For UK MedTech companies
Your device is priced against competitors, not against the clinical value it delivers
Most MedTech companies set price by benchmarking, not by health economic evidence. In an NHS environment moving towards value-based procurement, that gap quietly erodes margin on every unit sold.
Two minutes. Solva follows up with specific health economic evidencing options.
- Frequent price erosion requests from NHS procurement teams
- Difficulty in securing formulary inclusion or preferred supplier status
- Sales teams struggling to articulate value beyond features and benefits
- Loss of market share to competitors with superior value propositions, even if their product is clinically inferior
- Inability to reinvest sufficiently in future innovation due to constrained margins.
- Increased pressure on sales and marketing teams to meet revenue targets
- Diversion of resources to defend pricing rather than focus on innovation
- Reduced profitability and lower return on investment for R&D
- Foregone revenue opportunities from underpriced products
- Delayed patient access to innovative, clinically superior devices
- Suboptimal patient outcomes if lower-value, cheaper alternatives are adopted
- Perception as a 'price-taker' rather than a 'value-creator' in the market
- Erosion of brand equity and trust among healthcare providers
22% of UK HealthTech companies have removed products from sale because the price the NHS was prepared to pay was below cost (ABHI, 2024)
Source: https://www.abhi.org.uk/media/fvhmxqbi/2024-pulse-of-healthtech-survey.pdf
Frequently asked questions
Why does this problem persist?
Most MedTech companies price reactively - benchmarking against competitors rather than anchoring to clinical outcomes and cost savings. In the NHS, where value-based procurement is increasingly the norm, a device that saves theatre time or reduces readmissions can command a significant premium if the economic argument is made correctly.
What is the cost of leaving it unaddressed?
A health economic model costs £15,000–£40,000 to commission (ABHI, 2024)
This is exactly what I do with UK private practices. Answer the few questions above and I'll come back personally with where to start. Paul.