Medical Industry Essay

Overview: Johnson & Johnson (J&J) operates in 265+ companies throughout 60+ countries, with a workforce of 126,500+ employees throughout three business segments (Johnson & Johnson, n.d.). From 2006-15, J&J’s total sales improved from $50.5 to $70.1 billion, and total net earnings climbed from $10.1 to $15.4 billion (Johnson & Johnson 1, n.d.). The medical device* segment amounted to 35.9 percent of 2015 total revenues (Johnson & Johnson 2015, n.d.). This analysis shall review the supply, demand, and market equilibrium, as well as production costs and the market structure, for an artificial hip implant.

There are three issues when it comes to the health care cost rising. The first is the rising cost in prescription drugs. The second area of rising cost is the increased technologies when it comes to the medical industry. The third problem

Firstly, we will look to making a new product that will be useful in the same sectors of the healthcare industry. Given that we will have a flexible working process and reliable equipment; we will investigate the possibility of using the same ingredients. A possible product that will be a good fit for what we currently have is a biodegradable glove. Our team will also develop a survey to determine the customer preferences for this new and potential product. On the other hand, our team will consider expanding our products to relevant healthcare companies within the entire New York state. This will be relatively tough to achieve, but it is attainable by scaling up our manufacturing process very carefully, properly accounting for transportation costs or other similar logistical expenses, and adding all the new customers (the hospitals, nursing homes and potentially others) to our clientele with enough time in-between. A potential plan is to add the hospitals in Western New York first, then add those in Central New York about 1.5 – 3 months later before adding others like Long Island and the five boroughs of New York City after a similar time

The cost of healthcare is on the rise and the demand for services has increased of required and

Competition between providers has caused physicians and hospitals to offer the most current healthcare technologies and modern, eye-catching settings has contributed to increasing healthcare costs, as well as providing unwarranted highly technical services (Shi & Singh, 2015). Renovations of the physical settings and the acquisition of expensive technologies elevated healthcare services prices to cover the additional costs of providing high technical services and attracting clients.

Demand is simply defined as goods and services that people are willing and have the ability to buy during a certain time at various prices. Demand in this study will be the request of the patient for medical services. The physicians demand estimates are focused on the recent utilization of healthcare and the delivery patterns. A current pattern of the utilization of physician services is observed as the level of services for what the U.S is willing and able to pay. The demand determinants are based on future demand trends in one of the

In 2016, the health care industry saw prices rise. Many drugs continue to go up in price and even generic brands were up nine percent in 2014. This is largely due to inflation and companies trying to figure out where to price their drugs. Many companies have also merged with other health care companies which have also caused this increase.

Throughout the past few years the healthcare industry has taken some precautions due to the recent bill passed that affect it, that being the healthcare reform or the Affordable Care Act (Kavilanz, 2010). In the past years healthcare has not been a concern of the average American, but this is changing rapidly. Though in 2014 healthcare was not among the top three concerns it did fall at number four (Cook, 2015). While at number four on the list last year it’s surely to increase in concern as the healthcare act becomes in full swing in 2015 (Cook, 2015). As Lindsay cook points out in her U.S News article on health care 2015 will be the year doctors see a pay cut and Americans without insurance see a penalty (Cook, 2015). Just like the rule of supply and demand, when the money supply of hardworking Americans decrease, the demand or concern in this case will increase.

Cost-plus pricing puts many distributors in a difficult position. Unless distributors manufacture the medical supplies they sell, they have difficulty offering competitive prices to customers while continuing to make reasonable profit margins. Applying only the cost-plus pricing method forces distributors to absorb the costs associated with holding, managing, and delivering inventory, regardless of the variations in weight, size or handling difficulties among different products. This is in addition to

There are two main measures of medical underservice in the U.S., health professional shortage areas and medically underserved areas and some special need populations. Both measures require communities to apply for designation. These designations allow the government to target resources to those determined to be most in need (Colwill and Cultice, 2003).

Customer * Material mgrs of hospitals * Healthcare professionals * Medical research institutions * Industry – hospitals, medical laboratories, non hospital

The Competition: Suppliers need to be able to keep costs down, in order to keep

over at least the last six years. The recent acceleration in the projected growth rate for

Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.

Hospitals: Hospitals that order the big-ticket items can be reviewed through internal company reports, to find out which products and equipments were