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How Incentives Are Shaping Medtech’s Future

Executive Summary

The US health care system is undergoing substantial change as payors increasingly flex their muscles to move the system from a Fee-For-Service model to an Outcomes-based model. The end result is likely to be a medical device industry comprised of fewer, larger companies working closely with hospitals and physicians to provide integrated patient care. This will impact the types of medical technology companies that will be launched and venture financed going forward. Companies that embrace and enable these industry changes will fare relatively better than those that do not.

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