Pricing Strategy and Value Analysis Supporting Market Uptake
Payers (e.g., Medicare) base their payment rates in varying degrees on the cost of a technology or service. Because of this, a technology’s cost-effectiveness is affected by the manufacturer’s pricing. Argenta’s health economists develop pricing models to help companies assess the value to insurers and providers of a new technology. Argenta’s goal is to enable clients to establish pricing that will provide the company with maximum return while enhancing its attractiveness to insurers and providers.
Cost and Cost-Effectiveness Analyses in Support of Coverage & Payment
Payers often consider more than safety and clinical effectiveness when making coverage decisions; they often consider cost due to the potential budget impact of a technology as they are looking at the value a technology may have within the organization’s network of providers and members. Argenta’s health economists develop economic models that demonstrate to payers the costs and cost-effectiveness (value) of new medical products or services. These analyses can be an important part of payer education materials or other applications for coverage or payment, especially if a technology is priced at a premium. Our goal is to show insurers that the new technology will save them money or, if not, that it is cost-effective and will provide substantial benefits to their health plan members.
Cost and Budget-Impact Analyses in Support of Sales to Providers
Many new medical products or services are not reimbursed separately, but rather bundled into payments for another service/procedure. In these cases, payers are not necessarily the audience for a medical technology company’s value messaging. Providers might be the more appropriate audience. Argenta’s health economists develop cost- and budget-impact models to show providers how their finances will be impacted by using a given technology. Our goal is to show providers that a technology will save them money or, if not, that its budget impact will be small, while providing important benefits to patients.
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