Payors and Providers, Not Clinicians, Might Drive MedTech Going Forward

As payors and providers build their enterprises around digital tools, the very nature of the medtech business is changing substantially.

According to new research from Frost & Sullivan, medtech vendors are rethinking what they do as hospitals move from high-acuity and high-dependency care to decentralized models. These vendors, in turn, are beginning to rely on capabilities like AI to help them meet the demands of today’s digital healthcare environment.

Frost & Sullivan concluded that new value-added models such as managing disease through remote patient monitoring and connected care will generate revenues of $171.65 billion by 2024, representing a compound annual growth rate of 14.3%.

In response to the emergence of these technologies, it asserts, medtech players need to employ different strategies and different goals than their elders. “Medtech companies’ business models no longer aim to sell products with superior features addressing clinicians’ needs,” according to Srinath Venkatasubramanian, healthcare & life sciences industry analyst. “These models focus on saving the cost of care for payers, improving outcomes for patients and enabling operational or workflow efficiencies for providers.”