Genicon Case

New medical devices entering the market affect prices. As such, analyzing the price elasticity of supply 〖(E〗_s) and demand (E_p) is imperative. Measures in elasticity are chiefly valued because they center on the comparative degrees of changes rather than the absolute (Ringel et al, n.d.). Depending on geographic region, total hip replacements in 2013 tallied from $4,400 to $17,301 (i.e. average of $10,850.50) (BCBS, 2015). In 2010, a total of 2.5 million Americans underwent total hip replacement (Kremers et al, 2015). If J&J markets a new artificial hip that lowers the overall average cost by five percent (e.g. $10,307.98) while increasing overall supply by ten percent (e.g. 2.75 million), the price elasticity of supply is two. Because the supply is

Globalization in healthcare is a topic that has been the subject of many debates worldwide. While practically the entire world is becoming a global village due to globalization, the healthcare industry was considered to be invulnerable to this trend. This was attributed to the fact that healthcare is a service industry, where service is delivered on area of purchase. However many developments not only in the healthcare industry but in the entire economical sphere as a whole have seen the aspects of globalization. As a result globalization in the healthcare industry is a common phenomenon in the contemporary world. As the healthcare industry across global boundaries becomes increasingly intertwined,

The government has trying to stop the increasing growth of spending on health care and offering different measures by pricing controlling

health care system is a multi payer system that spends 16% of its GDP (

This statistic brings focus to a trend that is seen over and over again throughout the country. Medical practices are seeking ways to upgrade and outsource in order to reduce expenses, enable them to bring in more revenue, and remain independent in what have become some tough times in the healthcare industry.

Healthcare performance is strongly dependent on the economy, and on the health systems themselves. There are many debates on the type of health care system. Insurance companies are the crucial investor that is not only demanded but also an essential priority for most societies due to some of the complex challenges in the health system, in part derived from new pressures, such as ageing populations, growing prevalence of chronic illnesses, and intensive use of expensive yet vital health technologies (Frenk, J. 2004). Government has a diverse role in the health care system. However, based on the need and preference of majorities of American societies, a system with single government control in U.S, might not be effective and qualitative in long run. The present multi payer system is more effective in health care delivery. The reform in the overall management system of government organization focusing its role on supervising and controlling the health services’ system than distributing one is necessary.

One of the main challenges regarding the growing use of medical technology in the United States is the growing costs that go along with these changes. These state of the art machines as well as new drug and biological developments come at huge costs which in turn are partially paid by patients and consumers. This has led to huge increases in the average costs of healthcare (Begay, “Technology” Lecture, 10/31/17).

One of the biggest industries in the United States is healthcare industry, which accounts for over 17.5 percent of the Gross Domestic Product (GDP) of the country. This big representation of the nation’s economic activities impacts the overall economy. In other ways, it’s also impacted by the general economy. While the health care industry continues to grow, transformational changes also continue to enforce change in its organizational structure. Change in organizational structure enables health care providers to make arrangement for the change. In this case, the overall health care providers’ advance in new medical technology (to provide the best quality services), financial system, and the entire health care service structure, rules, and regulations are changed. Hence, a health care industry is fronting a noteworthy pressure to reduce health care cost, to prepare for an influential change in how health care is provided, financed and consumed while delivering the quality care (Hicks & Jacobs, 2014, pp. 385-402).

This study has also covered the weaker aspects of the prevailing American healthcare system. The financial basis of healthcare improvement lay in enhanced business savvy on the part of the administrators and providers of healthcare. It is the lack of healthcare and business savvy that is impeding the American citizens from accessing adequate health. The American healthcare system involves socialized and privatized healthcare. The socialized healthcare system is inefficient due to lack of financial balance to support adequate care for every American.

As it relates to the textbook, this describes some of the scope of the hospitals; which refers to the range of activities which the firm performs internally, the breadth of its product and service offerings, the extent of its geographic market and its mix of businesses. But unlike with the electric company, no regulator caps hospital profits. To the extent that author Steven Brill found any consistency among hospital charge-master practices, this is one of them: hospitals routinely seem to charge 2V2 times what expensive implantable devices cost them, which produces that 150% profit margin.

Currently Brazil is the largest market for products and services for health in Latin America, with annual expenditures of approximately U.S. $ 107 billion. This figure is comparatively higher than other countries to which Genicon can expand its operations. In addition, the health expenditure showed an average annual growth of 15.6%, while GDP growth has averaged 2.4% per year for Brazil which implies a sustained growth in demand for endoscopy instruments. The figures for the healthcare market in Brazil, shows that the profile of the healthcare market of the country is comparable to the healthcare market in the United States around 1965, in terms of growth rate and a proportion of total spending. Thus, Genicon can reasonably expect to grow with the rising wave of the healthcare market.

Market entry risks such as cultural differences, competitors, legislation, transportation issues, infringement of intellectual property rights and copyright.

One disrupter for Stryker and all companies in the med tech industry will be the new Affordable Health Care Act. The Affordable Health Care Act will include a 2.3% excise tax on medical devices. For Stryker, 2.3% of their revenues is $100million dollars, which is 20% of their R&D budget. This would be a direct hit and will have a significant impact on Stryker especially since 65% of their revenues come from the United States. In 2012, U.S.

The Health care system consist of a huge organization and that has become an increasingly popular subject. There has been much debate on the best ways to implement changes that can provide more access to healthcare, better quality and reduce cost. According to Sultz and Young (2014) consuming over 17% of the nation’s gross domestic product, exceeding 2.7 trillion dollars in cost, and employing a workforce of over 16 million, it is understandable that health care occupies a central position in American popular and political discourse (p. 1). This large organization employees many individual and helps delivery healthcare services to even more people. The government along with other parties from the public and private sphere work to reform healthcare services and improve efficiency and quality in the healthcare delivery system. Many times the health care system of the United States is compared to that of other developed countries to implement certain ideas while reframing from others. In particular I will be discussing the comparison of U.S healthcare systems to that of the U.K and Sweden.

Supply, Demand, & Market Equilibrium: Appraising the price elasticity of supply* 〖(E〗_s) and demand* (E_p) of a medical device is vital. Based on geographical region, a consumer in 2013 paid from $4,400 to $17,301 for a total hip replacement (BCBS, 2015). To add scope, 2.5 million Americans undertook a total hip replacement in 2010 (Kremers et al, 2015). If J&J’s new artificial hip cuts overall cost by five percent, while increasing overall supply by 10 percent, the price elasticity of supply is two, and hence elastic (E_s > 1). Or, if quantity demanded rises 15 percent while prices decline by five percent, the price elasticity of demand is 2.72, and therefore elastic (E_p > 1). As such, the artificial hip is an elastic good. When a good is elastic, a price alteration swiftly results in a quantity demanded change (Investopedia, n.d.), and this important to any