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9 min reading time
I was reading “10 Key Concepts for Higher Sales into ACOs” by the CMR Institute out of Virginia.
Anthony Slonim, MD, DrPH, CPE, FACPE, President and CEO of Renown Health (Reno, NV) is quoted on page 2.
“If you want to talk to us about devices, we certainly need to understand survival rates and complication rates. However, we also need to know how your product will help us fulfill our mission of providing care to the communities we serve with the best quality and service for the least cost.”
Do you agree?
Do your sales teams tell a “best quality and service for the least cost” story when presenting to ACOs and hospital systems?
The paper continues with 10 concepts including:
• Avoidable readmissions (penalties for high 30-day readmission rates; Medicare withholds up to 3% starting this year)
• Health economics and comparative effectiveness research (direct comparisons of two or more interventions)
• Patient experience (the Hospital Consumer Assessment of Healthcare Providers and Systems survey known as HCAHPS)
The 14-page PDF is worth a read:
So, does “value” break through and get you the sale?
Going to Arab Health this week? Meet group members there!
Going to MD&M West Expo, Feb 10-12? List yourself.
Supplier is ISO certified but we are not certified.
Process validation at your suppliers’ sites?
Which software and software as a service (SAAS) products for the device industry?
“Low-risk” products FDA won’t regulate
Pitfalls of working with a contract manufacturers?
Guess the final Seahawks-Patriots score…
Make it a SUPER week.
P.S. Do you do business in the Asia-Pacific? See http://AsiaPacificDeviceSummit.com, a new conference
So, just one more quibble. I think the biggest losers in the VC dynamic as you describe it here are neither entrepreneurs nor investors, but patients.
That said, I still might like to quibble with one or two points. I’m not entirely convinced that entrepreneurs are “forced” to secure funding from VCs. I think VCs are the most obvious and easiest source of funding, and that it serves the VCs well for entrepreneurs to think they have no choice but to secure funding from them. I don’t know how crowdfunding is going to work out in the long run, but I appreciate that they have been so bold as to question the traditional way and seek an alternative that might better serve the goals of the entrepreneur.
I also wonder if by “entrepreneur” you mean the professional/serial entrepreneur, or an inventor. I think the professional entrepreneurs have become professional entrepreneurs because they have bought into, mastered, and are satisfied with the results of the traditional way. Therefore, they have no motivation to seek alternatives. I think many inventors are simply lambs to the slaughter when it comes to financing. While they may have motivation to seek a different way, they don’t know how, or often, even that it might be wise for them to do so.
In the digital world however we have abandoned to communicate face to face with the end-user thus we don’t understand their personal value system. Instead we use “foot in the door” strategies to permanently bomb the client with simple messages. Some companies place cookies into our computer when we visit their websites. Later when we access to the internet again a photo of our desired product and price will appear.
Just look also into the dynamics of the medtech industry …Innovative entrepreneur develops unique high quality, highly differentiated product. He is forced to finance his venture mainly through VC. The financiers are not interested in the product but in selling the company to the highest bidder. The buyer will not pay much cash for his acquisition and so the assets in the procured company are striped, the entrepreneur removed and the products integrated into the buying concern. Later product managers will have responsibility for the product. They make bulk offers to say hospital purchasers and those in turn will request offers from a number of competitive suppliers. The hospital purchasers will then tell the product manager how much they are ready to pay. The product manager will agree since he can blame various divisions in his company e.g. for manufacturing at high cost, …for acquiring to expensive technology etc. No talk about value anymore…maybe a few years later we hear about discontinuing product line or about recall of the product because some low cost materials have been used to substitute.
Thomas J Secor
Michael Ferguson, Ph.D.
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