Written by Laura Dyrda
Here are five key thoughts on the orthopedic device industry.
1. We can already see payers reducing reimbursement, which could lead to several cost-saving strategies. Fox Valley Orthopaedics CEO Chase Behrendt says payers will eventually eliminate the cost-plus percent contracts that don’t incentivize cost control. As a result, implant manufactures will lower cost and “force much more aggressive price competition against current vendors.”
(Read Chase’s entire thoughts here).
2. In order to survive, big orthopedic companies will become multi-product segment providers and utilize lower margin products to gain exclusivity and guaranteed market share. They’ll also streamline product delivery to maximize service rep efforts.