News | Radiology Business | December 18, 2015

Increasingly Value-focused U.S. Medical Imaging Market Redefines Vendor-customer Relationships

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

An example of Philips' TrueVue technology, which offers photo-realistic rendering and the ability to change the location of the lighting source on 3-D ultrasound images. In this example of two Amplazer transcatheter septal occluder devices in the heart, the operator demonstrating the product was able to push the lighting source behind the devices into the other chamber of the heart. This illuminated a hole that was still present that the occluders did not seal.

An example of Philips' TrueVue technology, which offers photo-realistic rendering and the ability to change the location of the lighting source on 3-D ultrasound images. In this example of two Amplazer transcatheter septal occluder devices in the heart, the operator demonstrating the product was able to push the lighting source behind the devices into the other chamber of the heart. This illuminated a hole that was still present that the occluders did not seal. 

Feature | Ultrasound Imaging | February 07, 2019 | Dave Fornell, Editor
Here is a list of six key trends in ul...
Podcast | Cybersecurity | February 04, 2019
Cyber hackers pose a worsening threat to radiology and the rest of medical imaging.
The top article from January was about researchers in Sweden using computed tomography (CT) to image the soft tissue of an ancient Egyptian mummy’s hand down to a microscopic level. Non-destructive imaging of human and animal mummies with X-rays and CT has been a boon to the fields of archaeology and paleopathology. Most popular radiology articles and news in January 2019.

The top article from January was about researchers in Sweden using computed tomography (CT) to image the soft tissue of an ancient Egyptian mummy’s hand down to a microscopic level. Non-destructive imaging of human and animal mummies with X-rays and CT has been a boon to the fields of archaeology and paleopathology.

Feature | February 01, 2019 | A.J. Connell and Dave Fornell
February 1, 2019 — Here is the list of the most popular content on the Imaging Technology News (ITN) magazine website
In today’s digital environment, a radiologist only sees images saved and shared to the PACS, so a firm understanding of X-ray reject rates is crucial for high image quality and good workflow.

In today’s digital environment, a radiologist only sees images saved and shared to the PACS, so a firm understanding of X-ray reject rates is crucial for high image quality and good workflow.

Feature | Digital Radiography (DR) | January 29, 2019 | By Jeff Zagoudis
X-rays were the first medical imaging technology to be invented, and they remain one of the most commonly performed e
Artificial intelligence, also called deep learning and machine learning, was the hottest topic at the 2018 Radiological Society of North America (RSNA)) meeting.

Artificial intelligence was the hottest topic at the 2018 Radiological Society of North America (RSNA)) meeting, which included a large area with its own presentation therater set asside for AI vendors.

Feature | Artificial Intelligence | January 10, 2019 | Dave Fornell, Editor
Hands down, the hottest topic in radiology the past two years has been the implementation of...
Researchers Awarded 2018 Canon Medical Systems USA/RSNA Research Grants
News | Radiology Imaging | November 13, 2018
The Radiological Society of North America (RSNA) Research & Education (R&E) Foundation recently announced the...
Charles Ananian, M.D.

Charles Ananian, M.D.

Sponsored Content | Case Study | Digital Radiography (DR) | November 07, 2018
Whether it’s a premature baby or a critically ill child, treating little patients is a huge responsibility.
Results of the vertebrae-based analysis (383 vertebrae in 34 patients) for detection of BME.

Results of the vertebrae-based analysis (383 vertebrae in 34 patients) for detection of BME.

Sponsored Content | Case Study | Computed Tomography (CT) | November 06, 2018
The following is a summary of a study published in the
An example of the newest generation of smart cardiac CT software that automatically identifies the anatomy, autotraces the centerlines on the entire coronary tree and labels each vessel segment.

An example of the newest generation of smart cardiac CT software that automatically identifies the anatomy, autotraces the centerlines on the entire coronary tree and labels each vessel segment. This greatly speeds CT workflows, saving time for techs, radiologists and cardiologists.

Feature | Radiology Imaging | October 04, 2018 | By Dave Fornell
Here is a checklist of dose-sparing practices for cardiac computed tomography (CT) imaging used in the cath lab.
Philips Launches Ingenia Ambition X 1.5T MR
News | Magnetic Resonance Imaging (MRI) | September 14, 2018
September 14, 2018 — Philips announced the launch of the Ingenia Ambition X 1.5T...