Are medical directors skeptical of healthcare tech companies?

Medical device makers and healthcare tech companies often raise the same concern when preparing for commercialization: “Are medical directors skeptical of medical technology?” This question reflects the tension between innovation and adoption, as coverage decisions directly influence whether new devices reach patients. At the 2019 MedTech Conference, Baker Tilly moderated a panel with Dr. Steven Stern, Dr. Jim Cross and Dr. Lynne Milgram to explore how medical directors evaluate new technologies and what factors matter most in their decisions.

Evidence is the foundation

Panelists agreed that skepticism is not inherently negative, it is a natural response to the responsibility of making evidence-based coverage decisions. Medical directors emphasized that scientific evidence is the single most important driver. Without credible, validated data showing improved outcomes, new devices struggle to gain approval. The pressure to generate revenue and satisfy investors often pushes companies to market before robust data is available, creating friction between innovation and payer requirements.

Novelty versus necessity

The panel also noted that new devices must demonstrate genuine value, not just incremental improvements. Too often, companies position their product as a “better mousetrap” without fully acknowledging competitors or market realities. Medical directors cautioned that arrogance about novelty or an assumption that payers will embrace every new product can backfire. Devices that attempt to “be everything to everyone” may face longer approval timelines or limited reimbursement if they do not fit within established coding and billing structures.

Provider uptake challenges

Another recurring theme was the role of providers in influencing adoption. Even when coverage criteria are met, lack of enthusiasm or buy-in from physicians can hinder utilization. Medical directors highlighted that insurers are unlikely to drive adoption of devices that providers are not actively using. Companies must recognize that achieving broad uptake requires alignment not just with payers but also with the clinical community that prescribes and uses the technology.