Every year ISPOR publishes a Top 10 of Health Economics and Outcomes Research (HEOR) Trends. They did so again early January.
ISPOR (International Society for Pharmacoeconomics and Outcomes Research) is an international organization dedicated to improving healthcare decision making. While the organization’s name explicitly refers to Pharma, they also cover Medical Devices
I wanted to go over some of these trends as I think they should inform market entry decisions.
Health Economic and Outcomes Research
Understanding the demand for evidence and the assessment of Medical Devices is paramount to success. They earlier the challenges are understood, the better. A company that addresses these issues too late in the lifecycle of the product is bound to face major obstacles, many of which could have been avoided had these issues been addressed in a timely manner.
The Top 10
Below find a short enumeration of the Top 10 2020 HEOR Trends as reported by ISPOR. I will investigate just a few of these trends in more detail below:
- Real World Evidence: RWE in Healthcare Decision Making
- Drug Pricing: Pressure Increases to Constrain the Pricing of Medicines
- Novel Curative Therapies: Affordability Impacts Access for patients
- Overall Healthcare Spending: Growth Spending Exceeds that of GDP
- Universal Health Coverage: Healthcare Coverage, Access and Equity
- Value Based Alternative Payment Models: Determining the True Value of Innovative therapies
- Price Transparency for Healthcare products and Services: Lack of Clarity about Prices Impacts Healthcare Budgets and Patients
- Digital Technologies: Digital in Healthcare Delivery and Outcomes Assessment
- Aging Population: The impact of Aging on Healthcare Delivery and Costs
- Precision Medicine: A Growing Field Fueled by Data.
Costs are Rising…
It is clear that cost and pricing concerns will be around for a long time to come, and it is to be expected that the pressure will continue to build. It is inconceivable that the price of healthcare can continue to rise at a rate higher than GDP growth and that this could be sustained for an indefinite time.
… and Outcomes are Improving
Several trends speak to ever more specific solutions, for ever smaller groups of patients (orphan diseases, precision medicine). The cost for these therapies is understandably very high. Question becomes where will society draw the line?
Plotting an Evidence-Based Strategy
It is imperative that companies in the healthcare market (including medical device companies) constantly evaluate their go to market Strategy
It is obvious that companies with a strong value-based care story backed with evidence will be better positioned for survival. Furthermore, if the evidence is supported by Real World Data, the argument to switch to your technology will be even more credible.
The issue of Health Economics and Outcomes Research has to be tackled throughout the lifecycle of the product. It can not be bolted on as an additional step after the product has been designed, worse yet, after it has received regulatory approval. Often, design and regulatory pathways impact Health economics and outcomes. Chances are that if these three different strategies are not carefully balanced a company may have boxed itself into a less than optimum situation, missing out on more profitable opportunities for its products.
Obtaining early insight into the different medical device reimbursement pathways is part of the foundation for future sales growth:
- Start planning while still in the design phase
- Consider the perspectives of the patient, the provider and the payor. You product must be of interest to at least two of these stakeholders.
- Remember that Health Economics is partly driven by the Health Care system in which your device is being used. As a result, different countries, with different health care systems may be more or less responsive to arguments
- Plan to collect the evidence you will need to convince the multiple stakeholders.
GB5D brings together a team of regulatory, health economics and market access specialists with experience in your specific therapeutic area. The team will help you navigate and streamline a set of pathways to optimize your impact in the market.