Article preview from Medtech Insight - May 2008
BONUS: Click here for immediate download of this full article from Medtech Insight
The rapid introduction of new medical technologies has created a wealth of tools and devices designed to improve patient care. But hospitals must decide which technologies from this dizzying array are worth purchasing based on their overall value to the organization. Find out why more and more hospitals are turning to outside sources to help them determine where to spend their dollars.
Health Care Trends: A New Way for Hospitals to Evaluate Technology
by Robert Neil
The rapid development and introduction of new medical technologies in the health care industry has created a wealth of tools and devices designed to improve patient care. However, as much as the impressive display of new products and product improvements is a source of pride to the manufacturing community, the large number of complex items presents an interesting problem for hospitals. Providers must evaluate and prioritize which technologies—including many that come with large price tags—should be purchased based on overall value. As a result of the complicated nature of new products, more and more hospitals are turning to outside sources to help determine which technologies are worth purchasing, and that development can create barriers as well as opportunities for manufacturers.
The idea that the hospital, or even the hospital's clinical staff, is not the sole decision maker when it comes to choosing which product to buy is not a new one. Certainly, group purchasing organizations (GPOs) have had an influence on what items hospitals put under contract for a number of years. However, the growing trend to use outside help to evaluate new technology represents a more methodical approach than GPO contracting. The technique is designed to cut through some of the marketing claims accompanying new products and ultimately to determine if the product actually lives up to the manufacturer's hype. The process means manufacturers must prove their products' actually bring value to hospitals, similar to the way value is proven to obtain reimbursement from the Centers for Medicare and Medicaid Services (CMS) and private insurers.
Outside Sources Offer Services
There are several places hospitals can go to receive help in this area, including traditional sources such as consulting groups and GPOs as well as operations that specialize in independent evaluation like Hayes Inc., MD Buyline, and the ECRI Institute. (See Exhibit 1.) The issue of technology evaluation has become such a hot topic that the Association for Healthcare Resource & Materials Management (AHRMM), an arm of the American Hospital Association (AHA), recently teamed with Hayes to present a special webinar on the subject.
BONUS: Click here for immediate download of this full article from Medtech Insight
