Data and Analytics Can Deliver Spinal Device Sales

The need to cut costs across the U.S. healthcare system is motivated by several factors. One is the implementation of the Affordable Care Act. Another is the increasing consolidation of the industry through mergers and acquisitions of hospitals. The third is the growth of group purchasing organizations (GPOs), integrated delivery networks (IDNs), accountable care organizations (ACOs) and value analysis teams (VATs). Combined, these factors are driving patient-centric approaches to health care while, at the same time, emphasizing and incentivizing an increase in fiscal responsibility. The U.S. spinal implant market The spinal implant market has been particularly affected by this drive to cut costs. Most billion-dollar medical device markets, like reconstructive orthopedics and cardiac rhythm management markets, are dominated by a small handful of companies. The spinal implant market, however, includes hundreds of small companies selling minimally differentiated products, many of which target smaller regional markets based around a single state or even a single city. At the same time, buying decisions are increasingly moving away from physician preferences and towards centralized decision-makers in large hospital groups, ACOs and IDNs, and the lack of differentiation between many of these spinal implant devices means that competition is intense and often focused on price. Valued at over $5.6 billion in 2017, the U.S. spinal implant market is expected to show minimal growth th...
Source: MDDI - Category: Medical Devices Authors: Tags: Orthopedics Implants Source Type: news