The global healthcare industry faces two critical challenges: large variation in patient outcomes and continually increasing costs. Value-based health care can address both, but hospitals and health systems must factor value into their procurement decisions for medical products.
HEALTH CARE PROCUREMENT STILL FOCUSES ON PURCHASE PRICE
Most providers purchase medical products on the basis of the up-front purchase price, which doesn't address the needs of patients and clouds the true cost of care.
A NEW DIRECTIVE EMPHASIZES VALUE
The European Parliament's new directive on public procurement encourages a more holistic perspective that factors in product quality and total life-cycle costs.
A NEW FRAMEWORK CAN LEAD TO SMARTER PROCUREMENT
BCG and MedTech Europe have developed a new value-based procurement framework that is aligned with the new EU directive. It places at its core the simple value-based healthcare equation of patient outcomes divided by the costs of achieving these outcomes. It will help break down organizational silos within health care institutions and spur innovation among medtech companies.