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How to Sell a New Medical Device to Value Analysis Committee

Medical Device Value Analysis Committee

By James CorbyPublished 4 years ago 3 min read
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Medical Device to Value Analysis

In the traditional approach, a medical device company’s sales team developed a clinical champion who would present a new technology to their colleagues, might initiate a clinical trial to compare the new technology to the technology of record, and would also leverage the champion’s relationships with the medical facility leadership. It was the sales team’s responsibility to demonstrate the advantages of the technology to the purchasing stakeholders.

Value Analysis Committee

In the current cost-effective era, healthcare facilities, group purchasing organizations and other buying groups have initiated medical device value analysis committees to determine the comparative value of the medical device under consideration for purchase. The committee determines whether the device will be adopted or not.

The committee consists of members from the facility. The committee includes:

  • Clinicians
  • Nursing staff members
  • Facility purchasing
  • Administrators
  • Supply chain management

A medical device value analysis committee’s structure and size vary from facility to facility.

The Affordable Healthcare Act and other healthcare reforms and changes in reimbursements have driven most all healthcare facilities to have the medical device value analysis committees. The competition in the industry provides more offerings to the committee. This helps healthcare settings achieve their goal – cost reduction. The committee also ensures that the staff is using the purchased medical devices to reduce costs. It also encourages bidding from competitors. Unlike the traditional approach, adopting new medical devices is now a formal process. The process includes the completion of forms that include an explanation of medical device benefits, clinical comparative data, cost data

The committee does not focus on reducing costs only. The following are the other responsibilities of the committee:

  • Improve patient safety
  • Improve transparency in sales
  • Improve product acquisition impartiality

From Medical device market research and analysis to marketing after the approval, a medical device goes through several development stages. The device generated revenue when it is stocked by healthcare facilities.

Addressing the Value Analysis Committee

It begins with understanding the value analysis process. It consists of the following steps:

  • Data Gathering
  • Presentation of the required data to the value analysis review board
  • Any requested comparative testing
  • Initial Negotiation
  • Final Approval/Rejection

Data Gathering

In this step, the committee attempts to gather as much information as about the device. It reviews white papers, case studies, clinical trial results and other documents. Some committees also get opinions from third-party evaluators. The committee also assesses the benefits the medical device will offer to the hospital. It compares the new device with the device already in use.

Initial Negotiation

The committee outlines its desires and requests proposals. It checks the list of existing vendors and sales representatives. The committee approaches those companies as well. This is followed by initial negotiation.

Requested comparative testing

The committee outlines a comparative test process to evaluate the device. A committee member oversees the trial and shares results. The member highlights the device’s features and benefits if the results are positive.

Final Approval/Rejection

Committee members vote to approve or reject a device. In some hospitals, the final decision is taken by hospital executives.

Interacting With a Value Analysis Committee

Medical device companies use different strategies to address committees, make an initial pitch or fill out paperwork.

The company can identify the committee’s desires and expectations to provide specific information. Here are some examples.

  • Is this device a replacement for a device already in use?
  • Is it a safe device?
  • What are the materials used?
  • How does the device improve healthcare outcomes?
  • How much does it cost?

A medical device company can secure adoption by understanding the committee’s role or function. While doing research about the committee, the company should also attempt to understand the role or function of individual team members from each department. Physicians and nurses use the medical device. Administrators play a supervisory role. The company should also understand how the value analysis committee reviews other products.

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