When we hear the term “disruptive technology,” we typically think of the latest gadget or online service that creates a new market or reinvents an old one. In terms of medical devices, it means the latest breakthroughs that address unmet clinical needs, open doors to better treatment options—and create opportunities for innovative device companies.
As the transition from fee-for-service to value-based care reshapes healthcare delivery, new demands are driving the medical technology industry to redefine disruption. Products alone are not enough. To respond to the new disruption, medical technology providers need to offer business models based on services, not just devices.
That’s because our customers—particularly leaders of large healthcare institutions—are under tremendous pressure to achieve fewer readmissions, improved adherence to treatment protocols and better outcomes under new payment models. Their biggest concerns are around high-volume, routine procedures. To get the results they need, they must carefully manage the entire episode of care. That means it’s not just about a product or device. Services are critical.
Treatment of acute myocardial infarction is a good example. Under value-based care, the drug-eluting stent used in the procedure will not be paid for under a pure DRG (diagnosis-related group) payment. The stent is just one part of a broader episode-of-care evaluation that extends long after the patient returns home.