Service-as-Product Solutions to Become the Powerful Tool to Achieve Competitive Advantages in Health

Servicization of healthcare with innovative Platform-as-a-Service (PaaS) and Data-as-a-service (DaaS) models are opening new revenue streams for medical device original equipment manufacturers (OEMs) and driving future sustainability. As the focus of providers shifts from treatment to diagnosis, prevention, and monitoring, PaaS and DaaS will enhance patient management and operational effectiveness.

Frost & Sullivan's market research, "Global Healthcare Service as Product Solutions, 2016," provides an overview of new solutions and services offered by medical device OEMs. It discusses market trends, drivers, restraints and challenges transforming the market with a focus on profiling top medical device companies and their strategies.

"Through new services and product solutions such as telehealth and remote patient monitoring, OEMs are striving to provide cost-effective, intelligent, intuitive solutions that are expected to improve the long-term profitability of providers, OEMs and payers," said Transformational Health Industry Analyst Brahadeesh Chandrasekaran. "However, the adoption of these technologies, services and products will significantly depend on the availability of reimbursement models."

Factors driving market growth opportunities include:

• Digitization of products, services, and care delivery models transforming the current healthcare systems and unlocking new value by displacing high-cost care providers and previously inaccessible segments;
• Increased information access, awareness, and digital health technologies empowering OEMs, providers and patients, and allowing an increase in patient participation and health self-management;
• Companies incorporating socially beneficial elements into their business models that allow providers, payers, and consumers to improve their lives in a mutually beneficial way; and
• Hospitals working toward reducing procurement costs and inpatient admissions to focus on increasing outpatient and home healthcare as a part of their cost-containment strategy and patient outcome improvement programs.

"Hospitals want to provide high-quality care at affordable costs by improving efficiencies and judicious management of manpower and resources. This is one focus area where providers need support from OEMs; it provides huge opportunities for OEMs, especially in saturated markets such as cardiac rhythm management and orthopedic implants," observed Chandrasekaran. "OEMs should turn data into actionable insights and create service-oriented future revenue streams to help hospitals provide value and efficiency."

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