𝐖𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐎𝐄𝐌 𝐢𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐡𝐚𝐯𝐞 𝐭𝐨 𝐝𝐨 𝐰𝐢𝐭𝐡 𝐯𝐚𝐥𝐮𝐞-𝐛𝐚𝐬𝐞𝐝 𝐜𝐚𝐫𝐞—𝐭𝐡𝐞 𝐩𝐮𝐫𝐩𝐨𝐬𝐞, 𝐭𝐡𝐞 𝐦𝐨𝐝𝐞𝐥, 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐭𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲?
A decade ago, when I was working at the payer side, a well-meaning colleague advised me against joining a healthtech OEM. "Value-based care," he argued, "will squeeze their profits and make it harder for them to survive."
My curiosity and love for tech drove me to return to the healthtech industry anyway, and today I feel compelled to share that it’s far from true. Instead, the value-based approach should be the future of all healthcare players.
The goal of value-based care is to drive high-quality outcomes at a lower cost.
𝐅𝐨𝐫 𝐩𝐚𝐭𝐢𝐞𝐧𝐭𝐬, this means better, faster, and more affordable care. They need equitable, accessible care and a clear pathway to better overall health and wellness.
𝐅𝐨𝐫 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐫𝐬, this means to deliver that care sustainably – less administrative burdens, less waste in the workflow, logistics, planning, and less burnout – so they can focus on treating patients.
So how does OEM innovation tie into this? A single technology is just the starting point. True transformation requires a systemic approach. I call this framework 𝐓𝐡𝐞 𝐕𝐁𝐂 𝐅𝐥𝐲𝐰𝐡𝐞𝐞𝐥™.
It’s a system where three core components push on each other to build sustainable momentum:
✔️ 𝐂𝐥𝐢𝐧𝐢𝐜𝐚𝐥 𝐀𝐜𝐜𝐞𝐥𝐞𝐫𝐚𝐭𝐢𝐨𝐧: Innovation that speeds up the process and improves accuracy, efficiency, such as AI workflow in imaging devices.
✔️ 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞: Innovation that reduces waste and operational costs, such as predictive monitoring to reduce downtime and prevent delays in Radiology patient care.
✔️ 𝐒𝐲𝐬𝐭𝐞𝐦𝐢𝐜 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐌𝐨𝐝𝐞𝐥: A holistic business model, not just the revenue model, like SaaS/RaaS, built on an interoperable system backbone, integrates these innovations and creates the structure for delivering value.
When these three elements work in concert, they create a virtuous cycle. Better business models fund better technology, which improves outcomes and proves the value that strengthens the business model.
This leads me to ask the leaders in my network:
👉 Does your innovation roadmap orchestrate the synergies among these innovations?
👉 How does the culture and KPIs inside a traditional medical device OEM change to truly embrace this shift from selling products to selling outcomes?
I would love to hear other thoughts on this topic.
#HealthTech #ValueBasedCare #VBC #OEM #MedicalDevices #BusinessModelInnovation #HealthcareLeadership #DianosticImaging #Radiology #HealthIT #HealthcareInnovation #DigitalHealth #MedTech #HealthEquity
Real traction in post-acute comes from solving real problems, not headlines.