Pricing within the healthcare sector is a critical component of commercial success, and customers' price reflects perceived value. Aligning pricing to the product value proposition is vital. Contracted healthcare businesses, especially Medical Device organizations often structure customer pricing within contracts based on total annual or per-order volumes, length, level of commitment to buy, and several other aspects and make exceptions to policies based on several customer and business considerations. Pricing pressures, competition, and short-term initiatives to drive volume add to the potential erosion of pricing, thereby impacting the margin. New product pricing is typically based on a cost-plus methodology, especially if the products are novel or first in class. Understanding the cost structure and its evolution is a key consideration, along with understanding competition.  

Healthvalpro LLC can help analyze the status of overall pricing and help identify strategies to improve profitability by refining existing pricing strategies. We will analyze all the current offers, policies, and frameworks, such as Tiered pricing, with price volume offers, contracting across several stakeholders such as the Hospital, IDN, and GPO, and “exception” or “custom” pricing. With sales via e-commerce and multiple channels, maintaining price consistency becomes challenging and, with it, predicting overall Gross Margins. Terms and Conditions add to the commercial complexity and are often essential in driving profitability. New product pricing provides an opportunity to bolster overall margin. Healthvalpro LLC can assist you in analyzing all these aspects of comprehensive pricing and work with your sales, marketing, finance, and contracting teams to define a strategy to improve profitability, balancing commercial needs and financial expectations.