No surprise: what we’re seeing is a
shift from the old fee-per-service
world to a new world where
outcomes are going to be much
more important. And costs are
much more important. The old
model that med techs were very
successful with (making great
products and convincing clinicians
to use them) is not going to be as
successful in the future.
Surprise: there is something you
can do about it.
Changes are happening faster than
the healthcare industry is used to.
So it is required for executives to
be able to respond faster. L.E.K has
done an annual hospital survey
five years in a row, to get a sense
of what hospitals are thinking in
terms of their purchasing patterns
and their needs with respect to
med tech companies. Following is
a summary of how hospitals define
what they are doing to address
The survey is focused on hospital
administrators versus clinicians.
About half are C-suite – CEOs,
CFOs, COOs – and the other half
are administrators involved in the
purchase decision-making process
– VPs of procurement, materials
managers, and others, from both
major metropolitan hospitals
and community hospitals as well.
So it measures both economic
and clinical considerations. The
decision still involves the clinician,
but now administrators have more
of a voice.
“We would really like clinical
outcomes data. For example,
we want to know if a knee
replacement that costs two times
as much as a competitor’s product
is actually going to last double the
time as the competitor’s model.”
– Director of Purchasing at a
There are four key questions L.E.K.
identified that help illuminate
what companies need to do, and it
is all about messaging, something
key to the sales and marketing
function. It’s a move from
emphasizing product excellence
to a combination of what L.E.K.
calls customer excellence.
According to the study, these four
questions focus on the areas sales
In our previous issue, we ran an article by Editorial Board member Sebby Borriello
on the changing landscape of selling to hospitals, and how it’s become more
difficult to climb the decision tree. To follow up on that theme, here’s some wisdom
from a study of hospital executives conducted by consulting firm L.E.k.