Industry consolidation, regulation and new levels of transparency put incredible pressure on healthcare manufacturers. Today, healthcare purchasing professionals are in charge; it’s no longer a manufacturer-led sales process. And even the perception of raising prices creates a backlash from customers.
Healthcare Manufacturers Face a Pricing Perfect Storm
Savvy procurement professionals now drive purchase decisions, once dictated by doctor preference, to ensure standardization to drive down costs. In the current healthcare climate, it’s no wonder facilities are hyper-focused on savings. Facilities must defend against price pressures due to:
- Changing patient expectations – 19% of millennial patients ask for discounts or seek cheaper treatment options
- The effects of consolidation – vendors may find themselves at the mercy of two merging conglomerates when they pool contracts together
- Pricing transparency – providers’ procurement teams that also leverage GPOs can easily cherry-pick to lower prices
These and other market forces have created the “pricing perfect storm” for healthcare manufacturers.
A Beacon in the Pricing Storm
For those medical device professionals weathering this “pricing perfect storm,” there is, thankfully, Q1 Productions’ Medical Device Pricing & Strategic Accounts conference every fall in Atlanta. This event gives industry executives access to information and education on pricing methodologies and strategic account and customer management. PROS is a proud sponsor of this year’s event, happening October 5 – 6, 2017.
On October 5, Chris Jones, PROS Senior Vice President of Sales, will present, “Are You Ready for the Pricing Perfect Storm Hitting the Healthcare Industry?” in the general session. During his presentation, Chris will touch on the ways that medical device manufacturers can leverage modern commerce solutions to drive better pricing outcomes. Executives who attend will learn:
- How manual, disconnected processes have gotten us where we are today
- Why manufacturers must proactively respond to customers’ modern commerce needs
- The need for innovation in pricing procedures and possibilities for modernized pricing in funding innovation
- The role of dynamic pricing science and machine learning in delivering fair and accurate pricing
Most industries today face significant digital transformations that have put the buyer in charge. Modern commerce technologies help businesses overcome the challenges of outdated sales and pricing processes to enable frictionless buying experience that delivers personalized offers across all channels in real time.
If you’re attending this year’s conference and would like to discuss modern commerce pricing strategy for your organization, let us know. We would love the opportunity to meet with you in Atlanta.