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Healthcare changes mean better devices needed for less money

Cost reductions are coming to healthcare, as any casual observer of the changes in the U.S. and Europe can see. Aging populations, in many countries supported by fewer people in the workforce, are forcing governments to re-think how much they can afford to spend to keep their citizens healthy.

For plastics processors serving the medical device market, the changes will put a huge premium on those able to keep costs low. That is the gist of a new analysis, Impact of Healthcare Reforms on the Medical Technology Industry, prepared by market research company Frost & Sullivan (London).

The report's authors note that most changes to current healthcare laws will be phased over a period of time, so that change will come gradually rather than abruptly, allowing medical technology vendors time to adapt.

"From recent reforms it is clear that the intent of most countries on a global level is to curb healthcare expenditure," states Frost & Sullivan research analyst Simone Carron-Peters. "For manufacturers in Europe and the U.S., an emerging challenge is to introduce technologies that can do more for the same price or less, rather than to develop new capabilities that add cost to the delivery of healthcare."

Healthcare reforms threaten to shift the financial burden to healthcare providers. There is likely to be greater demand for quality published outcomes, resulting in a substantial increase in comparative effectiveness studies between different technologies and diagnostics.

"Vendors would need to develop innovative products and execute thoughtful strategies," concludes Carron-Peters. "The aim of such an approach would be to support not only market entry but also ensure sustainable success within the marketplace."

TAGS: Medical
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