Xconomy: Is This the End of Premium Pricing in Drug and Device Innovation?

▤ Summary

Opinion (Page 2 of 2) product innovation in many other technology industries, especially when the market place is crowded with competitors.As risk gets shifted to provider systems, the need to show cost-effectiveness of products becomes a core requirement in order to get paid for and adopted.Classically, the pharma and medical device industry employed direct-to-physician sales forces to distribute innovation, and cost was rarely a factor when the doctor was the buyer.However, purchasing decisions are now getting pushed up to the enterprise level, and in a world of new payment models and changing reimbursement values, cost and quality of innovation are becoming paramount.The $4.4 billion deal earlier this year represents one of the biggest bets so far that the healthcare system is moving toward large, integrated medical providers that can manage patients under a budget.

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