REDWOOD CITY, CA -- (Marketwired) -- 12/09/15 --
Model N, Inc. (NYSE: MODN), the leading provider of cloud-based Revenue Management solutions to life science, technology and manufacturing companies, released the results of a study focused on the buying trends reshaping the MedTech industry. The study conducted jointly by Model N and Value Vantage Partners'Chris Provines, author of three books including Strategic Pricing for Medical Technologies and Healthcare Value Selling, surveyed global MedTech companies from all segments across all corporate functions on the evolving market and how companies can stay competitive through the next few years of change.
"Buying behavior in MedTech continues to rapidly evolve and many more changes will be taking place in the next decade alone," said Chris Provines, CEO of Value Vantage Partners. "The six key buyer trends noted in this survey serve as a guide to those in the MedTech industry on what should be top of mind and also highlights what every MedTech company is concerned about along with actions to consider."
The six key buying trends for MedTech as noted in the survey include:
- Use of price and value transparency to drive costs-out and value-in
- Increased use of generic supplies or "good enough" solutions
- Unbundling of supplier solutions
- Growth in customer self-contracting and regional buying
- Outcomes and performance-based contracting
- Growth in device formularies
In addition, findings estimated that the global spend for medical devices and diagnostics will approach $500B in the next 5 years. With this amount of spend and the pressure to reduce costs, many start-ups, new competitors and existing players, such as group purchasing organizations, are working to help hospitals and other providers take costs-out and bring value-in.
"There are significant pressures on MedTech companies with more sophisticated buyers and an evolving supply ecosystem," said Zack Rinat, Founder, Chairman and CEO of Model N. "It is our aim to assist companies transition and prioritize the changes needed to make to stay ahead of these trends without sacrificing revenue or growth."
Additional findings from the survey include:
- 40 percent of respondents are still running quoting, deal analytics and contract compliance on spreadsheets
- 77 percent of survey respondents believe price and value transparencies will have significant impact on price erosion and customer relationships
- More than 1/3 expect regional buying groups to increase significantly in the next 10 years emphasizing the need for automated systems
For additional survey findings and best practices, please visit http://pages.modeln.com/2015_MedTech_Survey_6_Key_Buyer_Trends.html
About Christopher Provines
Christopher Provines has over twenty-five years of global healthcare experience. He began his career in hospital finance and reimbursement. After graduate school, he joined Johnson & Johnson and later moved to Siemens Healthcare. His roles have included vice-president-level positions at both companies. He has extensive global experience in a variety of health outcomes, finance, procurement, commercial excellence, key account management, and business improvement. He is a world-leading thought leader in selling, defending, and capturing value in healthcare. Chris has written many papers, articles, book chapters, and books. He is on the board of advisors for the Professional Pricing Society and is an award-winning adjunct professor at Rutgers University, where he teaches in the Supply Chain Management and Marketing Sciences Department. His research interests include the transformation of healthcare supply chains and the implications for suppliers. Chris earned his MBA from Rutgers University.
About Model N
Model N is the leader in Revenue Management Cloud solutions for life science, technology and manufacturing companies. Driving mission critical business processes such as configure, price and quote (CPQ), contract management, rebates and regulatory compliance, Model N Cloud solutions transform the revenue lifecycle from a series of disjointed operations into a strategic end-to-end process. With deep industry expertise, Model N supports the unique business needs of the world's leading brands in life science, technology and manufacturing companies across more than 100 countries.
Model N is a trusted partner to some of the world's largest brands, including Johnson & Johnson, AstraZeneca, Boston Scientific, Novartis, Ortho Clinical Diagnostics, Atmel, Fairchild and Marvell. Model N trades on the New York Stock Exchange under the symbol MODN.
Model N® is the registered trademark of Model N, Inc. Any other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.
Media Contact:
Diandra Weldon
Model N
650-610-4667
Dweldon@modeln.com
Source: Model N, Inc.