Cover: Medical Device Innovation in the Era of the Affordable Care Act

Medical Device Innovation in the Era of the Affordable Care Act

The End of Sexy

Published Feb 8, 2016

by Soeren Mattke, Harry H. Liu, Patrick Orr

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In this Perspective, the authors explore why medical device innovation has traditionally been geared so thoroughly toward improving performance, with little regard to cost. They argue that the changing incentives in the health care sector and the move to value-based payment models, accelerated by the implementation of the Affordable Care Act, will force device manufacturers to redirect investments from the spectacular toward the prudent, which they dub "the end of sexy." The authors explore consequences for manufacturers, investors, and policymakers.

This research in the public interest was was funded by philanthropic contributions from RAND supporters and income from operations and was conducted within RAND Health.

This commentary is part of the RAND expert insight series. RAND Expert Insights present perspectives on timely policy issues. All RAND Expert Insights undergo peer review to ensure high standards for quality and objectivity.

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