Medical Device Design Meets Value Analysis

I had the privilege of interviewing the Value Analysis Whisperer himself, Mark Copeland, who cracked open the black box of Value Analysis Committees and shared the secrets that MedTech companies need to know. Cope discussed the complexities of this process and delivered powerful insights on how MedTech companies can prepare to clear this significant hurdle in healthcare.

Below are some of my key takeaways from the session:

1. It’s Not “Cheapest Analysis Committees.” VACs (Value Analysis Committees) know that quality comes at a price, and they’re open to investing in pricier options when there’s clear evidence of long-term savings. But remember, it's on the MedTech company to spell out that business case loud and clear.

2. VACs Play the Long Game. They’re not just eyeing unit price—they’re looking at the whole package: labor costs, training time, facility utilization, inventory shifts. These operational costs all factor into the big decision on new devices, so think beyond sticker price.

3. Bring Your Own Pro Forma. Hand your champion a pre-built business case (Excel format, naturally) that they can customize. This way, when the supply chain team digs into the data, they can see how it benefits their specific setup.

4. Don’t Overlook the Continuous Improvement Team. These folks track KPIs like hospital-acquired infections and readmissions. If your device has a positive impact here, make sure it comes out clearly in your business case.

5. Get Familiar with “Revenue Integrity.” Each payer has different rates, and understanding these variances helps make your case. Nail down how CMS rates measure up—if the math works there, private payers will typically find it compelling too.

6. Leverage Value Analysis Networks. Don’t just network; connect with people who live and breathe supply chain and value analysis. Associations like the Association of Healthcare Value Analysis Professionals are a goldmine for insights.

Dive into Cope's insights to develop a device that wins in both the clinical and economic arenas. Integrate these considerations from the get-go to design a product that healthcare systems can’t wait to adopt.

Watch the full session above.