13/08/2024 | Press release | Archived content
Rapid industry consolidation is a challenge that healthcare suppliers and manufacturers have contended with for years. But industry-wide value-based care initiatives and cost-cutting measures have compounded this issue more recently, making it increasingly difficult for suppliers like medical device companies to sell into the healthcare space.
If your medical device company is struggling amid accelerating consolidation and care model evolution, you're not alone. Definitive Healthcare hosted a panel discussion on medical device sales strategies and buyer perspectives and found that industry leaders face many of the same challenges.
Provider and medical device experts from Massachusetts General Hospital, Styker Instruments, Applied Medical, and Exactech discussed the obstacles impacting their go-to-market strategies, how they're evolving to fit the needs of a changing industry, and how they're leveraging physician insights to strengthen their sales approach. Here are some of the top takeaways from the panel.
All three supplier panelists agreed that industry consolidation poses a major challenge for medical device manufacturers looking to sell into the market.
Last year, Definitive Healthcare tracked a total of 151 mergers and acquisitions among hospitals and IDNs. Consolidation of this magnitude creates larger health systems, thus shifting the buying decision from the physician to a centralized supply area or administrative body. This can make it more difficult for suppliers to identify and access the key decision-makers.
Some panelists acknowledged that this consolidation has impacted the supplier side as well. Large medical device manufacturers have begun to acquire other, smaller companies. This not only increases competition among suppliers, but also creates new challenges for small, specialized suppliers with less market influence.
According to one panelist, however, this obstacle presents a unique growth opportunity. Natali Lenning of Applied Medical says that understanding the market consolidation helped her company position its field implementation and sales teams to better address changing customer needs and align their organization accordingly.
Dr. Bart Lubberts of Massachusetts General Hospital provided invaluable insight into the buyer's perspective and how best to position your sales pitch for success. "Most important for suppliers in this industry," he says, "is getting in touch with the right key opinion leader."
Clinicians are very busy. It can be difficult to connect with the right clinician, and, even if you do, they probably have limited time to give to you. So how can you make the most of an engagement?
As someone who interacts both with industry representatives and providers, Dr. Lubberts suggests connecting first with an intermediary like him to learn more about a given clinician's expertise, and whether they might be willing to provide their insight or opinion on a medical device. Once you've identified the right contact, it's okay to reach out directly to the clinician.
As Natasa Dugandzic explains, the field sales team at Exactech follows these first steps when identifying the right key opinion leader:
Marrying this information together, she says, allows the sales team to connect those clinician priorities with the priorities and challenges of their respective health system, enabling a more meaningful sales conversation.
In preparing a value proposition, it's important to remember that a medical device must provide value for the patients, the payors, and the providers. "But the idea of value," explains Amy Pyke of Stryker Instruments, "isn't simply limited to cost versus utility."
Pyke says that patient outcome and experience should be just as high a priority in medical device development as product quality and cost. But how do you balance company needs with customer needs? With collaboration, of course.
At Stryker, for instance, Pyke says that sales and product development teams are beginning to collaborate with customers to understand the role that their medical device can play in assisting along the care continuum. This level of customer engagement not only supports product improvement but also helps to reaffirm the product's value.
Along those same lines, Lenning says that tailoring their medical device message down to the individual customer-including what the facility needs are-helps Applied Medical facilitate stronger sales conversations and shorten the selling cycle.
In familiarizing themselves with each new facility, Lenning explains, Applied Medical relies on a few key metrics. These include:
Payor mix metrics can reveal details about the facility's patient population-namely, whether the facility treats high volumes of either Medicare or Medicaid patients. Quality metrics are other key data points for medical device companies to track. If, for instance, a hospital is performing poorly in certain quality metrics, this might reveal an opportunity to improve care quality in one or more specific areas.
Interested in strengthening your medical device sales strategy? Take a look at our blog about physician impact on medical device sales to read more about leveraging physician insights, customizing your value proposition, and accessing the data that can help you identify the right key opinion leaders.
If you're in the market for healthcare commercial intelligence on the facilities, providers, payors, and mergers and acquisitions shaping the healthcare landscape, the Definitive Healthcare platform can deliver the insights you're looking for. Sign up for a free trial today and start building your data-driven strategy.