Series of blog post written by Mathieu Petitjean, CEO, Mednest and Susan Z. Paquette MBA, MS, Executive Consultant, MedNest
Part 1: Why you need to adapt your strategy for the $156 billion US market.
Garnering the attention of U.S. policy makers, investors and innovators, the U.S. Medical Device market reached $156 billion in 2017 (40% of the global market!) and is expected to grow to $208 billion in 2023.
It represents a small fraction of the total U.S. Healthcare spend of $3.6 trillion and, as a result, is directly impacted by the evolving forces and regulations that aim to curb the cost of Healthcare in the U.S.
To be relevant and competitive in this evolving market, and in order to optimize the return on capital of “MedTech” ventures or new product introductions, leadership teams need to approach the U.S. market with plans that are more targeted and comprehensive than in the past.
Such market entry plans must include :
1- A proven and documented value proposition that addresses the new needs of the U.S. Healthcare market:
- Improvement of clinical and workflow related outcomes,
- Reduction of cost
- Improvement of access to care
2- while optimizing the regulatory pathways and reimbursement plans (CMS coding, payer’s coverage and payment).
Because all these dimensions are interconnected, a sequential approach is often counterproductive.We have regularly observed that the MedTech venture teams who are located outside the U.S. manage these trade-offs and related optimization decisions poorly.
We are starting a series of articles to provide some insights and recommendations to avoid common pitfalls.
If you want a free mentoring session for your medical devices company, contact us now!