Medical Device Tax and how it will impact the industry

It was announced in January that there would be a new tax on medical devices - 2.3% tax on all new devices sold in the United States. This will be challenging for many of the small and mid-sized firms who develop and deliver these devices who are already facing slim reimbursement and challenging budgets.  This has been one of the fastest growing sectors of healthcare as well as one of the most innovative.  Part of the reason for the imposed tax is the number of new patients gaining access to healthcare who will now have access to these devices increasing sales.  InMedica points out there are several ways to overcome this new burden including streamlining business unites, passing on the costs to the consumer and outsourcing the manufacturing.

This is just one of the aspects of the Affordable Care Act that will impact the industry.  At the Medical Device Pricing, Reimbursement and Market Access Forum, Peter Weber, MD, Chief Medical Officer, COCHLEAR will be examining the other aspects of change brought on by the Affordable Care Act in his presentation Anticipate the Effects of the Shift to Accountable Care.  For more information on this session and the rest of the agenda, download the brochure.  If you'd like to join us in Philadelphia, as a reader of this blog when you register to join us and mention code XP1813BLOG, you'll save 15% off the standard rate.

What do you think is the biggest impact this tax will have on the medical device industry?

Smarter sales forces can be the key to successful medical device success

 As the healthcare landscape changes, the medical device landscape will continue to face challenges.  In an article at MedCity News, they looked at a few of the challenges facing the industry and how the manufactures can work to overcoming the changing landscape.

They address the current reimbursement situation of pricing confidentiality agreements.  But with this practice, the doctors are given specific devices to be used through a contract with the hospital before the patient is assessed to determine what's right for them.  To fix this, the pricing strategies for hospitals and devices should be considered heavily.

Other challenges of the current medical device sales force include the current sales forces who are geographically targeted.  Many hospitals are also consolidating and finding ways to cut costs, including purchasing on more efficient levels as groups, not just a hospital by hospital basis.  Adding initiatives here won't help medical device companies, but developing a smarter sales force that knows the audience and the needs of the hospital can be beneficial here.  Part of increasing the appeal is by developing relationships with doctors and figuring out exactly what they want and need in medical devices.

This May at the Medical Device Pricing, Reimbursement, and Market Access event, Jacob Drapkin, Vice President, Health Economics & Market Access, Ethicon Endo-Surgery and Laurel Sweeney, Senior Director, Reimbursement and Legislative Affairs, Philips Healthcare will be presenting Teach Your Sales Team a New Language: Connect Product Development to the Commercial Strategy by Focusing on Value to help you find new ways for your sales force to become more effective.  For more information on this session and the rest of the program, download the agenda.  If you'd like to join us, as a reader of this blog when you register to join us and mention code XP1813BLOG, you'll save 15% off the standard rate.

Medical Device Forum Spotlight: Strategically Price Your Medical Technologies for the New Era in Healthcare

Establishing the right price point for a new medical device is essential, but is also extremely complex. If you aim too high, your product might only become available to a niche market. If you aim too low, you might undervalue your device and not earn as much as you have the potential for. This determination is one that must be made sooner rather than later, as it directs the rest of the commercial strategy for the product. In this session, get a holistic framework and other tools to adapt your pricing in the face of the “New Healthcare Buyer” and rapidly changing healthcare marketplace.  This May at the Medical Device Pricing, Reimbursement and Market Access Forum, we'll address this during the  session Strategically Price Your Medical Technologies for the New Era in Healthcare.

Medical Device Pricing, Reimbursement and Market Access Forum will take place May 22-23, 2013 in Boston, Massachussets. If you'd like to know more about this program, download the agenda. If you'd like to join us, as a reader of this blog when you register to join us and mention code XP1813BLOG, you'll save 10% off the standard rate.

Featured session: Strategically Price Your Medical Technologies for the New Era in Healthcare

Featured speaker: Christopher Provines, Founder, VALUE VANTAGE PARTNERS

About the session: Chris provides a dynamic and holistic framework for medical technology companies to think through the strategic issues and critical inputs for defining a winning pricing strategy. He discusses how to use the framework and other tools to adapt
your pricing in the face of “New Healthcare Buyer” and rapidly changing healthcare marketplace. Select case studies are used to provide key insights to inform your pricing strategies.