The healthcare market is complex and constantly evolving.
When it comes to medical device go-to-market strategies, keeping on top of current trends is key.
A trend to be aware of in the procurement of medical devices, is for hospitals and healthcare providers to have decision-making units that combine both clinical and administrative staff.
This multidisciplinary decision-making approach means that medical effectiveness and financial viability are likely to be considered when evaluating medical devices.
Another significant shift in the healthcare sector is the move towards value-based healthcare.
This model looks at treatment outcomes relative to cost, aiming to provide better care to patients for the best possible value. Again, this means that patient experience, patient outcomes, efficiency, and cost are all likely to factor into medical device procurement decisions.
Having to address the needs of multiple stakeholders and demonstrate the value your device delivers makes it more complicated than ever to develop a value proposition for commercial success.
For value proposition development that gives your medical device the best opportunity to take market share, it’s critical to take a research-driven approach that addresses the needs of decision-makers and highlights the benefits of your product in improving the quality and efficiency of healthcare.
The importance of establishing if your product is innovative or equivalent in value proposition development
One of the first questions you need to address in value proposition development is whether your device is classified as innovative or equivalent.
The messages and benefits you communicate in your value proposition are likely to differ depending on which category your device falls into.
Innovative products
Innovative medical devices are best defined as products that provide clear advantages over existing solutions on the market.
These advantages might include more cutting-edge technology, unique features, or superior performance.
Innovative products provide you with the ability to charge a higher price point, although it’s important to really highlight the impact of their perceived benefits to help decision-makers justify the additional costs as part of your medical device strategy.
If you’re developing a value proposition for an innovative product, you might focus on:
- Clinical benefits
Explain how your device improves patient outcomes, such as reducing complications, shortening the length of hospital stays, or speeding up recovery times. - Improvements to efficiency
Decision makers might be swayed by how your product streamlines processes or reduces the workload of medical professionals. - Patient experience
If your device can improve patient comfort, improve adherence to home treatment plans due to its ease of use, or lead to an increase in patient satisfaction with the treatment process, this might be influential for some decision makers.
Equivalent products
Equivalent products are devices that don’t offer significant advantages over existing solutions but are more cost-effective.
The fact that these products provide similar benefits at a lower price than incumbent products can make them immediately attractive to cost-conscious decision-makers.
However, some stakeholders may also hold reservations about the potential risk of making the switch to a new product.
So, for value proposition development for an equivalent product, you might focus more on:
- Cost savings
To meet the needs of savings-focused decision makers, really focus on the financial benefits of switching to your product. It’s important to highlight all the areas where your product can lower costs, which might include not only the initial purchase price but also ongoing maintenance or upkeep. - Quality assurance
To address the concerns that some stakeholders might have about switching, highlight anything that promotes the quality and reliability of your product, such as any certifications you’ve received or clinical trial results.
Understanding value-based payments and its impact on your medical device strategy
The other trend to be aware of when developing a value proposition is the shift towards value-based healthcare and, as part of this, value-based payments.
The value-based payment (VBP) model rewards healthcare providers for delivering high-quality care and improving patient outcomes, rather than simply performing more procedures.
A key part of VBP is bundled payments, where healthcare providers receive a single payment for all the services related to a specific patient condition that they are treating.
Payments are made for the entire episode of patient care, regardless of how long or how many treatments it might take. This encourages providers to be more efficient and deliver better-quality care for faster recovery times at a lower cost.
With this in mind, it’s likely that healthcare providers continue to move away from products that they don’t feel contribute to positive patient outcomes, enhance the patient experience, or improve the efficiency of healthcare services.
For medical device manufacturers, this trend towards value-based payments presents both challenges and opportunities for your medical device strategy.
If you’re able to demonstrate that your product can reduce complications, improve patient outcomes, and reduce any financial risks for healthcare providers - it’s likely that your product will be highly valued, and you should make these key benefits part of your value proposition.
On the other hand, if you’re not able to illustrate how your device can align with a healthcare provider’s value-based goals, you’re likely to be overlooked in favor of more effective and efficient alternatives - and it may be time to look at how to improve your product to become more attractive.
The IDR Medical approach to value proposition development
At IDR Medical, we’ve been helping manufacturers launch medical devices and develop winning value propositions successfully for more than 20 years.
With experience in medical device launches in over 30 different countries, we have the depth of knowledge of international healthcare markets to help you craft a compelling value proposition that aligns with current industry trends and positions your device for commercial success.
With the backdrop of shifts towards bundled pricing in healthcare, it’s more important than ever to highlight how your product improves the quality of patient care, leads to better patient outcomes, and provides a return on investment.
To maximize the success of your new medical device, it is crucial to develop and communicate a meaningful value proposition to potential customers.
The goal is to create a simple, overarching message that clearly articulates what your brand, product, or service delivers in a way that resonates with your target audience.
This ensures that your product leverages its features and benefits effectively, avoiding inappropriate categorization where price becomes the main differentiator.
Our research approach typically starts with qualitative open projective market research techniques, such as focus groups and in-depth interviews. These approaches focus on understanding customer responses to your product, identifying perceived benefits, and the unmet needs that your product is helping to solve.
The outputs of this initial qualitative research are then used to develop a concept value proposition.
This concept value proposition is then tested and refined using more structured techniques, which often involves quantitative testing of prospective messages with clinical and commercial decision-makers, as well as users of your product or service.
By using both qualitative and quantitative research methods in the development of your value proposition, we can ensure that the value proposition is both compelling and supported by robust data.
Need support developing your value proposition to gain market share?
In today’s complex healthcare market, with a focus on value-based healthcare, creating a compelling value proposition for your medical device is more important than ever.
At IDR Medical, we have over 20 years of experience helping medical device manufacturers launch their products successfully. We support all areas of your go-to-market strategy, including market research, customer segmentation, medical device pricing strategy, and value proposition development.
With an in-depth understanding of international healthcare trends and the intricacies of bundled pricing, we have the expertise you need to highlight how your product improves patient care, enhances outcomes, and promotes efficiencies - helping you develop a value proposition that captures market share.
Get in touch today for a free consultation, or download our brochure to learn more.
