Sales in the MedTech industry is a unique challenge. It involves long buying cycles, multiple stakeholders—from clinicians to procurement departments and payers—strict regulations, and high-value deals. To navigate this complex environment, leading MedTech companies are adopting digital tools, data-driven strategies, and streamlined workflows to improve efficiency and drive growth.
The ground is shifting beneath the traditional MedTech sales model. A move toward value-based healthcare, combined with digitalization and intense cost-control pressures, is forcing a change. Companies can no longer rely on simply selling a device; they must prove its value and impact on patient outcomes and hospital finances. This requires a new approach to pricing and go-to-market strategies.
In this blog, we will explore the latest pricing trends and go-to-market (GTM) models that are reshaping the MedTech industry. We will also examine the technologies that make these innovative approaches possible.
New Pricing and GTM Models in MedTech
To meet the demands of a value-centric healthcare system, MedTech pricing is becoming more flexible, creative, and customer-focused. Static, one-size-fits-all price lists are being replaced by dynamic models that align with how providers and patients measure success. Here are the key models driving this change.
Value-Based Pricing (Outcomes-Based Contracts)
This model directly links the price of a medical device to the clinical or economic outcomes it delivers. Instead of just paying for a product, hospitals and providers pay for results, such as fewer patient readmissions, lower infection rates, or faster recovery times. This approach creates a partnership where the MedTech company and the healthcare provider share the risk.
For example, an orthopedic implant manufacturer might link payment for its devices to post-surgery patient mobility scores or a reduction in costly revision surgeries. This model requires robust data collection and analysis to track outcomes, but it powerfully demonstrates a commitment to delivering real value.
Subscription and “Device-as-a-Service” (DaaS) Models
Many hospitals are shifting their financial strategies from large, upfront capital expenditures (CAPEX) to more predictable operational expenditures (OPEX). The subscription or DaaS model fits perfectly with this trend. Hospitals pay a recurring monthly or annual fee that bundles the device, software, ongoing maintenance, and even training.
This makes advanced technology more accessible for hospital CFOs who might hesitate at a large initial investment. Surgical robotics companies like Intuitive Surgical and Stryker have successfully moved toward pay-per-use or subscription models, making their cutting-edge platforms available to a wider range of institutions.
Pay-Per-Use or Consumption-Based Models
With a pay-per-use model, hospitals only pay when a device or associated consumable is actually used. This is an ideal structure for diagnostic platforms, advanced imaging systems, or surgical robots where usage can vary. An imaging center, for instance, could pay a fee for each MRI scan performed, rather than purchasing the multi-million-dollar machine outright. This lowers the financial barrier to entry and aligns costs directly with revenue-generating activities.
Risk-Sharing and Shared Savings Models
This approach takes value-based pricing a step further. If a medical device helps a hospital reduce costs by preventing complications or shortening stays, the resulting financial savings are shared between the provider and the MedTech company. This model directly aligns the company’s success with the healthcare system’s goal of cost control, fostering a true partnership focused on efficiency and patient care.
Bundled Solutions Pricing
Instead of selling individual products, companies are increasingly bundling devices, disposables, software, and services into a single comprehensive package. This simplifies the procurement process for hospitals, reducing the administrative burden of managing multiple vendors. These bundles are often offered with tiered pricing, allowing customers to choose a package (e.g., basic, premium) that best fits their needs and budget.
Hybrid CAPEX and OPEX Models
For high-cost systems like advanced imaging equipment or robotics, a hybrid model offers a balanced approach. It combines a smaller upfront payment for the hardware (CAPEX) with ongoing fees for services, software updates, or consumables (OPEX). This makes the initial purchase more manageable, while creating a predictable, recurring revenue stream for the MedTech company.
Patient-Direct (D2C) Pricing
A growing trend, especially with wearables, remote monitoring devices, and digital therapeutics, is selling directly to patients. Companies bypass traditional provider channels and offer their products through subscription or freemium models. Examples include at-home ECG monitors or sleep apnea devices that are marketed to consumers and offered on a recurring payment basis.
The Technology Enabling New MedTech Sales Models
Implementing these innovative pricing and GTM strategies is nearly impossible with outdated, manual processes. Spreadsheets and disconnected systems cannot handle the complexity of tracking outcomes, managing subscriptions, or calculating shared savings. To succeed, MedTech companies are investing in agile pricing and selling systems.
These modern solutions enable:
- Automation of compliance-heavy tasks to reduce administrative burdens and prevent costly delays.
- Data-driven targeting that empowers sales teams to have value-based conversations with customers.
- Digitized workflows that improve the customer experience and shorten long sales cycles.
By embracing digital tools, AI, and automation, MedTech companies can make their complex B2B sales processes faster, more compliant, and more focused on delivering tangible value. These technologies provide the foundation needed to build and manage the sophisticated pricing models that the future of healthcare demands.
Ready to revolutionize your MedTech pricing and sales strategies? Discover how our cutting-edge solutions can help you stay ahead in a rapidly evolving industry. Contact us to learn more.
Frequently Asked Questions
Value-based pricing ties payments to clinical or economic outcomes, such as fewer readmissions or faster recovery. It aligns MedTech companies with healthcare providers’ goals of improving patient outcomes and reducing costs.
Subscription models, or “Device-as-a-Service,” offer predictable operational expenses (OPEX) instead of large capital expenditures (CAPEX). This makes it easier for hospitals to budget and access advanced technologies.
Pay-per-use pricing allows hospitals to pay only when a device or consumable is used. This model is ideal for diagnostic platforms, imaging systems, and surgical robots, reducing upfront costs.
Technology enables automation, data-driven targeting, and digitized workflows, making complex sales processes faster, more compliant, and value-driven.
Bundled solutions combine devices, disposables, software, and training into a single package, simplifying procurement and reducing vendor management for hospitals.
