Many medtech companies now find that integrated delivery networks (IDNs) are becoming their main customers. Consolidation has created larger and more powerful IDNs, as these providers seek greater economies of scale and negotiating leverage with payers and suppliers. Continuing at the recent pace, additional provider consolidation will result in a relatively small number of IDNs controlling the lion’s share of the U.S. healthcare market. In fact, based on our analysis, within the next five years, the top 50 IDNs will control at least 50% of the market.


Today, most medtech companies’ commercial focus has been selling to individual physicians and hospitals with a geographically aligned field sales team, and IDNs have been served by a much smaller group of key account managers. The majority of resource investment and mindshare has historically been focused on the field sales teams, with less emphasis on IDNs. As decision making shifts to IDNs and they get larger and more influential, stresses begin to appear in this traditional model. To address these challenges, medtech companies must begin to transform the model of their commercial organizations from field-sales-centric to key-account-centric. Those that succeed in this transformation and build the required capabilities will emerge as the winners in an increasingly competitive and complex market.