Value Analysis Does Not Hate You… Just Your New Product Request Submission

by Mark Copeland

“There are big benefits to thinking of value analysis committee less like the enemy and more like me when I get a brochure in the mail.”

I hear an underlying current of frustration and anger from vendor reps across the country all the time.

“Value analysis committees are trying to keep new products out of hospitals.”

“Value analysis committees just reject everything unless it’s cheaper.”

“Value analysis committees hate vendor reps.”

Hmmmm, value analysis committees HATE vendor reps?

Ah yes, I call this attitude the “Aluminum Foil Hat” theory of the “Why can’t I get my new product requests approved in health systems?” line of questioning. I hear it constantly.

My colleagues and friends in medical device sales and marketing, please allow me to pop the “nobody likes us” balloon: VACs do not hate you. VACs do not even know who you are.

VACs do not hate you. VACs do not care about you at all.

But VACs do hate your new product requests.

Because value analysis committees are not searching for your product. I know it may be counter-intuitive, but VACs are constantly searching the web, Googling “cool new med tech” to see what’s out in the great big medical device world.

Nope, value analysis committees are looking to solve the health system’s PROBLEMS. Or align with the health system’s STRATEGIES. Or at least improve patient care AND save some money. Or time. Or reduce staffing requirements. They aren’t looking for YOUR product. They are looking to improve the health system’s outcomes (patient care) and bottom line (financial), while strengthening the health system’s position versus competition (strategy).

Yes, value analysis committees could make the new product request process a little more transparent…to their clinical teams. More clarity would certainly be appreciated by doctors and nurses.

But VACs do not owe the medical device industry anything. Ask yourself this: Do YOU owe the cable company an explanation as to why you will not switch to them? They send me brochures all the time by snail mail. These brochures are just lousy marketing pitches talking about their product, without understanding if I am happy, frustrated, or even interested in learning more. I pay no attention to the brochures and pitch them on the way in from the mailbox…and I’ll bet you do too.

Certainly, I feel no obligation to explain to Comcast my decision-making algorithm. I feel no obligation to Comcast at all. Nor do you, I am willing to wager.

So why do we expect a VAC to feel like they owe US any explanation, much less “like us?”

I read 3-5 VAC packs a week, submitted by medical device vendors. Most are just advertisements telling me how great the product is and how to buy. These VAC packs mirror the brochures I receive from Comcast. Lots of words and promises…no context and no idea whether I even need Comcast.

Shoot, I am trying to cut the cord, not use a different cable company at a cheap introductory price so that I can be locked into a long-term, high-priced contract with automatic price increases built in. And have their service team traipsing through my house? No, I’m good, thank you very much….

But we in the medical device industry insist on asking clinical champions to take valuable time and risk political capital to get OUR PRODUCT approved in the VAC’s hospital. There’s NOTHING about the value to the health system. Just a bunch of words and phrases in Latin telling me about some clinical “problem” that VAC do not even know exists.

If I am on the VAC, there is a good chance I’m a businessperson, supply chain leader, or healthcare administrator. I am not a doctor or nurse. I would not know cardiac aFib from a fibular strut. I need context and an explanation from a requesting doctor or nurse that shows me WHY we are even looking for something new, HOW much it costs, WHAT we hope to accomplish if we buy it, and WHO will use it if we do end up approving the new product.

My advice to every rep, product manager, VP of Sales, and founder with whom I consult is to describe:

• The problem the doctor or nurse has, as well as…
• The problem the hospital, ASC, or health system has.
• The estimated cost of what they are currently doing.
• The cost of the solution (your product) the doctor or nurse has identified.
• The hoped-for outcomes they should expect.

If you do these five things, your VAC pack will now be talking about the benefits to the REAL customer (the ASC, hospital, or health system).

If your champion (the requested doctor or nurse) does the same thing, your approval rates will skyrocket. Sure, you may have to coach your champion to understand the larger picture of the needs of the ASC/hospital/health system, but once you do, your champion will be more empowered and enthusiastic to support a new product request.

As you get better and more experienced at having new product requests submitted as “new solutions to current problems,” you’ll find your products are more and more welcome in health systems.

You might even get a hug from a value analysis committee member!

Nah, just kidding. There are no hugs in value analysis.

But there are big wins and big benefits to thinking of the value analysis committee less like “the enemy” and more like me when I get a cable company brochure in the mail.

I don’t hate the cable company. I just see no need to bring them into my house.

VACs do not hate you or your company. They just don’t see a need to bring your product into their house.

Article By:

Mark Copeland, Vice President, Sales,? 3T Medical Systems, Inc.

Mark Copeland is a 28-year healthcare sales professional with the last 20 spent in startup medical device companies.

His company, 3T Medical Systems Inc, manufactures and sells innovative medical devices to health systems globally, and Mark teaches companies how to present their new product requests in a way that meets the value analysis requirements.

Contact Mark at?[email protected]?for more information, or visit?ValueAnalysisExpert.com.

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