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Medtech’s Dilemma: Ambulatory Surgery Centers Want a Discount

Pressure on medtech companies is rising as outpatient surgery centers grow.

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Medtech’s Dilemma: Ambulatory Surgery Centers Want a Discount

Ambulatory surgery centers (ASCs) are under constant pressure to reduce costs and improve efficiency, since payers reimburse them less than for the same procedure carried out in a hospital. The risk to manufacturers is that ASCs will have a greater propensity to switch to another device maker, if the price is right. Bain research shows that ASC physicians are more price-sensitive when purchasing medical devices and expect lower prices than hospitals pay for the same equipment, especially in orthopedics. Sixty percent of ASC physicians said they would purchase a similar device from a different manufacturer if it were offered at a 15% discount.

Tim van Biesen leads Bain & Company’s Global Healthcare practice, and Todd Johnson is a partner with Bain’s Healthcare practice.  Both are based in the firm’s New York office.

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