Medical Device Companies are Failing the Value-Based Care Test & Missing a Massive Opportunity!

Thank you for reading NewHealthcare Platforms' newsletter. With a massive value-based transformation of the healthcare industry underway, this newsletter will focus on its impact on the medical device industry reflected in the rise of value-based medical technologies, and platform business models that are significantly transforming payer and provider healthcare organizations. I will occasionally share updates on our company's unique services to accelerate and de-risk the transition!

DISCLAIMER: This newsletter contains opinions and speculations and is based solely on public information. It should not be considered medical, business or investment advice. The banner and other images included in this newsletter are AI-generated and created for illustrative purposes only unless other source is provided. All brand names, logos, and trademarks are the property of their respective owners. At the time of publication of this newsletter, the author has no business relationships, affiliations, or conflicts of interest with any of the companies mentioned except as noted. ** OPINIONS ARE PERSONAL AND NOT THOSE OF ANY AFFILIATED ORGANIZATIONS!

Hello again friends and colleagues,

The healthcare industry is undergoing a significant transformation as it shifts towards value-based care models. This new paradigm focuses on improving patient outcomes, enhancing care experiences, and reducing healthcare costs. As a result, the way medical technologies are created, deployed and evaluated must also evolve to align with these goals. Traditional methods, which often focus on the technology itself, is no longer be sufficient in the context of value-based care.?

I. Evaluating Medical Technology in the Age of Value-Based Care

The Peterson Health Technology Institute (PHTI) is emerging as a prominent player in the value-based evaluation of medical technologies. Its stated mission is to provide rigorous, evidence-based assessments of digital health solutions to inform decisions for providers, patients, payers, and investors. The PHTI's evaluation methodology has several strengths, including its focus on clinical benefits, economic impact, user experience, health equity, and privacy and security implications.

However, the PHTI's approach also has limitations. It may not fully consider the organizational settings and implementation methodologies that are critical to the success of medical technologies in real-world value-based settings. By focusing primarily on the technology itself, the PHTI's evaluations may not capture the full potential of medical technologies when integrated into care delivery processes.

II. Three Levels of Value-Based Medical Technology (VBMT) Integration In Healthcare

To understand the shortcomings of the current evaluation methodologies, it is essential to recognize the three levels of technology integration in healthcare:

Point Solutions

Point Solutions involves adding a new technology or service without significantly altering the existing process and workflow. Examples include substituting manual blood pressure cuffs with automated ones or using electronic health records instead of paper-based records. While Point Substitution can offer benefits such as improved efficiency and accuracy, it may not fully capitalize on the potential of the technology to transform care delivery and improve outcomes.

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Workflow Redesign

Workflow Redesign involves modifying existing care processes to integrate new technologies more effectively. This approach recognizes that simply adding a new technology may not be sufficient to achieve its full potential. By redesigning workflows around the capabilities of the technology, healthcare organizations can realize greater benefits in terms of improved patient outcomes and reduced costs. However, implementing Workflow Redesign can be challenging, as it requires significant changes to existing processes and may face resistance from stakeholders. Healthcare organizations might lack the knowledge, experience or resources to implement Workflow Redesign.

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Technology-Optimized Systems

Technology-Optimized Systems represent the most advanced level of technology integration, where care delivery processes are built around the capabilities of the technology from the ground up. This approach has the potential to revolutionize healthcare delivery by enabling entirely new models of care that were not previously possible. Examples include virtual-optimized healthcare providers that primarily deliver care through telemedicine platforms or hospitals designed around robotic surgery systems. However, adopting Technology-Optimized Systems can be difficult, as it requires a significant shift in mindset and may face regulatory and reimbursement challenges.

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III. Shortcomings of the Current VBMT Creation, Deployment & Evaluation Methodologies

The current methodologies have several shortcomings when it comes to achieving the true potential of medical technologies in the context of value-based care:

Lack of consideration for organizational settings and implementation methodologies

The current approach may not adequately consider the organizational settings and implementation methodologies that are critical to the success of medical technologies. Different healthcare organizations have unique cultures, resources, and constraints that can impact the effectiveness of a technology. By focusing primarily on the technology itself, the evaluations may not capture the importance of these contextual factors.

Overemphasis on technology itself rather than its integration into care delivery

The current methodology may overemphasize the technology itself rather than its integration into care delivery processes. While the technical capabilities of a technology are important, they are not the only factors that determine its success in improving patient outcomes and reducing costs. The way a technology is implemented and integrated into existing workflows can be just as critical.

The need for a more comprehensive evaluation framework

To fully assess the potential of medical technologies in the era of value-based care, a more comprehensive evaluation framework is needed. This framework should consider not only the technology itself but also the organizational settings, implementation methodologies, and potential for Workflow Redesign and Technology-Optimized Systems. By taking a more holistic approach, evaluations can provide a more accurate picture of the true potential of medical technologies to transform healthcare delivery.

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IV. The Role of VBMT Companies

As the healthcare industry shifts towards value-based care, medical technology companies must also evolve their approach. VBMT companies have a critical role to play in enabling the successful integration of their technologies into care delivery processes:

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Responsibility to Provide Tools and Services For Higher Levels Of Technology Integration

VBMT companies must go beyond simply providing the technology itself. They have a responsibility to offer tools and services that enable healthcare organizations to achieve higher levels of technology integration, such as Workflow Redesign and Technology-Optimized Systems. This may include providing consulting services, implementation support, and ongoing training and education.

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Importance of Collaborating with Healthcare Organizations to Redesign Workflows And Create Technology-Optimized Systems

VBMT companies must work closely with healthcare organizations to redesign workflows and create Technology-Optimized Systems that fully capitalize on the capabilities of their technologies. This requires a deep understanding of the unique needs and constraints of each healthcare organization and a willingness to collaborate closely with stakeholders at all levels.

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The importance of training and up-skilling of both MedTech internal teams and various stakeholders within partner organizations

To enable the successful integration of medical technologies, VBMT companies must invest in training and up-skilling their own internal teams as well as stakeholders within partner organizations. This may include providing education on value-based care concepts, training on new workflows and processes, and ongoing support to ensure the successful adoption and use of the technology.

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V. Conclusion

As the healthcare industry continues to evolve towards value-based care, the way medical technologies are created, deployed and evaluated must also change. The current standards, while valuable, have limitations in achieving the full potential of medical technologies in this new context. To truly achieve the full potential of medical technologies, a more comprehensive approach is needed that considers not only the technology itself but also the organizational settings, implementation methodologies, and potential for utilizing Workflow Redesign and Technology-Optimized Systems.

VBMT companies have a critical role to play in driving this change. By providing tools and services for higher levels of technology integration, collaborating with healthcare organizations to redesign workflows, and investing in training and up-skilling, these companies can help enable the successful adoption and use of medical technologies in the era of value-based care.

At NewHealthcare Platforms (NHP) and our newly launched Value-Based Care University, we provide comprehensive advisory and educational tools and services to enable the creation and market deployment of VBMT solutions and partnerships. By working closely with healthcare organizations and medical technology companies, NHP is helping to bridge the gap between technology development and successful implementation in value-based settings.

VBMT will play an increasingly important role in creating a new care delivery system that truly improves patient outcomes and reduce costs. By taking a more holistic approach to technology creation, deployment and evaluation, next generation medical device companies can unlock the full potential of medical technologies to transform healthcare delivery in the era of value-based care.

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See you next week,

Sam