By Jeff Williamson
A medical device company was preparing to launch a novel product used in interventional cardiac surgeries — one that offered improved performance, simplified clinical workflows, and reduced procedure times. The company asked RNA to help it quantify the benefits of the new device in light of direct cost savings, workflow streamlining, and patient safety & outcomes in order to provide a full understanding of its value and a solid foundation for setting a go-to-market target price.
The RNA team held discussions with interventional cardiology and cardiac surgery KOLs to understand current clinical practices and unmet needs, conducted onsite visits at cardiac catheterization laboratories to develop a detailed view of how the device would impact current workflows, and spoke with hospital administrators to elucidate purchasing dynamics and economic drivers behind product selection. In addition, the team leveraged detailed data from CMS to estimate hospital-specific revenues and costs for the procedure (by cost center), and quantified the budget impact of the company’s new product in terms of direct costs of products displaced, as well as labor / overhead cost reductions due to faster procedure times. Based on qualitative research and quantitative analysis, RNA developed a set of detailed clinical workflows, hospital budget estimates, and prioritized customer segment definitions to produce a data-driven target price range for the company’s new product that reflected the full value delivered to both physicians and hospital customers. The company used the output from this project to support a successful round of funding to enable a robust and fully resourced market launch campaign.