The Center for Medicare and Medicaid Services (CMS) has proposed switching wound care reimbursement from the current pay-for-service model, in which the treating physician bills the government based on the number and type of procedures performed, to a pay-for-performance model in which reimbursement is fixed for a given diagnosis.
This change, intended to incentivize physicians to pursue the most cost-effective treatment modalities and minimize the nation’s health bill, will dramatically change the wound care market by shifting market share away from high-tech products with little demonstrated therapeutic benefit to those with more cost-effective solutions.
This article provides an overview of likely changes in the market, and highlights three companies that we believe are well-positioned to benefit from coming changes in reimbursement policy.
