ASCs & Discounts on Devices
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/ Transparency, Medical Devices, Business Intelligence, Software, ASCs

ASCs & Discounts on Devices

Bain & Company's research suggests that surgeons at ASCs are more likely to change medical devices than their peers within hospital settings.

As the percentage of surgical procedures performed at ambulatory surgery centers (ASCs) increases, medical technology companies are reevaluating current operating procedures. Bain's research shows the potential for a 6-7% cumulative average growth rate of procedures at ASC's through 2021, resulting in a 20% rise in both orthopedic and spine ASC procedures by the mid-2020s. Cardiology is expected to grow even faster with the potential for a 25% increase in procedures moving from hospitals to ASCs in the same timeframe.

Compared with hospital outpatient departments (HODs), procedures performed at ASCs are typically 35-50% lower in cost, saving US healthcare an estimated $40 billion per year. ASCs are performing over half of all outpatient surgeries totaling approximately 23 million procedures and $35 billion in revenue per year.

Why is this important for medical technology companies and device manufacturers?

The cost associated with sales, distribution, and man-power at ASCs is often greater and more complex. Vastly improved technology and diagnostic abilities are making procedures - once solely limited to inpatient departments - available in the ASC setting. As Medicare policy shifts and CMS continues to approve more ASC procedures, physicians desire to work outside of hospitals. In addition, convenience and lower copayments for patients receiving treatment at ASCs are driving high consumer demand. ASC ownership (including physician owners) are looking for ways to capitalize on the current demand while combating high costs and expenses traditionally associated with performing procedures.

Less than 45% of Bain surveyed physicians within hospitals believe they are the primary drivers of purchasing and medical device decision-making. In the ASC setting, 70% of physicians believe they are the primary decision maker or have direct influence over what products are purchased and used in surgery. Accordingly, ASC physicians are more willing to try non-traditional service models (such as 24-hour remote service) and consider alternative devices to achieve purchasing savings.

In this infographic, Bain shows the relative likelihood of acceptance for a 15% reduction in device cost. Over 60% of physicians said they would accept a "similar device from a different manufacturer" for that 15% reduction in price. Over 50% even said they would accept a "previous generation device from the same manufacturer." The changing healthcare landscape has increased ASC potential, begun adding transparency to medical device pricing and purchasing - and Relatable Healthcare is here to help.

At Relatable Healthcare, we have taken a data-centric approach to medical device purchasing, education, and awareness within both surgery centers and hospitals. The Relatable platform breaks down each medical device into verified data points so that surgeons, nurses, administrators, and supply purchasers are all able to quickly search for, identify, and compare medical devices. Relatable offers immense value to facilities through precise recommendations of similar devices and implants, helping lower the cost of surgery to both the facility and patients. As the Bain research shows, physicians (especially at ASCs) want to reduce costs without compromising on device and implant features. Relatable offers the first platform to compare those features and prices so that your surgery center can provide the best devices at the best price.

If you are interested in reading more about Bain & Company's research, here are two helpful links:

Ambulatory Surgery Center Growth Accelerates: Is Medtech Ready?
Medtech’s Dilemma: Ambulatory Surgery Centers Want a Discount

If you are interested in learning more about all that Relatable Healthcare is doing to improve transparency and healthcare costs, visit our website or reach out through the button below. We would love to chat!

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