June 29, 2009
Strategic investment and product development considerations need to incorporate both reimbursement and patient payment options.how to think about the consumer market in reimbursement strategies. If anyone wants to take a look, you can find it at this link: With the rise of consumer control in healthcare expenditures, many medical technology companies have focused their business strategies around out-of-pocket spending as opposed to third-party reimbursement. Through case studies, we identified three scenarios surrounding consumer-targeted business models. These include: targeting consumer payment for some indications of a product while getting covered by insurers for other indications; targeting consumers solely because of belief that coverage will not be granted; and attempting to get coverage, but forced to pursue out-of-pocket spending after failing. As a result of the recession, companies that rely only on consumers for revenue are threatened, but this does not mean that targeting this market is not a valid choice. Thinking strategically about how your product will be viewed by insurers and consumers and how to market it to these two groups is an extremely important business decision.
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