News | Radiology Business | December 18, 2015

Vendors and providers initiate shift to shared-risk agreements and long-term technology partnerships, finds Frost & Sullivan

Image courtesy of Barco


The fee-for-service reimbursement model that has been the norm in U.S. medical imaging is on its way to becoming obsolete. The increasingly popular accountable care payer-provider contracts are set to phase out existing payment models and, in their wake, alter provider-vendor relationships. The shift to value-based, outcomes-based or quality-based payments will push forward new purchasing frameworks in the medical imaging space, focusing on value, risk-sharing and long-term technology partnerships.

Analysis from Frost & Sullivan, Development of Value-based Imaging, finds the greater focus on value-based purchasing will eventually touch every segment of the imaging provider spectrum and may become the standard in five years.

“According to the current consensus, more than one in seven imaging procedures in radiology and one in five imaging procedures in cardiology will already be reimbursed as part of bundles in 2016,” said Frost & Sullivan Transformational Health Principal Analyst, Nadim Daher. “This advent of new payment models is already affecting the top and bottom lines of imaging providers, and will deeply impact the way customers assess imaging vendors and invest in imaging technology, thus encouraging new methods of working with vendors through enterprise-level deals.”

In fact, nearly one in two imaging facilities are experiencing the rising influence on purchase decisions of enterprise stakeholders such as the C-suite, hospital management, financers and IT that do not belong to core imaging departments. Each stakeholder at the decision table has an agenda, priorities, and a set of key performance indicators (KPI) that imaging vendors need to commit to improving.

In a growing number of deals, this commitment is actually being contractualized. In fact,  as payers continue to put healthcare providers more at-risk through accountable care models, large healthcare institutions are initiating discussions with imaging vendors regarding the feasibility of sharing some of the risk, as well as some of the profit.

Furthermore, unprecedented consolidation in the healthcare provider and payer markets is starting to reflect on the addressable market as well. A smaller pool of larger customers will compel vendors to rethink, if not revamp, their value proposition. Redesigning cross-modality solution packages and consultative sales approaches around value and outcomes will not be an easy task, especially for established imaging vendors.

“Vendors need to re-think their sales approach and value proposition to secure a position as the vendor of choice in each modality, as well as take more ownership of their customers’ KPI,” noted Daher. “They will need to exhibit higher pricing transparency, offer ROI modeling tools and provide best-in-class analytics capabilities to help customers rationalize imaging investments and quantify imaging outcomes”

A number of high-profile, long-term vendor-customer alliances have started emerging in the U.S. medical imaging market, not unlike the new-generation of managed equipment services (MES) contracts being signed in various countries in Europe. These win-win technology partnerships are a solid step towards the re-alignment of incentives across the imaging value chain.

For more information: http://bit.ly/1SlQQHn


Related Content

Feature | X-Ray | Kyle Hardner

Water-window X-rays allow researchers to visualize biological cells at high contrast without staining agents or other ...

Time June 23, 2026
arrow
News | Artificial Intelligence

June 15, 2026 — HOPPR recently announced that HOPPR AI Foundry is now available in AWS Marketplace. The availability ...

Time June 19, 2026
arrow
News | Digital Pathology

June 15, 2026 — Leica Biosystems is expanding the availability of its Aperio GT Elite digital scanner into the EMEA ...

Time June 15, 2026
arrow
News | Radiology Business

June 9, 2026 — Bayer has appointed Dr. Jost Reinhard president of the Radiology business within Bayer’s Pharmaceuticals ...

Time June 12, 2026
arrow
News | Enterprise Imaging

June 9, 2026 — GE HealthCare will showcase its latest enterprise imaging solutions at the Society for Imaging ...

Time June 09, 2026
arrow
News | Innovative Hospitals

May 27, 2026 — Nearly two years after announcing plans for a “real-world” academic-industrial collaboration, GE ...

Time June 03, 2026
arrow
News | Radiology Business

May 22, 2026 — The American College of Radiology (ACR) supports passage of the Medicare Access to Radiology Care Act (S ...

Time May 26, 2026
arrow
News | Radiology Business

May 22, 2026 — U.S. Sens. Boozman, R-AR, and Luján, D-NM, have introduced the Medicare Access to Radiology Care Act ...

Time May 26, 2026
arrow
Feature | Enterprise Imaging | Kyle Hardner

For radiology departments, the imbalance between surging imaging volume and a shortage of trained radiologists is taking ...

Time May 20, 2026
arrow
News | Magnetic Resonance Imaging (MRI)

April 27, 2026 — SimonMed, one of the nation’s largest independent outpatient imaging providers, has announced the ...

Time May 04, 2026
arrow
Subscribe Now