Understanding How Hospitals Buy Medical Technology
Modern hospitals depend heavily on medical technology to diagnose, treat and prevent diseases. A typical mid-sized hospital has hundreds of items of medical equipment, from simple stethoscopes and blood pressure monitors to highly sophisticated MRI machines and linear accelerators. Hospitals are complex enterprises with entire departments dedicated to technology planning, assessment, acquisition, maintenance, upgrade and replacement at the end of the product life cycle. They have elaborate systems, programs, policies, procedures and protocols in place for purchasing new medical equipment.
To sell successfully to healthcare providers, marketing and sales professionals have to be well versed in the buying processes that healthcare providers use. Medical device marketing is quite different from any other marketing. Typically, hospitals have a review process to qualitatively and quantitatively evaluate their medical technology needs. The review’s scope depends on the cost of the technology, and may involve many departments. For expensive equipment, the review most likely will be elaborate. For less expensive and disposable items, the review may simply assess the department’s current needs, and the proposed purchase’s operational and financial impacts. In either case, a market survey and literature search take place to some extent, and this is supplemented with extensive data collection and analysis when needed. This is why white papers and case studies published by medical device manufacturers are very useful during the review process – the decision-makers look for every bit of information they can find. Hence, white papers and case studies can significantly influence the decision-making process. A typical review process includes the following phases: