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Health Economics Surrounding Medical Devices
In the Fifth blog in this series, Editor Beth Fiedler discusses health economics surrounding medical devices.
“Economic spending on healthcare and demographic changes in usage trends impacts an increasingly global cost-conscious healthcare environment that is focused on optimal patient outcomes,” (Ferguson, 2016, p. 287). Healthcare Economics Outcomes Research (HEOR) can vary across industries but traditional health economics entails “the study of how scarce resources are allocated among alternative uses for the care of sickness and the promotion, maintenance and improvement of health, including the study of how healthcare and health-related services, their costs and benefits, and health itself are distributed among individuals and groups in society” (World Bank, 2016, para 1).
But not all healthcare economics focus on the same strategies. Medical device companies often use health economics to demonstrate the value of new products by increasing capacity in two general areas of concern—1) reimbursement, and 2) market access (Ferguson, 2016).
Health economics evidence may be utilized in a variety of scenarios including justification for a high average sales price, product differentiation, global market outside the US requiring a formal economic evaluation, and the products’ clinical utility (Ferguson, 2016). Establishing value in healthcare is a growing area of concern. For healthcare product innovators and leading medical device manufacturers in the US “the challenge of exacting the highest value and best clinical outcomes from per patient spending that is expected to increase by approximately two-thirds in the next decade,” (Ferguson, 2016, p. 287). All the more reason to become familiar with the value assessment process, clinical outcomes and data, types of economic evaluation, and dissemination strategies and tools for economic evidence. This text will provide valuable hands on information ranging from the senior medical device executive to the entry level reimbursement and market access professional.
For a limited time you can read chapter 16 Health Economics and Outcomes Research and Evidence Strategies below:
Want to read more?
- Covers compliance with FDA and CE regulations, plus EU directives for service and maintenance of medical devices
- Provides operational and clinical practice recommendations in regard to regulatory changes for risk management
- Discusses best practices for equipment procurement and maintenance
- Provides guidance on dealing with the challenge of medical records management and compliance with patient confidentiality using information from medical devices
You can save up to 30% on Managing Medical Devices within a Regulatory Framework when you order via the Elsevier store. Enter the code STC215 at the checkout!
Ferguson M. (2014). Medical devices are different to pharmaceuticals in the health technology assessment process. Journal Comparative Effectiveness Research, 3(3): 217-219.
Ferguson, M., Kim, M., Patel, P., and Stockwell B. (2014). The impact of medical device use on hospital costs. DOI: http://dx.doi.org/10.1016/j.jval.2014.03.015 Value in Health, 17(3): A2.
Ferguson, M. (2016). Health Economics Outcomes Research and Evidence Strategies. In B.A. Fiedler (Ed.), Managing Medical Devices within a Regulatory Framework, in press. Elsevier. (Visit store.elsevier.com/9780128041796).
World Bank Health System Glossary of Terms (2016). Accessed February 2, 2016 from http://www.worldbank.org/hsr/class/module1/glossary.htm#h
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