Quality Outcomes Guarantee
The Quality Outcomes Guarantee enables medical device manufacturers to enter into value-based risk sharing arrangements with providers around the outcomes of the procedures where their device is used.
The Problem
As providers are being pushed to enter into Value-Based Payment arrangements, they are looking for any and all ways to reduce costs of care. Medical technology and device companies subsequently are being asked to lower their prices considerably to win business. Unfortunately, this commoditizes devices making it a race to the bottom for those manufacturers.
Simultaneously, medtech companies are being asked to enter the value-based world and “share risk.” The risk they are being asked to share is not the risk of their product performing to specifications (that is already expected), but the risk of healthcare outcomes where their device is used. This sharing of risk now makes the medical device manufacturer a valued partner in the process of care and no longer simply a vendor. The problem is that device manufacturers are not risk experts.
Our Solution
Risk is BLISCare’s business! BLISCare works with manufacturers to apply a Quality Outcomes Guarantee to their device enabling them to enter into these risk sharing agreements. Device manufacturers realize multiple benefits from adding this new capability to their offering:
Value-Based Partner - now viewed as an integral partner in care, versus simply a vendor
Customer Stickiness - Customers less likely to move to a competing device when risk is part of the offering
Price Retention - Including risk adds additional value to the provider customer
Cost Certainty - fixes the cost of the guarantee’s downside risk
“There are a lot of things where we should really be asking the question, ‘Why is it that, if something fails, you have to pay full price to get it fixed?’ I’m confident, not too far in the distant future, this is going to be the norm.”