How does pricing affect overall demand for healthcare technology solutions?
Healthcare providers are facing decreasing margins and increasing costs. That’s not a secret. However, the pricing of healthcare technology doesn’t have to be a barrier to purchase. It’s all about positioning. Find the real problem or solution that the software provides, like revenue generation or reducing no-shows/cancellations. Show that ROI to the prospective customer/organization. As long as the pricing is within reason and there’s a positive ROI for the clinic, it shouldn’t be an issue.
But other factors could be hindrances:
- data migration/integration
- hardware requirements
Be aware of these potential obstacles and be able to address them during the sales conversations. That being said, pricing doesn’t need to be a barrier if positioned well with a positive ROI – just make sure you consider all aspects when presenting your healthcare tech solution to a potential buyer.
The Role of Pricing vs. Positioning for Healthcare Technology and Software
In the healthcare industry, technology has always played a crucial role in improving patient care and enhancing operational efficiency. However, with the rising costs of providing care and decreasing reimbursement rates, many providers are feeling the financial squeeze. Let’s discuss how pricing affects overall demand for healthcare technology solutions like software or tools.
The Impact of Pricing on Healthcare Technology Demand
As margins continue to decrease in private practice due to factors such as declining reimbursement rates and increased administrative burdens like preauthorizations, it’s no surprise that providers are cautious when considering new tech solutions. Despite these challenges, pricing does not necessarily have to be a barrier or hindrance to adopting healthcare technology. It all comes down to positioning and demonstrating value.
In a previous video discussion, I mentioned that presenting tech solutions as cost-saving measures might generate some traction among potential clients. However, it is more effective if you can identify the specific problem your product addresses – whether it’s revenue generation, visit capture improvement or cancellation reduction – and show its return on investment (ROI) for clinics.
If your software solution offers a positive ROI within reason – say if it costs $100 per month but brings in or saves an additional $300-$400 per month – then pricing does not need to act as an obstacle for adoption by clinics. The key is being specific about the ROI so decision-makers can clearly see why investing in your solution makes sense financially.
Potential Barriers Beyond Pricing
While having reasonable pricing with clear benefits is essential for attracting buyers of healthcare technology solutions; other factors may still present challenges during implementation:
- Data migration & integration: Can existing systems integrate with the new software? Will clinics need to pay for transferring data or inputting new information?
- Training: How much training will be necessary, and will clinics need to take time off or pay staff members (administrators and clinicians) to learn how to use the software?
- Maintenance: What kind of ongoing maintenance is required for your solution? This may include updates, bug fixes, customer support, etc.
- Hardware compatibility: Does your software have specific hardware requirements that could cause issues down the line? For example, if it only works on Android devices or Mac computers. A real-life case study involved a client who wanted to upgrade their computers from Windows PCs but had an existing EMR practice management system that was not compatible with Macs. They ultimately had to switch solutions due in part to this hardware limitation.
The Bottom Line: Demonstrating Value Matters Most
All that being said, while pricing can undoubtedly impact overall demand for healthcare technology solutions like software tools; it does not have to act as a barrier if positioned well with clear benefits demonstrated in terms of ROI. By focusing on identifying key problems that your product addresses and showing its positive financial impact upfront – along with addressing potential barriers during implementation – you can create compelling reasons for decision-makers in private practices and other medical settings alike why investing in your solution makes sense both operationally and financially.
What things do you think are deal-breakers when considering buying healthcare technology or software?
For more content like this, check out our Insights Page and check out The Better Outcomes Show. Or if you want to humanize healthcare through your business or organization, learn how Rehab U Practice Solutions can help here! You can also schedule a call with Rafi to discuss your company’s positioning strategy and brainstorm a business development plan here. Check out Rafi’s latest book, Better Outcomes: A Guide to Humanizing Healthcare, on Amazon!
Rafael E. Salazar II, MHS, OTR/L (Rafi) is the Principal Owner of Rehab U Practice Solutions and the host of The Better Outcomes Show and the author of Better Outcomes: A Guide to Humanizing Healthcare. His career trajectory includes 10+ years of experience in healthcare management, clinical operations, programmatic development, marketing & business development. He even spent some time as an Assistant Professor in a Graduate Program of Occupational Therapy and has served on numerous boards and regulatory committees. He has worked on projects ranging from patient engagement initiatives to marketing communication campaigns to a multi million dollar project assisting the State of Georgia's Department of Behavioral Health and Developmental Disabilities transition individuals out of state institutions to community residences. His work on Telehealth has been discussed in Forbes.
Today, Rafi helps innovative healthcare companies like technology startups, platforms, and SaaS companies develop effective positioning strategy and business development plans through his consulting work. He also leverages his experience as a professor and academic to speak and train on the topics around humanizing the healthcare experience. In addition, Rafi also owns and operates ProActive Rehabilitation & Wellness, a multidisciplinary outpatient clinic treating patients with musculoskeletal pain.
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If you are an innovative healthcare company looking to humanize healthcare through direct service delivery, technology, a device, or software, then reach out. We'd love to talk with you about how Rehab U Practice Solutions can help.
What we can help you do:
✅ Clarify your product, service, or organization's positioning...
✅ Identify what is most valuable and least valuable to your targeted healthcare stakeholder...
✅ Develop a Market Penetration Roadmap to align your company's value proposition with your targeted healthcare stakeholder to develop a bottom up marketing strategy...
We help you not only craft your positioning strategy, we help you identify your highest value offer for your target audience, align that value with your market, and help you develop a business development system that leverages insights from market data & industry-specific resources to enable your business development team to effectively drive business for your organization.
In short, we help your whole organization become focused on the most important thing in healthcare: people – the people who work for your organization, and the people who your organization treats or serves.