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Medtech Cost Management Systems Fall Short

Executives are frustrated by poor spending visibility and accountability.

스냅차트

Medtech Cost Management Systems Fall Short
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Although 80% of medtech companies have undertaken major cost programs over the past five years, only 10% reported achieving all of their goals, according to a recent Bain survey. A key reason for the poor track record, medtech executives say, is the lack of spending visibility and accountability. Only 24% of executives feel that their organization performs “very well” on spending accountability, and fewer than 12% feel that way about how their organization allocates spending. To address that shortcoming, leading medtech companies are testing a more radical approach to cost management—zero-based budgeting (ZBB)—which improves visibility and holds individuals accountable for achieving savings.

Patrick O’Hagan and Jason Evers are partners with Bain & Company’s Healthcare practice. Patrick is based in the firm’s Boston office, and Jason is based in Chicago.

Read the Bain Brief

A Better Way to Manage Costs in Medtech

Zero-based budgeting vastly improves spending visibility and accountability.

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