Our Take
Everyone wants a product that is guaranteed to work when they purchase it, and when it comes to medical devices, it's no different.
Medical device makers are facing some interesting issues as hospitals are now asking them to prove their device works the way it should, and if it doesn't, to help defray the cost of replacing it.
Reuters explained it this way, "Hospital officials, however, are seeking even more robust performance guarantees, including pledges to cover the cost of the surgery when a device needs to be replaced. Some see the new offers as a starting point for manufacturers to begin to share more of the financial risk of procedures."
Because of low sales, medical device makers are making more guarantees to compensate hospitals for the performance of their products. “Device manufacturers that are responding to that discussion are the most progressive ones, who see the world is changing.” The costs of replacing a medical device largely fall on health insurers and patients, who sometimes recoup their expenses in court.
