How To Make a Subscription Business Model Work in Medtech
We present the data to the clinician through a web portal that helps clinicians promote better feeding, continuity of care, and to better focus resources on high-risk babies. Our database is always growing, and new results strengthen our algorithms, resulting in better actionable data. A subscription model allows us to keep all users working from the most current data available, and allows our technology to always be on the leading edge of our analytics.
MD+DI: Why do you think this specific business model could be good for business for both device developers and consumers? What’s the upside for both parties?
Malice: Many procedures in the hospital can be predicted. If the prediction models are strong enough, utilization of devices and services are also predictable. That means the supplier can create a recurring pricing model that the hospital can easily budget. The hospital can depend on the repeating costs, and the supplier can depend on the revenue stream. This requires a substantial change of mindset for both parties, but it can certainly be a win-win.
MD+DI: What medical technologies do you think would be ideal for a subscription-based business model in today’s market? What factors do you think make for a good match with this kind of business strategy?
Malice: Risk sharing is the buzzword of the day in many hospitals. Arms-length sales transactions between the supplier and the caregiver generally leave the risk of efficacy with the caregiver. Subscription models cre...
Source: MDDI - Category: Medical Devices Authors: Kristopher Sturgis Tags: MD & M East (New York) Business Source Type: news
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