* The hospital reform in Germany has officially come into effect at the beginning of 2025. However, how the reform will be operationalized and implemented in practice remains uncertain. This article provides recommendations based on the information available as of February 2025. We recommend regularly consulting official sources to stay informed about new developments.
As Germany’s hospital reform unfolds, it’s not just hospitals that must adapt. Medtech companies are facing a critical moment to recalibrate their strategies. In our first article, we outlined the key changes brought by Germany’s hospital reform and explored their implications for medtech companies, highlighting why adapting to this new landscape is essential.
In this article, we outline actionable recommendations and key measures to help medtech companies stay ahead of the curve. From refining product offerings to rethinking go-to-market strategies, we leverage Simon-Kucher’s expertise to help you navigate these changes and unlock new growth opportunities.
Adapting your commercial strategy to landscape changes
The German hospital reform reshapes the hospital landscape by increasing hospitals' financial autonomy, driving hospital specialization, and facilitating a patient shift toward outpatient care. Changes in hospital demand, product requirements, bargaining power, and incentive schemes are just a few of the direct commercial implications that call for action from medtech suppliers. To stay competitive, medtech companies should adapt accordingly, with a particular focus on the following key issues:
1. Understanding the new hospital landscape
- Understand new healthcare provider landscape
Consider structural landscape changes due to the introduction of service groups and Level 1i facilities. Investigate changes on a hospital level due to quality criteria per service group, which determine the material, personnel, and structural requirements a hospital must uphold. - Assess current and future procedure landscape
Examine the anticipated shift of services to the outpatient setting, driven by the introduction of new Level 1i facilities and a retention lump sum for hospitals. Analyze the resulting distribution of inpatient versus outpatient services and model the projected development of procedure volumes both at the hospital level and across the broader provider landscape. - Estimate facility budget allocation
Consider new funding structures of service group hospitals as well as the newly introduced funding structure of Level 1i facilities. Anticipate procedure allocation and determine the financial strength of facilities as well as budget set-ups.
2. Evaluate new product and service opportunities and adapt accordingly
Based on increasing customer specialization and the introduction of stricter quality criteria…
- Explore the possibility of offering specialized value-added services and solutions
Bear in mind that hospitals now rather aspire to become best-in-class specialists instead of well-versed agnostic healthcare service providers. Specialized, value-added services and solutions that complement an existing portfolio will likely drive a competitive edge and benefit the market positioning for specific service groups. - Consider PoC targeted offerings for Level 1i hospitals
Examine the degree to which Level 1i hospitals will act as a catalyst for the shift toward outpatient care, which in turn creates a strong demand for point-of-care (PoC) capabilities. This potential shift presents an opportunity for medtech players to meet such evolving needs. - Assess opportunities that enhance (workflow) efficiencies
Consider shifting focus to developing digital workflow solutions. Digital and telemedical solutions that drive operational efficiencies will allow healthcare facilities (service group and Level 1i hospitals) to retain larger shares of case-independent budgets (e.g., monitoring solutions reducing FTE burden).
3. Rethinking pricing and market access strategies
- Update customer segmentation and targeting
Assess the anticipated specializations of hospitals early on, which will likely make it possible to capitalize on potential first-mover advantages against competitors. Additionally, it's important to prioritize - or deprioritize - accounts based on strategic considerations, such as the anticipated services offered, the alignment with both current and future product portfolios, and the financial strength of the accounts. Finally, evaluating the relevance of Level 1i hospitals to the product portfolio is crucial, particularly regarding the growing emphasis on outpatient care. - Review current price models and discounting schemes
Consider changes in case volumes due to service group assignments of hospitals and the push into the outpatient setting. As a result, current discounting schemes might also need to be adapted to reflect this new reality. Failing to do so can otherwise result in a disconnect between customer performance and effective end-customer price levels.
4. Transforming sales and marketing approaches
- Revisit sales materials and value communication
Assess to which degree structural shifts will alter the priorities of key decision-makers and hospitals as they adapt to new regulations and financial models. This will make it essential to update sales materials and value communication, ensuring they address evolving stakeholder needs. Redefining the value proposition by emphasizing patient outcomes and adaptability to new care models, such as outpatient care, will be crucial for maintaining a competitive advantage and ensuring the relevance of products and solutions. - Refine current sales set-up
Revisit the current sales setup to better align with changing customer demands, given the evolving customer landscape and the shift in procedure volumes. This includes assessing the allocation of key account managers (KAMs), particularly for service group hospitals, and reviewing the structure of sales team incentive schemes, such as volume thresholds, to ensure they are still relevant.
Proactive adaptation is key
The German hospital reform presents both challenges and opportunities for medtech companies. While increased specialization, budget changes, and outpatient care shift will disrupt traditional business models, they also open avenues for innovation and strategic partnerships. Companies that anticipate these changes, tailor their offerings, and align with the evolving hospital ecosystem will be best positioned to thrive in the new healthcare landscape. Simon-Kucher’s medtech experts are here to help. Our expertise in value-based selling and strategic partnerships ensures companies can effectively align with new healthcare demands. Don’t wait to future-proof your business.
Get in touch with our experts today to develop a winning strategy.
Thanks to Henrik Ekman for his contributions!