This blog post is the second in a two-part series about what’s behind price erosion in medtech and how to reverse it.
Medtech is dealing with forces that have been eroding profitability. As companies look to repair this price erosion, they’ll need to adopt a more comprehensive approach to pricing governance and execution, which includes leveraging data and analytics to improve their pricing and contracting strategies.
This blog post is the first in a two-part series about what’s behind price erosion in medtech and how to reverse it.
Medtech leaders today face several headwinds that are threatening to erode price and profitability. Some of these forces are external—like the professionalization of purchasing, provider consolidation, a changing buying center and increased focus on product value—but others are internal habits and mindsets that are long overdue for a change. In our next post, we’ll discuss how medtech leaders have begun to address these challenges, but before we do, let’s define their root causes.