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Value-Based Selling: From Volume to Value, Outcomes Over Devices

  • Writer: Daniel Altherr
    Daniel Altherr
  • Mar 10
  • 16 min read

Updated: Mar 13

The MedTech industry is undergoing a paradigm shift. As healthcare systems worldwide move from a fee-for-service, volume-driven model to value-based care, medical technology companies are being challenged to rethink how they market and sell their products. No longer is it enough to tout the latest features of a device – today’s hospitals and clinics demand evidence of improved patient outcomes and economic value. In this blog, I explore how MedTech executives, marketers, and sales professionals can embrace Value-Based Selling – a strategy centered on delivering measurable clinical and economic outcomes rather than just products. I’ll dive into data-driven insights on the volume-to-value transition, examine the key pain points healthcare customers face, and outline strategies (from ROI tools to cross-industry best practices) to succeed in this new landscape. The goal: help you pivot from selling devices to selling value, forging partnerships that benefit providers, payers, and patients alike.


1. The Shift to Value: From Volume-Based to Value-Based Healthcare


Healthcare providers are under intense pressure to improve quality while controlling costs. This has fueled a broad movement from “volume” to “value” – instead of reimbursing for each procedure or device (volume-based), payers are increasingly tying payments to patient outcomes and cost-effectiveness (value-based). For MedTech companies, this shift has profound implications on sales strategy.


Rising Momentum for Value-Based Care: In the U.S., value-based payment models have quickly gained traction. The trend is clear: over half of U.S. health reimbursements now have a value-based component, signaling that the era of purely fee-for-service medicine is waning.[1]​[2] In Europe, a 2020 MedTech Europe/BCG report noted leading health systems beginning to award contracts based on outcomes and total-life-cycle cost instead of lowest price.[3]​


Erosion of Traditional Sales Models: For MedTech manufacturers, these changes are undermining business-as-usual. Relying on physician preferences or premium pricing for incremental product improvements is no longer a safe bet. Take the example of the U.S. Medicare Comprehensive Care for Joint Replacement (CJR) program: under this bundled payment model, hospitals get a fixed reimbursement for a full episode of a knee or hip replacement. A study found that implant costs (paid to device makers) dropped by 30%, accounting for 80% of the cost savings in CJR.[4] In other words, when providers are incentivized to manage total costs, they squeeze device prices significantly. MedTech companies that can’t demonstrate superior value risk seeing their products commoditized in such frameworks.


Opportunities for Value Creators: On the flip side, the volume-to-value shift opens new opportunities for MedTech firms that innovate and prove value. Leading device makers are already investing in outcome-improving add-ons: for example, orthopedics companies have built comprehensive programs for joint replacement that include patient education, surgical prep optimization, at-home rehab, and outcome tracking. These integrated offerings go “beyond the device” to address the entire care cycle (see Exhibit 1), positioning those companies as partners in efficiency rather than just suppliers of hardware.4 The MedTech industry’s traditionally strong relationships with clinicians give it an edge – companies can collaborate directly with care teams to pilot innovations that boost outcomes and lower costs. In fact, top MedTech firms are now partnering with regulators, payers, and providers to develop new care models (such as disease registries and data-sharing programs) that accelerate value-based healthcare. The message is clear: those who embrace value-based strategies early can not only defend their turf but also expand into new profit pools by delivering what healthcare really needs – better results for patients per dollar spent.

Exhibit 1: Orthopedic Implant Makers Are Moving “Beyond the Device” to Offer Solutions Across the Total Cycle of Care. [4]
Exhibit 1: Orthopedic Implant Makers Are Moving “Beyond the Device” to Offer Solutions Across the Total Cycle of Care. [4]

2. Customer Pain Points in Adopting Value-Based Models


If value-based care is such a win-win, why isn’t it universal yet? The reality is that hospitals, procurement teams, and healthcare providers face significant pain points and barriers in moving to value-based purchasing and partnerships.


Measuring Outcomes and Value: One fundamental hurdle is the difficulty of measuring “value” in a complex care environment. Hospitals need robust data to compare outcomes (infection rates, readmissions, recovery times, etc.) but lack the IT infrastructure and analytic tools to track patient outcomes across the continuum of care. This makes it challenging for procurement teams to confidently say, “Device A will reduce complications by X% and save us $Y over five years.” They need suppliers to provide the evidence.


Short-Term Pressures vs Long-Term Value: Another pain point is the tension between short-term budget pressures and long-term gains. Hospital administrators often operate on annual budgets that make it hard to invest today for savings that may accrue years later. A new surgical robot or advanced implant might reduce complications (and downstream costs), but if it’s twice as expensive as standard equipment, a procurement officer might balk because this year’s budget may not accommodate it. In my experience, MedTech companies increasingly also face internal short-term pressures – quarterly sales targets – which can make it difficult to engage in innovative contracting that pays off over multiple years.


Lack of Trust and Alignment: Switching to value-based partnerships requires a high degree of trust between providers and suppliers, which isn’t always present. Now value-based deals blur those lines – for example, a risk-sharing contract might refund the hospital if the device underperforms. However, hospital buyers may be skeptical of vendor-provided data (“Are these results really as good as you claim?”), while manufacturers worry that providers might not implement the product optimally yet still demand outcomes guarantees. Without experience to build on, many feel like they’re flying blind – and that uncertainty breeds caution and slows adoption.


Fragmented Decision-Making: In traditional device sales, a gifted sales rep might convince a surgeon to champion a product. But in value-based models, purchasing decisions are far more complex, often involving committees and multiple stakeholders: clinicians, procurement, finance, IT, even patients. Each has different concerns, creating a “conflicting priorities” headache.[5]​For example, a catheter might greatly reduce infections (exciting the clinicians) but be more expensive per unit (worrying procurement) and require new software to track infection rates (involving IT). Getting everyone on the same page is difficult, leading many hospital committees to default to status quo.


Regulatory and Legal Concerns: Finally, there are external barriers. For instance, U.S. anti-kickback laws – designed to prevent improper incentives – can make hospitals and companies nervous about outcome-based payments or shared-savings deals. Until very recently, offering a hospital a rebate if outcomes aren’t met could be interpreted as an inducement in some cases.


3. Selling Outcomes, Not Devices


One of the most profound changes for MedTech commercial teams is the shift from selling product features to selling outcomes. Value-based selling means framing your offering in terms of the measurable clinical and economic improvements it delivers. As bluntly put in a recent MedTech sales strategy guide: “Your buyers don’t care about your product. They care about what it can do for them.”​ [5] This mindset requires retraining and retooling of sales teams who may be accustomed to leading with technical specs or physician relationships.


How do you do that? It starts with deeply understanding the customer’s goals and pain points (as discussed above) and then aligning your solution to those. Rather than saying “This is the newest XYZ device with a novel titanium alloy,” a value-based sales approach might sound like: “This device has been shown to reduce post-surgical complications by 20%, which means patients recover faster and the hospital saves on readmission costs.”​ [5] This kind of statement puts the focus on outcomes that the buyer cares about (fewer complications, lower costs, higher patient satisfaction) not on the product itself.


Evidence-Backed Storytelling: Of course, especially in MedTech, claiming outcome improvements requires proof. High-performing MedTech sales teams increasingly use clinical studies, real-world evidence, and health economic models to tell a story of impact. If available, peer-reviewed research or pilot results are gold – they lend credibility that resonates with medically trained customers. Reps must become conversant in outcomes data and comfortable discussing study endpoints and cost-benefit metrics, not just product specs and price. This is a significant upskilling, often requiring training in health economics and access to new kinds of sales collateral.


Multi-Stakeholder Persuasion: Selling outcomes also means adapting the message to different stakeholders in the buying process. The value proposition needs to be slightly different for each persona:


  • Clinicians (Physicians, Nurses): Focus on improved patient outcomes, clinical efficacy, and how the solution fits into workflow to make their jobs easier or improve care quality.

  • Hospital Administrators/C-Suite: Focus on the strategic impact – improved quality scores, alignment with value-based care initiatives, and reputation for excellence.

  • Procurement and Finance: Focus on economic outcomes – total cost of ownership, return on investment, payback period, and risk mitigation. These stakeholders will respond to hard numbers. If risk-sharing or guarantees are offered, mention how those de-risk the purchase for the hospital.

  • IT or Data Teams: If your solution involves data or integration, highlight compatibility, cybersecurity, and how the data can feed into their systems for tracking outcomes.


By addressing each stakeholder’s criteria, the sales team shows that they understand the customer’s world. This tailored, outcomes-centric approach is far more effective than a one-size-fits-all pitch.


From Vendor to Partner: Ultimately, selling outcomes shifts the MedTech company’s role from vendor to partner. It becomes a collaborative relationship focused on mutual success metrics. The best salespeople in a value-based context act almost like consultants or advisors; they help the customer visualize a future state where a problem is solved and then work together to achieve it. This builds trust and long-term loyalty. It also often leads to larger deals – instead of selling one product, you might sell a whole solution bundle plus services that ensure the outcomes are realized. As a bonus, this approach differentiates you from competitors.


Transitioning a sales force to value-based selling is now mission-critical. The old-school relationship-based sale is diminishing; in its place is a data-driven, outcome-led sale. Those who master selling outcomes will not only close deals in a value-based care world – they’ll also deepen customer relationships, making themselves invaluable as healthcare partners.


4. Tools and Methodologies for Demonstrating ROI


If outcomes are the “what” of value-based selling, ROI is the “so what” – translating clinical improvements into economic terms. Healthcare providers, especially finance and procurement departments, increasingly require rigorous ROI (Return on Investment) analyses before green-lighting a purchase. To succeed, MedTech companies need to equip their with tools to demonstrate that ROI in clear, compelling ways.


The ROI Calculator – A Sales Team’s New Best Friend: One practical tool gaining popularity is the interactive ROI calculator that quantifies the value of the solution.[6] This is often an Excel model or web-based app where the customer can input their own data (e.g. number of procedures, current complication rate, cost per infection, etc.) and see the projected savings or revenue gains from the product. A well-built ROI calculator goes beyond simple cost vs price; it includes all relevant factors:


  • Cost Savings: e.g. reduction in complication treatment costs, shorter length of stay, fewer readmissions or ER visits, less overtime for staff – all translating to dollars saved.

  • Revenue Enhancement: e.g. ability to handle more patient volume due to efficiency (hence more revenue), or capturing market share because of better outcomes/experience.

  • Avoided Penalties: In a value-based world, hospitals face penalties for things like high readmission rates or hospital-acquired infections. If a device reduces these, it helps avoid lost revenue.

  • Intangible or Long-Term Benefits: Some benefits are harder to monetize (e.g. improved patient satisfaction or clinician morale), but wherever possible, the calculator can at least acknowledge these or convert them into proxy metrics.


It’s much more persuasive when the numbers come from the customer’s own data input, as opposed to a generic claim. As The Brand Leader notes, a polished ROI calculator can set you apart from competitors and becomes “a powerful tool for getting your product into healthcare spaces”​. Many buyers now expect it as a basic part of due diligence.


Data-Driven Frameworks: Beyond calculators, MedTech companies are adopting formal cost-benefit analysis frameworks and value communication methodologies. Health economics and outcomes research (HEOR) teams within companies build models like budget impact analyses (to show how a new device affects a hospital’s budget over time) and cost-effectiveness analyses (maybe using quality-adjusted life years or other health economic metrics if relevant for payers). While such detailed analyses are often seen in pharma for reimbursement dossiers, they are increasingly used in MedTech, especially for big-ticket technologies. For instance, if you sell a surgical robot, you might provide the hospital a comprehensive cost-effectiveness study showing how the robot reduces complications and improves surgical precision enough to justify its cost over X years.


Value Propositions and Messaging: Alongside hard-number tools, the sales and marketing teams must refine their value messaging framework. This is essentially the storyline that connects the clinical outcomes to financial outcomes in a logical flow. One common framework is the “so what” chain: Feature → Benefit → Outcome → Economic Impact. For example: “This monitoring system detects patient deterioration 1-2 hours earlier (feature), enabling faster intervention (benefit), which has been shown to reduce ICU days by 10% (outcome), saving approximately $500 per patient in costs (economic impact).” Training salespeople to deliver such messaging ensures consistency and clarity in conversations and in RFP responses.

Demonstrating ROI in MedTech value-based selling is both art and science. The science comes from solid data, analytics, and financial modeling to back up claims. The art lies in communicating those findings in a compelling, user-friendly way that resonates with non-technical stakeholders. Many successful MedTech deals today are won or lost based on the perceived ROI – so having superior tools can directly translate to competitive advantage. As one sales enablement expert put it, “the most successful companies are now deploying flexible ROI tools developed around specific products” to win in this value-driven market​.[7] In value-based selling, value must be proven, not just promised.


5. A Collaborative Approach: Partnering with Providers, Payers, and Regulators


Value-based selling is part of a broader ecosystem shift. The most effective MedTech companies actively collaborate with stakeholders across the healthcare value chain to make value-based models work. This means engaging not only with hospital customers, but also with payers, regulators, and even patient advocacy groups.


Co-Developing Solutions with Providers: Forward-thinking MedTech firms are working hand-in-hand with healthcare providers to design offerings that truly address provider needs under value-based care. For example, device companies have partnered with hospitals to create clinical registries and data-sharing agreements that track outcomes for patients using their technologies. [4] A notable case is the Transcatheter Valve Therapy Registry in the US, which is a partnership among device makers (like Edwards Lifesciences, Medtronic, Abbott) and professional societies and government agencies, to monitor patient outcomes for a new heart valve technology​. [4] This collaborative registry became a model for continuous learning and real-world evidence generation – benefiting industry (with evidence to support their product’s value), clinicians (with feedback on patient outcomes), and regulators (with post-market surveillance data). MedTech sales teams can leverage such collaborative data to strengthen their value propositions.


Risk-Sharing and Innovative Contracts: Many MedTechs are collaborating with payers and providers on innovative payment models that share risk and reward. These models are putting some of the manufacturer’s revenue at stake based on outcomes – which assures the provider that the company stands behind its value claims. For instance, Medtronic has been a leader in risk-sharing contracts: it has around 1,000 contracts for its TYRX antibacterial sleeve (a device used to prevent cardiac implant infections) where Medtronic reimburses hospitals if an infection occurs despite using the product​.[8] On the payer side, Medtronic’s partnership with UnitedHealthcare on insulin pumps (making Medtronic the preferred pump supplier) was predicated on demonstrating cost savings of ~20-30% for the insurer’s diabetic patients. In some cases, these deals involve exclusivity or preferred vendor status in exchange for value guarantees, illustrating a tight payer-manufacturer collaboration.


Such risk-sharing arrangements require careful negotiation and legal navigation, but they embody a collaborative spirit: everyone has skin in the game to achieve better outcomes at lower cost.


Engaging Regulators and Payers Early: Unfortunately, regulatory and reimbursement frameworks sometimes lag behind innovation. MedTech companies thus engage with regulators and payers early in the development of new value-based offerings. By working with government health agencies or insurance providers in pilot programs, companies can help shape the environment to support their solutions. For instance, some companies have lobbied for or contributed to new reimbursement codes (ICD-10 or DRG codes) for innovative technologies that reduce overall costs​. [8] By aligning with payers’ goals (e.g. a device that keeps patients out of the hospital aligns with an insurer’s goal to reduce claims), companies can sometimes negotiate coverage decisions or value-based payment policies that favor their solutions.


Training and Education Partnerships: Collaboration can also take the form of joint education initiatives. MedTech firms often sponsor training for healthcare providers on new value-focused approaches – for example, helping a hospital set up an enhanced recovery after surgery (ERAS) program that complements the use of the company’s surgical products. By sharing best practices and protocols (often developed from global experience), the company helps the provider achieve better outcomes, which in turn validates the value of its products.


Multi-Stakeholder Forums: On a broader scale, MedTech organizations (and industry bodies like AdvaMed or MedTech Europe) are bringing stakeholders together in forums to advance value-based healthcare. By actively participating in these discussions, individual companies signal their commitment to being part of the solution. They can also stay ahead of trends (for example, understanding what procurement officials say they need, or what outcomes matter most to payers in the next year).


In all these ways, collaboration is the secret sauce that turns value-based selling from theory into practice. MedTech companies cannot impose value-based models; they have to build them in partnership with those who deliver and pay for care. The payoff for getting it right is a sustainable, defensible business model – one where the interests of the MedTech company and its customers are truly aligned around better patient outcomes and smarter economics. In a successful value-based partnership, the hospital improves care and saves money, the payer spends more efficiently, the patients are healthier – and the MedTech supplier gains market share and loyalty as a trusted ally. That’s the definition of win-win in healthcare’s new era.


Industry Insights: How Leading MedTechs Are Embracing Value-Based Selling


Let’s examine how some MedTech companies are already implementing value-based selling and adapting their strategies – offering real-world lessons for others:


  • Medtronic: A standout example, Medtronic has been at the forefront of value-based healthcare initiatives. It formed an entire division called Integrated Health Solutions (IHS) to provide services beyond devices, such as managing cath labs or operating rooms for hospitals with outcome-based contracts. Medtronic’s risk-sharing deals are among the most aggressive in the industry. They’ve signed hundreds of outcomes-based agreements, from cardiac implants (the TYRX infection prevention guarantee) to diabetes care (shared savings with payers for insulin pump patients). [8] Medtronic publicly defines value-based healthcare as improving patient outcomes per dollar spent,[9] signaling this philosophy is core to their mission. Insight: Medtronic illustrates that big players can turn value-selling into enterprise-level strategy – aligning product development, services, and sales contracts all around delivering outcomes.

  • Johnson & Johnson (DePuy Synthes): J&J’s device arm has also jumped into value solutions, notably in orthopedics. They launched DePuy Synthes Advantage, a program offering a suite of services to joint replacement customers – from patient education materials to digital surgery planning tools and outcomes tracking software. The idea is to supplement the implant with surrounding support to improve the overall episode of care (as seen in Exhibit 1 earlier). Additionally, J&J as a whole has been vocal about outcomes-based pricing in healthcare, leveraging its pharma division’s experience with value-based contracts for drugs to inform device business models. Insight: Even companies traditionally focused on product innovation are building service layers and contract flexibility to meet value-based demands.

  • Zimmer Biomet: This orthopedic giant introduced Signature Solutions, combining its implants with data-driven services. A flagship offering was an “online rehabilitation” program – essentially a telehealth physical therapy service bundled with knee or hip replacements. [10]By ensuring patients do their rehab exercises at home (via digital coaching, and now with its latest brilliant publicity move to name Arnold Schwarzenegger their Chief Movement Officer), Zimmer Biomet helps improve recovery outcomes, which makes their implants more attractive under bundled payment models where post-acute care quality is critical. Zimmer’s approach teaches an important lesson: sometimes augmenting your product with a digital service directly increases its value in the eyes of outcome-focused buyers.

  • Philips & Siemens Healthineers: The big imaging and equipment firms have pioneered models like “Managed Equipment Services” or “Device-as-a-Service”. Philips, for example, signed an 11-year partnership with a health system to provide imaging equipment on a pay-per-use basis, with provisions for uptime and performance guarantees​. [8] Rather than selling an MRI machine, they essentially lease it and charge per scan, while committing to maintain performance. Siemens Healthineers similarly has contracts where they manage a hospital’s radiology department, providing equipment, software, and even staff training, for a fee tied to outcomes like diagnostic throughput and report turnaround times. These approaches blur the line between vendor and partner – the company takes on broader responsibility and is compensated based on results. Insight: In some segments, the ultimate value-based sale is selling an outcome as a service, not a device at all. This can lock in long-term relationships and revenue, though it requires the company to be capable of delivering services reliably.


Competitive Benchmarking: MedTech executives should keep an eye on such competitor moves. If your competitor is offering a money-back guarantee and you are not, their value pitch may appear more credible. If they provide a comprehensive outcome-based service and you offer just a widget, you may be seen as less strategic a partner. However, not every company needs to mirror every move – the key is to identify what specific value levers make sense for your portfolio and customers. For example, if you have market-leading clinical data, use that to justify an outcomes-based premium price (perhaps with a guarantee to back it). If you lack head-to-head superiority, maybe a risk-share contract can make customers comfortable to choose you. A KPMG report on MedTech sales noted the risk of “legacy sales models” – companies that stick to old ways (focusing only on physician relationships, selling on features and price) are increasingly losing out.[11] Embracing some form of value-based selling is becoming table stakes to be among the winners.


These examples provide evidence that value-based selling is not just buzzwords; it’s being operationalized in contracts and business models right now. The takeaway for any MedTech firm not yet on this train is clear: adapt or be left behind. 


Conclusion: The Future of MedTech Sales is Value-Driven


The evolution toward value-based selling in MedTech is not a fad – it’s a fundamental shift in how the industry will operate moving forward. MedTech executives, marketers, and sales professionals must internalize that selling value is now as important as the product itself. This journey involves upskilling teams to speak the language of outcomes and economics, developing tools and evidence that substantiate your claims, and fostering collaborations that align everyone’s incentives around patient outcomes.


Yes: this is a challenging transformation. It requires breaking down silos between sales, marketing, clinical research, and health economics departments. It means engaging in longer sales cycles and sometimes complex contracts. But the payoff is a more resilient business that wins customers not by the lowest price or flashiest gadget, but by being a trusted partner in improving healthcare delivery. When you help a hospital achieve its goals – better patient health, operational efficiency, cost control – you cement a relationship far deeper than a vendor-client exchange. You become a strategic ally in the value-based care era.


Those clinging to old models face eroding margins and commoditization as healthcare providers tighten the screws on anything that doesn’t demonstrably add value. MedTech leaders should ask themselves: Is our sales approach truly centered on customer outcomes? Are we prepared to put our own skin in the game (through guarantees or risk-sharing) to prove we deliver results? Have we equipped our team with the right data and ROI stories? If not, now is the time to act.


Finally, remember that value-based selling is ultimately about a mindset of empathy and partnership. It’s seeing the world from the customer’s eyes – the hospital CEO worried about finances, the clinician striving for better patient results, the procurement manager accountable to both – and ensuring your solution makes each of their lives better. It’s about moving from “Here’s what my product does” to “Here’s how we can succeed together.” That is the art of value-based selling in MedTech.


Call to Action: If you’re a MedTech professional reading this, I encourage you to reflect on where your organization stands on this path. Are you leading with value in your customer engagements? What obstacles are you facing in the shift to value, and how are you overcoming them? I invite you to share your experiences, ideas, or questions in the comments – let’s learn from each other. And if you need guidance crafting a value-based selling strategy tailored to your business, feel free to reach out directly. As the healthcare landscape continues to evolve, those who adapt will thrive. Let’s connect and ensure your team is equipped to sell not just devices, but outcomes and impact. The future of MedTech belongs to the value leaders – now is the time to position yourself among them.


 
 
 

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