Company Made Medical Device That Decreased The Rate Of Infections in Traumatic Wounds
A company made a medical device that, in randomized clinical trial, decreased the rate of infections in traumatic wounds
treated in the emergency department. The hospital buyers objected to the cost of the device. Dr. Martinson developed a pro
forma which demonstrated that in uninsured patients, the device was cost saving because it prevented additional hospital losses that would
have occurred if infections had developed in these patients. The company reported that it enjoyed good adoption in hospitals
serving populations with high uninsurance rates.
New Drug Developed To Treat Diabetic Wounds
A pharmaceutical start-up developed a new drug to treat infected diabetic wounds and wanted to understand how the product could be
rationally priced. Dr. Martinson developed a value-based pricing model which demonstrated that the drug would be valued at a
relative high price because it would avert wound complications that would have cost more money than the drug.
Therapy for Incontinence Equally Effective And Less Costly Than Competitive Therapies
A medical device manufacturer developed a therapy for incontinence that was equally effective and less costly compared to a
competitive therapy. In spite of this, insurers were sometimes reluctant to cover it. Dr. Martinson developed a Markov model showing
the cost-effectiveness of the company's device compared to the competition. A paper from this study in under publication review, which
the company believes will be received favorably by insurers.
New Cardiac Arrhythmia Therapy Saves Retreatment Costs
A company made a medical device to treat heart arrhythmias using a novel method of rendering problematic tissue inactive. The new technology was more expensive for the hospital to purchase. Dr. Martinson constructed an economic model to compare the costs of the standard and new technologies that included the purchase price, the cost of re-do procedures, and the cost of complications. The reduction in re-do procedures and complications with the new technology more than offset the additional purchase price at a moderate volume of procedures. The company's account executives were able to use this information in their discussions with hospital purchasing directors.
Disease Management Program Gets Heart Patients on Medication
A large pharmaceutical company developed a new antilipemic drug (one that helps control blood lipids) and offered a coronary-artery-disease-management program to managed care organizations (MCOs) that positioned the drug favorably on their formulary. The program consisted of mailings to the MCO's physicians regarding the physicians' patients who might benefit from an antilipemic drug, and to patients regarding the benefits of antilipemic therapy. MCOs questioned the effectiveness of the program. Dr. Martinson compared the drug utilization of health plans that used the program to those that did not, including the change in utilization in the months following program adoption. The results showed that members in plans with the program were almost 3 times as likely to take the drugs as those in comparable plans without the program, and that 94% of the members who took the drugs continued taking them after 6 months. The company was successful in convincing the MCO to continue the program and position the drug favorably on the formulary.
