Medtech Industry needs to build credibility with Hospitals

McKinsey & Co. released a new report, called "Improving healthcare while curbing cost: Med-tech companies offer a solution", showing that the medtech industry has to, not only build awareness of its products and solutions, but also build credibility among hospitals.

MDDI

The McKinsey survey 157-hospital executives in the U.S. and Europe, fewer than half ranked the clinical and technical expertise of large equipment manufacturers as "excellent." The result was even worse for makers of devices and consummables. Only 19% of hospital executives responded that large medtech makers' understanding of the hospital business was "excellent."

"With few exceptions, med-tech companies do not offer to share risk with their hospital customers," the report charges. "They focus on marketing the technical features of their products and price accordingly. Yet providers say they are more willing to work with med-tech partners if they know they share the risks as well as the benefits of the arrangement."

       The report suggests that there is a $44 billion opportunity in the U.S. if medtech companies work with hospitals and provide "beyond the product" solutions.  It also points out that executing contractual agreements where medtech companies share risk would help to build credibility.