Providers of care and policymakers in the US have generally failed to embrace the medical materials environment in their pursuit of value based purchasing. Accounting for as much as 25% of a hospital’s spend the reluctance to engage both clinicians and suppliers, through proper incentive schemes, leaves millions of dollars “on the table” and an unsystematic approach to providing the best products for the best price.
Bundled payments have increased awareness of the burden of materials’ costs. A shift from supplier driven to demand driven innovation and procurement has not been pervasive. It is with reluctance that the designers of products have looked toward the “economic customer” for guidance. In Europe, the shift toward demand based purchasing is reflected in a proliferation of strategic and cooperative innovation and procurement.
The shift to demand-based purchasing requires incentives to drive providers to work with clinicians to adopt innovations and incentives to suppliers to design KPIs that reflect the collaboration value providers. Incentives also come from payors who have assumed that engaging providers with risk-based schemes is sufficient. We propose to ignite this discussion and to scrutinize schemes developed in the US and abroad that have incentivized demand based purchasing.