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Here's How Hospitals Want to Collaborate with You

For hospitals, the combination of changes in reimbursement, physician employment and the ever-present drive to improve quality while reducing cost has resulted in an inflection point in the healthcare industry that has prompted device manufacturers and hospital innovation to navigate uncharted waters.

While many manufacturers have endeavored to more effectively and strategically engage with customers, there is still great opportunity and challenge in doing so. For this column, I interviewed three thought-leading colleagues, asking, “What should device companies (vendors) consider when attempting to grow their business with providers?” I’ve also added my experience and insights gained from work in strategic assessment, planning and development in orthopedics and spine.

Opportunity and Challenge

By intimately understanding provider customers and their product use cycle, device manufacturers can forge deeper relations that embed their products and themselves as preferred partners and ideally, expand the traditional supply boundaries and develop strategic partnerships with executive administration leadership.

What Do Hospitals/Health Systems Want Now?

In the constantly changing reimbursement environment, hospitals are scouring their organizations to reduce cost while improving quality. Current terms that describe these processes include value analysis, low-cost/high-value, process standardization, value-based reimbursement, vendor consolidation and physician/hospital partnerships.

Additionally, the Institute for Healthcare Improvement (IHI) has pioneered a model for change, The “Triple Aim” that focuses on 1) improving clinical outcomes for populations, 2) reducing costs and 3) improving patient satisfaction as illustrated in the following graphic.

There is potentially a role for OEMs in this industry-wide initiative, not only delivering cost savings but also incremental service line benefits such as tools and insights to increase market share, redesign care, create differentiation and substantiate demonstrable quality. During the last 10 years, some OEMs have built or acquired “value-add” businesses with the intention of impacting hospital service lines beyond product and price. While providers have been open to such attempts, some value-add business units have devolved or been eliminated, ostensibly due to insufficient return on investment or a fundamental clash of internal cultures; sales versus service line redesign.

Read more at BONEZONE®.

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