Value-based purchasing of medical devices.

Area of Science:

• Health care innovation
• Medical device technology assessment
• Hospital administration

Background:

• The US healthcare system faces challenges with new medical device adoption.
• Ensuring new technologies provide value to patient care is crucial.
• A physician-engaged process can optimize cost and review of physician preference items.

Purpose of the Study:

• To describe the implementation and outcomes of a value-based medical device purchasing process.
• To achieve cost reduction and product stabilization at an academic medical center.

Main Methods:

• Implemented a physician-driven committee for technology assessment.
• Standardized introduction/consolidation of new supplies and devices.
• Utilized evidence-based, clinically sound, and financially responsible methods.

Main Results:

• Decreased costs of physician preference items by 11% to 26% across service lines.
• Achieved annual savings exceeding $8 million.
• Provided access to new products while standardizing some existing ones.

Conclusions:

• Facility-based technology assessment committees can decrease hospital costs for implants.
• Critical evaluation of new technology by such committees can standardize product lines.
• Physician engagement is key to successful value-based purchasing.