Develop a smarter framework for evaluating new healthcare technologies
In the world of medical devices and technology, purchasing has become increasingly complicated as innovations are introduced at a rapid rate. In 2025, the FDA authorized 3,238 new 510(k) medical devices—that’s more than half of the 5,640 total marketing submissions it approved. The number of authorized devices was 4.2% higher than in 2024.
“Health systems can no longer contract their way out of cost,” says Aashish Shah, M.D., J.D., SVP & CMO of HealthTrust. “They need to think through the addition of clinical standards and backstops.”
Understanding how to evaluate new products rapidly coming to market can be a challenge and the implications of getting it wrong are costly. Integrated delivery networks (IDNs) can evaluate new technologies and products internally, pay for a third-party analysis or rely on HealthTrust’s multiple-stakeholder team. With any approach, it’s important to identify the right evaluation framework and questions to ask before starting the process.
“Providers need clinical backstops. You can no longer contract your way out of cost alone.”
Aashish Shah, M.D., J.D.
“Healthcare providers need to understand what the technology does, how it helps with margin pressure or key service lines and how it impacts the patient,” explains Stephanie Thompson, PharmD, MBA, Vice President of Performance Solutions at HealthTrust. The idea is to refrain from adopting technology that is innovative just for innovation’s sake.
Why it matters
Providers often want the latest and greatest equipment, like a high-tech surgical robot or ablation technology. But that technology must provide the right benefits; it should lead to measurable, improved patient outcomes or better throughput.
“We can’t get in the way of technology—it’s advanced medicine,” comments Terence van Arkel, MBA, CPA, CFO of HealthTrust Performance Group. Instead, it’s important to try to get control over it. “It’s expensive and providers are focused on the way it enters into their spend.” Hospitals often experience conflicts over adopting new technologies, based on role—operator or physician. Some argue it will bring new patients to their facilities, but sometimes it does so at a high cost.
Standardizing evaluations and approvals at the enterprise level is critical, if the process is multidisciplinary. “In many cases, reimbursement frameworks lag behind emerging technologies or remain undefined. Without disciplined evaluation of margin impact, utilization and total acquisition cost, health systems risk adopting innovation that erodes performance,” explains Chris Stewart, Vice President, Performance Solutions at HealthTrust. “That is why a structured review process assessing clinical, operational and financial implications is essential before any new technology is adopted.”
Medicare may be responsible for more than 50% of an IDN’s revenue, with Medicaid providing an additional 10%. “Those rates are dictated. Unfortunately, the reimbursement sometimes lags two to three years after a technology is introduced,” shares van Arkel. New technologies usually raise procedure or treatment costs, so if reimbursement lags, health systems need strong justification to adopt them or they must set guardrails around their use.
What IDNs should know
Before buying new technology, providers should consider stakeholder input—not only from the clinicians using it, but also from teams that include Operations, Supply Chain, Finance and Facilities. Products should be looked at holistically to determine the effect on patient outcomes; how it compares to existing technologies, including a cost/benefit analysis; and its place in the IDN as well as in the service line’s overall marketing plan.
Noel Hodges, HealthTrust Supply Chain CEO, suggests the evaluation should begin with questions, including:
- Is there a way to objectively evaluate the impact it will have?
- What did the clinical studies or pre-FDA approval reveal?
- Will it do what it says it’s going to do and can that be objectively measured against current practices?
Data usage is another concern. New technology increasingly relies on and ingests real-world data, which requires awareness, compliance and governance. “Anybody in a health system who is responsible for new technologies needs to have a high awareness that part of a supplier, manufacturer or provider’s interest is in the data associated with that technology, device or therapeutic,” Dr. Shah explains. That includes clinical and patient outcomes.
Some approved devices are subject to post-marketing trials and manufacturers have an interest in tracking usage and outcomes. “Products such as implants, cardiac devices and robotics increasingly have AI integrated into them. Manufacturers can then learn and improve based on patient experiences,” Dr. Shah adds. While there may be no ill intent, he suggests that IDNs should be wary of data capture and mining. HealthTrust continues to improve negotiations around data protections with its contracted suppliers.
How to approach new technology discussions
A great way for providers to frame an evaluation is by asking what problem they are trying to solve, says Hodges. It could be related to physician, clinician or patient satisfaction. It could be that robotic surgery technology improves healing time over traditional surgery, allowing faster patient discharge. Or maybe it has a better safety profile than prior technology generations. Cost may be a primary driver, Hodges explains, but if a technology improves throughput so that an IDN delivers more care with the same resources, that benefits operations and productivity.
With new technologies, Dr. Shah indicates it is often difficult or impossible to find head-to-head trials of efficacy. The new norm for evaluation is comparative effectiveness. “That’s one reason members find value in involving HealthTrust. The role of our Performance Solutions team is to provide strategic subject matter expertise from clinical, safety and financial perspectives,” he says. “We’re not going to decide for you,” van Arkel adds, “but we provide full transparency about the options so you can make an informed decision.”
HealthTrust marries the tacit knowledge of subject matter experts within the membership (service line experts, operational leaders and Physician Advisors) and explicit knowledge from our expansive technology portfolio (costing data, category utilization and operational impact metrics) to best understand new technology positioning. “Our goal is to gather the intelligence and synthesize it so the decision-makers and influencers within our membership can use it in their facility discussions to align around the next best action to take from both a clinical and business strategy perspective,” says Thompson.
Van Arkel adds that sales representatives often drive competitive pressure for physicians to be first-to-market using a new device. “However, there is a host of factors that go into adequately evaluating a technology—namely safety and outcomes. Hospitals worry about losing physicians and revenue,” says van Arkel. “We help providers by taking the emotion and pressure out of vetting new technology. Performance Solutions can assist in determining if a device is the best choice for their facility and for their patients.”
YOUR TURN
Bring structure to your next technology decision. Connect with HealthTrust’s Performance Solutions team by reaching out to your HealthTrust Account Manager or emailing performancesolutions@healthtrustpg.com
