Reversing Medtech Price Erosion

Posted by Brian Chapman on September 5, 2019

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.


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What’s Driving Medtech Price Erosion?

Posted by Brian Chapman on September 3, 2019

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.


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Medtech Feeling Stuck? Here Are Three ‘No Regret’ Moves to Ensure Your Sustainable Success

Posted by Sudhanshu Bhatnagar on March 21, 2018

In recent conversations with clients, we’ve been hearing a lot of the same concerns from medtech’s commercial leaders, who feel stymied by conflicting priorities. They see the healthcare ecosystem changing around them, sweeping up some of their customers along the way. They want to make investments to start adapting to these changes, and to future-proof their organizations for the inevitable changes to come, yet they’re also facing significant revenue and SG&A pressures today. These executives are telling us that they’re feeling forced to "have a foot in both worlds," supporting business as usual and addressing today’s needs while planning and preparing for medtech’s evolution tomorrow. As one medtech leader reflected, “Are we focusing too much on transforming for this unclear, fuzzy future state, and leaving money on the table today?”


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Three Barriers to Optimizing Your Pricing and Contracting Practices

Posted by Carlos Garmendia on May 4, 2017

The power of optimized pricing and contracting practices can be distilled down into a simple formula: Selling more at a higher net price while reducing the cost of operations will result in sustainable profit growth. Yet many medtech companies struggle to find effective ways to aggregate, assess and analyze pricing and contracting data, and to generate relevant insights to maximize sales for existing contracts, optimize price offers for new contracts, and streamline all supporting processes. Put simply, they’re leaving money on the table.


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