Across the world, the quest for ever-better patient outcomes and constantly rising medical costs are driving the movement to value based health care (VBHC). In place of paying providers based on volume of services, VBHC generally links payment to the clinical and cost outcomes of treating a defined patient need, condition or episode of care. Policymakers and payers believe that holding providers accountable in this way incentivises care improvements that will produce better individual patient and population health outcomes at a lower overall cost.
The rapid shift to VBHC is reshaping markets for medical and diagnostic devices in several important ways. Its incentives significantly affect the purchasing behaviour of payers, clinicians and patients – and what device makers must do to win their business. Generally, this includes determining how these various stakeholders define value, and gathering evidence to build a value based purchasing case early in the product development cycle.
In this paper, we examine some of the major factors that influence how different stakeholders define value. We then describe a model for mapping stakeholder value that can help drive profitable device development programmes in increasingly value driven markets.