In February, Oticon announced a significant shift in its managed care product portfolio strategy. The company outlined its decision to reserve its newest innovations exclusively for non-managed care patients, emphasizing the importance of personalized fittings by licensed hearing care professionals.
Disagreement with UnitedHealthcare
In a communication this week sent to hearing professionals and partners, Oticon Inc. President Gary Rosenblum highlighted the company’s decision not to offer its latest technology to UnitedHealthcare Hearing due to concerns over professional service valuation.
This strategic move emphasizes Oticon’s commitment to supporting hearing care professionals amidst declining managed care reimbursements. The letter urges HCPs to consider Oticon’s stance and underscores the company’s support for independent practices in navigating market challenges.
The text is available below (or click here):
Dear Valued Provider & Partner,
Our Oticon strategy has always focused on launching best-in-class technology, high-quality innovation, and you, the hearing care professional (HCP). We believe in what you do, and we want all HCPs to have ample time to provide the best patient care possible, including robust counseling services, freedom of choice, and long-term follow-up services.
Recently, Oticon decided not to offer our newest Oticon Intent™ technology to UnitedHealthcare Hearing (United), because we do not believe United adequately values your professional services and the life-changing outcomes you provide when utilizing our newest innovations. As we look towards the future, we are concerned that the decline in managed care product reimbursement and HCP professional fees will ultimately result in diminished patient satisfaction.
Our proposal to United would maintain our broad line of cutting-edge Oticon solutions, including Oticon Real™, while also offering our new Bernafon brand, a robust new platform with exceptional value and state-of-the-art technology across all price points. United disagreed with our thoughtful strategy and has removed ALL Oticon products from most of their formularies.
We are strategically committed and remain intensely focused on developing world-class leading solutions and supporting our HCP partners. Accordingly, Oticon stands by the decision to exclude our newest innovation, Oticon Intent, from UnitedHealthcare Hearing’s formularies. We want you to have the best opportunity to differentiate yourself in your community with ground-breaking technology in combination with your professional care.
If you share our strategic view on innovation and the best HCP care, we ask for your consideration in two areas:
- Consider recommending Oticon and our newest Oticon Intent™ technology as your premium brand of choice, as it is not available to any United managed care patients;
- Consider asking all other hearing aid manufacturers to reconsider their strategy of launching their newest products into managed care, while simultaneously launching them to HCPs in the private, non-managed care market.
Oticon’s strategic focus on innovation and best-in-class HCP care, along with our past decision not to launch an OTC device, differentiates Oticon as the only manufacturer solidly standing firm for the Independent practice. Oticon wants all of its partners in hearing healthcare to not only survive, but to thrive in a challenging market, where we see too many Independent practices struggling with managed care and working too hard to maintain financial stability in their practices.
Thank you in advance for your consideration. Please feel free to contact me at [email protected] if you have any questions or want to provide any feedback.
Sincerely,
Gary Rosenblum
President, Oticon, Inc
Source: Oticon
