Healthcare Heads > Economics > Cost and Benefit Calculation > Deep Dive

Why do you need to calculate the cost and benefit of your product?

Why is it reasonable to prepare the economic values of your product for your customers?

Purchasing decisions in German hospitals are no longer made by physicians alone. The persons responsible of the hospital administration are involved in the decision process, too.

Especially since the introduction of the G-DRG-system, the profession of medical controlling has been established in the German hospitals. On the one side, they are responsible for the correct documentation of the different services and procedures and organize the appropriate billing via the G-DRG-system. On the other side, they transfer information on costs and tariffs for the purchasing and finance departments and the hospital management and therefore influence the hospital’s strategic focus and purchasing decisions.
Without the transparent presentation of costs, reimbursement, profit contribution and possible earnings, products will no longer be introduced in German hospitals.
The clinical benefits associated with your product are indispensable to patients and physicians, but not sufficient to convince all participants in the sales negotiations.
With these arguments, you can mainly convince from the medical perspective.

The economic values of a product are essential – even often not clearly obvious to the customer or the manufacturer.
This is related to the complex remuneration system (G-DRG-system) in Germany.
For the overhead costs of the German hospitals, there detailed costing data which are available as a benchmark and serve as an orientation/guideline for the hospitals. These data, their special features and the dual hospital remuneration - with the financing of investment costs by the federal states on one side and the financing of maintenance resources via the G-DRG-system by the health insurances on the other - make a special preparation of the economic data – which directly linked to the therapies and products - for hospitals reasonable and necessary.
The cost transparency that was introduced with these data into the German healthcare system is one of the reasons for the cost sensitivity and the special importance of economic data in the context of purchasing decisions in German hospitals.
Hospitals in Germany are now used to get presented clinical and economic values together.
In this case, it is of advantage, to use dynamic tools, with which individual economic scenarios for hospitals can be represented and designed.
Healthcare Heads supports you to transfer your clinical values into economic values and  helps you to understand the hospitals’ perspective and transforms your data into tools for their dynamic representation.
This information can be used for you as part of strategic decisions as well as for operational projects and sales conversations.
Do not hesitate to contact us to have a non-binding first discussion.


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