AdvaMed today launched a new value initiative that includes extensive tables of questions to help medical device companies formulate value-based arguments.
The value framework also includes tools specifically designed for diagnostic technologies, as well as report on understanding evidence and use cases.
“Value” has become an important word in medtech in recent years as government and private healthcare payers in the U.S. and around the world have moved away from traditional fee-for-service payments. Instead, payers such as the U.S. government’s Medicare program and private insurers favor health providers delivering more efficient and effective care. The situation means that device companies need to have arguments for why their products create value, both to persuade hospitals and clinics to use their devices and to arrange reimbursement from insurers.
“It is imperative that we know how to demonstrate and clearly articulate how our technologies can improve patient outcomes and create value. The challenge is that there hasn’t been a consistent way of talking about value or even assessing the value of medical technologies and technologies,” Nadim Yared, chairman of AdvaMed and CEO of CVRx, said during an AdvaMed webinar today.
To help its members better navigate this new world, AdvaMed brought in Deloitte Consulting about 2 years ago to help it evaluate the economic and clinical evaluation tools already out there – and conduct extensive interviews with AdvaMed members and officials from health providers and insurers.
The result was a framework that AdvaMed officials think will help medical device companies come up with truly comprehensive value-based arguments for their existing devices, Don May, executive VP of payment and health care delivery at AdvaMed, recently told MDO.