CMS Should Follow FDA's Lead: Adopt Reforms To Facilitate Medtech Innovation
By Don May, AdvaMed
The payment environment for medical technology is changing dramatically as the healthcare system transitions from fee-for-service toward more risk-based and integrated health care delivery models. These models offer not only the promise of lower costs, but of higher quality care.
As we enter this new world order, medtech manufacturers want to partner with providers to achieve these goals. Risk-based payment and integrated care create new opportunities for technologies that help to diagnose and prevent disease, or to manage chronic illness. Devices of the future will perform double or even triple duty. [EB1] They will provide more effective diagnoses, treatments, and cures; collect real-time data that can be used by patients, providers, and payers to better manage chronic conditions and to avoid hospitalizations; and combat infections and other healthcare-associated conditions to avoid costly post-surgical complications and readmissions. These advances will add significant value to patient care.
However, where there are significant gaps in quality measures, the true value of a technology can be missed and perverse incentives can be created. The medical technology industry wants to work with providers and payers to fill those gaps. We want to ensure that the incentives offered to providers, for achieving savings, embrace the full value of innovation in patient care.
In recent years, we’ve seen significant progress on the regulatory front, including key reforms initiated by FDA and enacted by Congress, that are improving regulatory efficiencies and patient access to safe and effective new treatments and cures. But, as medical technology developers know, efficient and predictable Medicare coverage, coding, and payment processes are no less critical to our medical technology innovation ecosystem.
That’s why the Centers for Medicare and Medicaid Services (CMS) should take a cue from FDA and implement impactful reforms and efficiencies that will help support investment, innovation, and timely patient access to the best in American medicine. It’s time for America to replicate on the reimbursement front the same progress we’re starting to see on important FDA policy issues. The formula for our health system must be cost savings through medical progress, not cost savings instead of medical progress. That’s something we should all be able to agree on.
About The Author
Don May is executive VP, payment and health care delivery policy, at the Advanced Medical Technology Association (AdvaMed).