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A Better Way to Manage Costs in Medtech

Zero-based budgeting improves spending visibility and accountability.

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A Better Way to Manage Costs in Medtech
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Medtech companies face rising cost pressure, and many are considering a more radical approach to cost management—zero-based budgeting (ZBB).  When implemented broadly across an organization, ZBB can delivery up to 25% in cost savings. Yet despite those potential gains, medtech companies have been slow to deploy the tool. Bain research shows 70% of medtech executives familiar with ZBB view it favorably, but only 15% report having implemented a large-scale program across their companies.

Patrick O’Hagan is a partner with Bain & Company’s Healthcare practice in the Boston office. Jason Evers is a partner in Bain’s Healthcare practice in the Chicago office. 

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A Better Way to Manage Costs in Medtech

Zero-based budgeting vastly improves spending visibility and accountability.

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