional formulary use requires more than just a desirable medical technology able to consistently, and even cost effectively, deliver results to patients. Medical device and biotech manufacturers must undergo a Value Analysis Committee (VAC) evaluation process at each healthcare institution and prove the value of their technology, device, biologic or service. The bar for acceptance can be significant, as healthcare providers and executive administrators hold each purchase to specific standards, including a comparison to current and competitive offerings. In addition to improving the quality of care, teams are pressured to reduce the overall costs of care by 10%, which drives significant scrutiny in product costs.
Important to navigating this process, especially for emerging technologies, is a well outlined Value Analysis Strategy, built on thorough understanding of what materials Value Analysis Committees seek, the metrics driving selection, and evidence presented by competitors. Such a Value Analysis Strategy can help to navigate this important gatekeeping review process with efficiency and determine potential hurdles.
It is no longer sufficient to direct marketing strategy only towards clinicians, even a champion physician. In addition to physicians, Value Analysis Committees include executive heath administrators, supply chain, financial and nursing leadership, in addition to other members of the healthcare management. Hospital purchasing preferences are no longer built on only the clinical benefits. Decision makers consider how the product or service provides increased value by improving patient outcomes and reducing the overall cost of care. Medical device manufacturers need to understand the VAC requirements and how to address them.
The Value Analysis Strategy will provide actionable due diligence to guide sales and marketing teams as well as inform clinical trial design. A deep dive into current value analysis adoption programs helps teams to strategically focus resources to develop and prepare the requisite information to facilitate their product selection for formulary inclusion.
- Understand physician preference item (PPI) influence in the target clinical area
- Research the value of your technology’s improved outcomes compared to competitive vendors as perceived by VACs
- Focus on improved outcomes that substantiate stronger price negotiations
The Value Analysis Strategy may include:
- One-on-one interviews with hospital VAC members
- Confirmation of the required metrics each VAC considers when evaluating innovation
- Development of VAC materials specific to your technology and based on the Value Analysis requirements
Navigate the obstacles of the healthcare Value Analysis process for your lifescience innovation with a well outlined Value Analysis Strategy to anticipate potential hurdles.