We believe that the MedTech industry has hit an inflection point and many of the trends are accelerating--providing critical implications for MedTech suppliers.
Boston, MA (PRWEB) April 30, 2015
Hospital administrators indicate for the first time that they are seeking external partners more so than using internal resources to meet high-priority needs, according L.E.K. Consulting’s 2015 Strategic Hospital Priorities Study. The study also affirmed a continuation of some trends: hospital systems are consolidating, integrating, accepting accountability, centralizing supply chains and standardizing practices to improve margins and improve care delivery.
“We believe that the MedTech industry has hit an inflection point and many of the trends are accelerating — providing critical implications for MedTech suppliers,” said Jonas Funk, managing director in L.E.K.’s global MedTech practice. “This year’s study reveals an increasing openness and desire by hospital executives for more partnerships, and increasingly, shared risk programs from their suppliers. In light of this shifting view, we believe that MedTechs need to respond by making strategic changes in their relationships with providers.”
With increasing consolidation in the provider marketplace and emphasis on standardization and centralization of decision making, hospitals are continuing to shift to “economic buyers,” like administrators and department heads whose focus is more on the economic benefits in purchasing decisions.
Although many hospitals from earlier L.E.K. studies indicated an interest in working with outside suppliers to address their core needs, the percentage of respondents who are now “working with outside providers to address the most pressing needs” continued to grow, in fact reaching half of respondents for the first time in 2015.
“The providers are interested in a broader range of services from MedTechs now — not just education/training and equipment services, but clinical IT, analytics and operations management now too,” said L.E.K. Managing Director Lucas Pain. “Based on our experience with MedTechs, L.E.K. has outlined six strategic areas of focus that will help drive their success in a rapidly shifting market environment.”
MedTech Suppliers are encouraged to alter their strategy by focusing on:
1. Provider evolution
2. Customer segmentation
3. Service/solution expansion
4. Optimizing commercial models
5. Value articulation
6. M&A and partnerships
Hospital administrators’ perceived value of potential MedTech services has risen since 2014 across every category surveyed with the highest perceived value in education, training and compliance.
Additional insights and results can be found in the 2015 L.E.K. Strategic Hospital Priorities Study: Hitting an Inflection Point for Hospital Suppliers and MedTechs by Jonas Funk, Bob Lavoie, Lucas Pain and Monish Rajpal, managing directors in L.E.K.’s MedTech practice.
About L.E.K. Consulting
L.E.K. Consulting is a global management consulting firm that uses deep industry expertise and analytical rigor to help clients solve their most critical business problems. Founded more than 30 years ago, L.E.K. employs more than 1,000 professionals in 21 offices across the Americas, Asia-Pacific and Europe. L.E.K. advises and supports global companies that are leaders in their industries – including the largest private and public sector organizations, private equity firms and emerging entrepreneurial businesses. L.E.K. helps business leaders consistently make better decisions, deliver improved business performance and create greater shareholder returns. For more information, go to http://www.lek.com.