Medtronic Value Based Contracts

Medtronic Value Based Contracts: A New Standard in Healthcare

Value-based contracts (VBCs) are becoming increasingly popular in healthcare today. These agreements allow for the alignment of financial incentives between payers, providers, and manufacturers, creating an environment where better patient outcomes are rewarded with lower costs. Medtronic, a global leader in medical technology, is at the forefront of this trend with their innovative Medtronic Value Based Contracts.

Medtronic Value Based Contracts: An Overview

Medtronic`s VBCs are designed to reward healthcare providers for achieving specific patient outcomes that are aligned with the goals of the healthcare system. These contracts deliver a new approach to healthcare reimbursement which is focused on rewarding providers for delivering quality care at a lower cost.

The basic concept of these contracts is simple: Medtronic commits to the goal of improving patient outcomes, and if their devices and therapies help achieve this goal, they receive a share of the cost savings that result from this improvement. This approach ensures that both providers and patients benefit from higher quality care at a lower cost.

Why Choose Medtronic Value Based Contracts?

Medtronic`s VBCs offer several advantages over traditional fee-for-service (FFS) reimbursement models. Some of the key benefits of these contracts include:

1. Lower Costs: VBCs encourage providers to focus on improving patient outcomes, which reduces the overall cost of healthcare.

2. Greater Access to New Technologies: Medtronic`s VBCs provide incentives for providers to adopt new technologies and treatments, allowing patients to receive the latest and most effective care.

3. Improved Patient Outcomes: VBCs ensure that patients receive the best possible care and that providers are held accountable for delivering results.

4. Better Collaboration: By aligning incentives across all stakeholders, VBCs encourage greater collaboration and communication between providers, payers, and manufacturers.

Medtronic Value Based Contracts: Real-World Results

Medtronic`s VBCs have been successfully implemented in a variety of settings, delivering positive results for patients, providers, and payers alike. For example, a recent study in Europe found that a Medtronic VBC was associated with a 10% reduction in hospital readmissions for patients with heart failure, resulting in cost savings of up to €2,991 per patient.

Another study of VBCs for spinal surgeries in the United States found that these agreements led to a 67% reduction in hospital readmissions, a 22% reduction in the length of hospital stays, and a 12% reduction in overall costs.


Medtronic Value Based Contracts are a promising new approach to healthcare reimbursement that can deliver better outcomes for patients, providers, and payers while reducing the overall cost of care. By aligning incentives across all stakeholders, VBCs encourage greater collaboration and communication, leading to higher quality care and improved patient outcomes. If you`re looking for a new way to improve healthcare delivery in your organization, Medtronic`s VBCs are definitely worth exploring.

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