SOURCE: Cutting Edge Information

Cutting Edge Information

January 09, 2015 08:00 ET

71% of Medical Device Health Economics and Outcomes Research Groups Use Patient-Reported Outcomes to Aid in Payer Negotiations

RESEARCH TRIANGLE PARK, NC--(Marketwired - January 09, 2015) - As the drug reimbursement landscape grows more competitive, 71% of medical device health economics and outcomes research (HEOR) groups are turning to their patient-reported outcome (PRO) counterparts to aid in payer negotiations, according to pharmaceutical business intelligence provider Cutting Edge Information

Among companies that use PROs, 50% outsource some of the reporting duties while the other half maintains all activities in-house. Regardless of organization, it is critical that medical device HEORs receive dependable PRO data. Reliability may vary for a number of reasons, including therapeutic area or product type and data collection methodology.

"Recent guidance on developing approved outcomes measures has led to increased PRO usage among life science companies," said Jacob Presson, senior research analyst at Cutting Edge Information. "PROs give the patients a voice, which HEOR groups can use to their advantage while negotiating reimbursements and justifying premium pricing."

Although PROs are useful tools, they are not suitable for all products. Medical devices that surgeons use in the operating room, for example, are too specialized. Patients in those cases cannot expertly review the product's impact on their treatment. 

Reliability of PROs data is key to its successful implementation. But the study found that PRO reliability may vary for a number of reasons. The data show that the half of surveyed medical device find PRO sources reliable. An additional 7% reported PROs as very reliable data sources. Another 29% of surveyed companies report that these data are only somewhat reliable and the remaining 14% of surveyed device companies find PROs to be unreliable.

Health Economics for Medical Devices: Addressing Payer Concerns with a Successful Value Proposition is available at http://www.cuttingedgeinfo.com/research/market-access/medical-devices-health-economics/ and shows device companies how HEOR teams can best support Class II and Class III medical devices throughout their lifecycles. Medical device HEOR teams can use this report to:

  • Outsource HEOR activities to fill knowledge gaps and provide data to meet payer demands. 
  • Structure medical device HEOR groups to meet payer requirements for information.
  • Allocate budgets and resources effectively for HEOR studies.
  • Understand the annual costs of supporting HEOR for medical device products.

For more information about Cutting Edge Information's health economics and outcomes research, visit www.cuttingedgeinfo.com.

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