Medical technology and other suppliers to healthcare providers periodically face price competition. This can be due to an aggressive competitor, changes in the customers’ business, reimbursement cuts, GPOs driving competition, or products reaching a mature stage of the life cycle. Up until now, med-tech companies generally haven’t been impacted by significant changes in the nature of the delivery of healthcare.

The blog post below by Brian Klepper at costandcare.com provides a great example of how the provider market is being disrupted in the U.S. by new business models and contracting approaches.  This should have a direct impact on medical technology companies’ business model and contracting approaches with customers.  We are likely to see more disruptive models in the future as a solution to the cost and quality issues in the U.S. healthcare system.  Great ready!

Are You Ready for Intense Price Competition?.