The conceptual ideal of value-based purchasing is the informed, cost-conscious, and sophisticated consumer spending his or her own money and choosing among simple services in a technologically stable environment. 2
Generic pharmaceutical products are frequently being used as alternatives to branded prescription drugs that have reached the mature stage of their product life cycle and no longer have patent protection. Generic pharmaceutical products appeal to healthcare purchasers because they offer greater value – equivalent efficacy to established branded drugs and significant cost advantages.
There is now growing interest in the use of ‘generic’, or functionally equivalent, devices in orthopaedics. There are currently more than twenty companies promoting low cost orthopaedic products in the US market.3 & 4 Over the last thirty years the use of devices in orthopaedic surgical procedures has increased significantly. Many of the devices now used in these procedures utilise mature technology that was introduced a number of years ago and is no longer patent protected. These devices have reached the mature stage of their product life cycle (just like the generic pharmaceuticals outlined above) and have in effect ‘commoditised’. Despite the maturity of the technology and the ‘commoditised’ nature of these products a number of companies still charge a premium price for many of these devices.
The OrthoSolutions Direct range of products can appeal to those customers who are looking to make value based purchasing decisions. The product range includes orthopaedic trauma and consumable products that are functionally equivalent to other branded products and price positioned to offer cost advantages. Importantly we recognize that cost savings must not be at the expense of quality and ultimately clinical outcomes. All our consumable products are therefore sterile packed for ease of use and enhanced traceability control.
‘In health care, value can be broadly considered to be a function of quality, efficiency, safety, and cost.’ 5
Greater value can be realised if a product costs less, or helps deliver efficiency gains, and does not compromise quality standards or the outcomes of a clinical intervention. The OrthoSolutions Direct product portfolio can help a hospital, or clinical team, that is striving to realise enhanced value without compromising quality standards or clinical outcomes.
2 – James Robinson – Value Based Purchasing For Medical Devices – Health Affairs – Volume 27, No.6 – November/December 2008.
3 – Julie A. Vetalice – Generic and Low cost Manufacturing Companies in Orthopaedics – Orthoknow – October 2012.
4 – Julie A Vetalice – An Update on Generic and Low cost Manufacturing Companies in Orthopaedics – Orthoknow – October 2013.
5 – Deloitte Center for Health Solutions – Value Based Purchasing – A Strategic Overview for Health Care Industry Stakeholders – 2011