Medtronic’s CEO speaks about the need for economic evidence in a value-based healthcare system
Arundhati Parmar of Medical Device and Diagnostic Industry (MD+DI) online published an article recapping an interview between LifeScience Alley CEO Shaye Mandle and Medtronic CEO Omar Ishrak that took place at the LifeScience Alley’s annual conference last week.
Omar spoke about the effort Medtronic has undertaken to develop the economic evidence needed to convince the health care system that its products are more than just safe and clinically effective and that they provide value. This is not an easy task as Ishrak stated :
“If you go through economic value analysis, one finds especially with devices, that the economic value of devices and the clinical value of devices is realized at a different point in time than when the cost is incurred. The cost is incurred when the procedure is performed, the work is done…. The value of the devices is realized once the patient goes home.
And tying the two together in a way that’s fluid, in a way that’s transparent, in a way that is comprehensive is really what value-based healthcare is all about.
So this means that learning how to measure cost over an extended period of time in an objective and fair fashion that depicts the true value of the technology that’s being implanted or deployed, at its core that is really value- based healthcare.
Once you do that, then you can go to a variety of stakeholders in a matter of fact way and demonstrate why your products have value. “
Read the full article here.
Ishrak comments underline the importance of investing in a robust evidence package such as the EXCITE evidentiary bundle, that can convince hospital administrators and purchasing reviewers of the full value of the product.