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Abstract

Innovation is critical to the growth of the medical devices and diagnostics industry (MDD). The industry invests substantially in innovation and has brought to market some truly significant new technologies to help improve human health care. At the same time the industry invests in innovation, the environment is getting more challenging. Payers and hospitals are increasingly driving to value-based purchasing and evidence needs are increasing. These stakeholders are looking for the best value for their purchasing dollars. Yet, many MDD companies struggle to defend their value because of poor value-based pricing practices. This article will explore the key organization barriers in the way of implementing value pricing and what MDD companies can do to improve.

Keywords

pricing value innovation new products strategy medical devices

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Overcoming Organizational Barriers to Implementing Value-Based Pricing in the Medical Devices & Diagnostics Industry

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