Med tech companies that approach value-based care contracting wisely can earn first-mover advantage

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The frequency and intensity of discussions around the transition from fee-for-service to value-based care continue to increase at the payer and provider level. Little has been said about how


medical technology companies should navigate this coming change. Into that vacuum has crept an abundance of misperceptions. Perhaps the most dangerous one is a belief that simply


structuring the terms of contracts as performance and risk-share guarantees will lead to success. Med tech leaders must understand that value-based care does not equate to performance


guarantees. Although these financially-driven agreements promise hospitals cost savings and reductions in medical expenses, on their own they ignore the spirit and intent of value-based care


— improved outcomes. Contracts that do not account for expanded hospital needs and expectations within value-based care will no longer resonate, leaving med tech companies on the outside


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