April 16th, 2012
Posted by Caroline Popper, M.D., M.P.H.
Healthcare practitioners and technology developers alike are experiencing new pressures to either reduce delivery costs or to consider cost-effectiveness when developing new products. As an illustration of this new pressure, nine medical societies recently listed 45 procedures that they believe need to be streamlined, or eliminated, to reduce costs associated with patient care.
We at Popper and Company believe that many of these recommendations are fairly obvious, such as not ordering a CT scan or antibiotics for someone with uncomplicated sinus inflammation, or forgoing routine annual electrocardiograms for low-risk, asymptomatic patients.
But these medical society recommendations addressing patient care point to an important issue for life science companies in the business of developing new health products—a need to get away from building revenue projections based on a population-based “screening” mode, and an urgency to shift to ensuring desired ROI based on a personalized one.
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