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Health care reform set to change manufacturers. (medical device manufacturers)

Health Industry Today

| May 01, 1993 | Rollo, F. David | COPYRIGHT 1993 Business Word, Inc. (Hide copyright information)Copyright

Manufacturers of medical devices and equipment will find themselves under great pressure to understand as much about health care networks, collaborative programs and managed competition as providers will have to know, in order to survive in the new world of health care we are now entering.

Most important, field salespeople will have to be expertly trained to communicate the features and benefits of medical technology not only to hospitals and physicians, as in the past, but to other players participating in networks and purchasing cooperatives as well. These other players, in fact, will become instrumental in influencing decisions about who will purchase devices and equipment, at what price and from what vendors.

Reforms are inevitable

The health care environment of the 1990s and beyond will be shaped by the Clinton administration. There is no question that health care reform will occur; the only question is when it will be implemented and over what period of time.

The model being discussed is that of managed competition, which will provide a standard menu of health care services through a managed care plan purchased by those responsible for health care on a competitive basis from Health Insurance Purchasing Cooperatives (HIPCs) offering the best price and assuring quality outcomes.

The availability of extensive data on outcomes is making it possible for virtually any user of health care services in the U.S. to analyze the cost and clinical outcomes of virtually any provider. Third-party payers can select the most cost-efficient and high-quality providers of care.

More insurance, more devices

One of the major goals of health care reform is to provide insurance through a managed care plan for the …

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