CHAGRIN FALLS, Ohio, July 30, 2015 /PRNewswire/ -- Cleveland Clinic President Wael Barsoum, M.D. emphasized in his OMTEC® 2015 keynote address last month that industry is compelled to adopt declining reimbursements throughout its business models in order to gain the efficiencies—and develop the transformational innovations -- required to thrive in the future.
Dr. Barsoum's comments were preceded by Doug Kohrs, past President and CEO of Tornier, avid entrepreneur and OMTEC moderator, who stressed that industry must add "episode of care," also known as bundled payments, to its lexicon and embrace the transition toward this reimbursement model. "The beneficiaries of these new industry dynamics will be the patient and those companies that realize that this change is inevitable," added Mr. Kohrs.
On the heels of their forewarning, the U.S. Centers for Medicare & Medicaid Services (CMS) proposed a mandatory bundled payment model to eradicate waste in knee and hip replacements. The program will incentivize hospitals to realize improved patient outcomes at lowered costs whilst inevitably increasing price pressure on device companies.
"Myriad government-initiated mandates -- from unique device identification (UDI) to this paradigm shift in the Medicare payment model -- fuel pricing pressures along the entire spectrum of the supply chain," commented Carolyn LaWell, ORTHOWORLD's Content Manager. "Many OEMs and Suppliers are long past critical mass in terms of cost cutting. They elected to gather at OMTEC last month to seek out ideas to keep their businesses healthy and orthopaedics, as a specialty, advancing."
Progress on the industry's adoption of the reimbursement shift to episode of care is expected to be reported upon at the 2016 OMTEC conference, scheduled for June 15-16 in Chicago. The conference will unite nearly 1,000 orthopaedic professionals for two days of education and networking. Applications for exhibit space are being accepted now from www.OMTECexpo.com.
Carolyn LaWell | Content Manager
SOURCE ORTHOWORLD Inc.