Articles

4 emerging approaches to medtech contracting agreements

November 25, 2020
EKG hospital medical equipment vital statistics

In recent years, a range of factors are driving the development of new pricing and reimbursement models in the medical device sector. As the industry is considering different options, many device manufacturers are increasingly needing to address uncertainties and pushbacks from payers. A recent analysis by Joanne Clark, Bhavesh Patel, and Mireia Cortina in Med Device Online found that there are several rapidly emerging challenges hindering adoption of innovative pricing and contracting schemes for medical devices.

Despite these potential hurdles, device manufacturers continue to work to engage with payers and build support for innovative pricing and contracting schemes. In recent years, they have identified opportunities to further refine strategies to address payer concerns about reimbursement of novel medical devices and technologies. Their efforts have resulted in the emergence of four primary types of contracting agreements: outcomes-based risk-sharing, risk-sharing with mutual gains, coverage with evidence development, and value-based healthcare or procurement.

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