Medtronic vs Stryker

I currently work in the U.S. healthcare industry. The U.S. healthcare industry, defined in its broader sense for the purposes of this discussion, includes several other industries (Riggs ed., 2015). Industries that compose the larger U.S. healthcare industry as a whole would include the U.S. hospital system, the pharmaceutical industry, and various other suppliers of medical goods and services. Many of these separately defined industries within the U.S. healthcare industry would be described as being at different stages within the industry life cycle model. However, this discussion will focus on the U.S. healthcare industry as a whole. Utilizing an industry life cycle model as described by Parnell (2014), I would consider the U.S. healthcare industry in the maturity stage of the industry life cycle. This conclusion was reached by examining key characteristics within the U.S healthcare system and its history. Up until the early 20th century, the U.S. healthcare system was composed primarily of home care rendered by providers without high levels of scientific or technical knowledge compared to today’s standards. This early stage of the U.S healthcare industry would be considered the introduction stage of the industry life cycle. Parnell (2014) reports that the introduction stage of the life cycle is typically fairly short. However, in the case of the U.S. healthcare industry, this introduction stage appears to be prolonged comparative to the progression through the later

Over time, the importance of medical devices will rise. Nearly 10,000 of consumers born between 1946 and 1964 (i.e. Baby Boomers) will retire each day (Friedburg, 2016), and there is a reasonable assumption that a necessary medical device is in the Baby Boomer’s future. Many will sustain a professional career later in life; and, as such, medical device designers will need to fashion products aligned with a mature population’s lively lifestyle (Kapec, n.d.). Johnson & Johnson (J&J) is aware of the upcoming importance of medical devices, and will look at price elasticity, non-price factors, the industry as a whole and its market equilibrium, and related decisions based on the information.

Health care costs are a longstanding concern to policymakers. For years, health care spending has been rising faster than the rate of economic growth, raising the question of what factors are responsible for rising health care costs. This paper explores published articles that report results from research conducted on technological innovations in health care and its relation to rising health care costs. The cost increases have a significant effect on households, businesses, and government programs. Health care experts indicates the development and diffusion of medical technology as primary factors in explaining the persistent

One technological change that may have the largest effect on our lives today is the rapid growth of medical technology development. Three main effects that medical technology has impacted our modern society are prolonging lifespan, improving quality of health care and promoting nation’s economic growth. The three stages of medical technology are review by regulatory agencies, technology assessments by insurance carriers, and review by purchasers, clinicians, and consumers. Review by regulatory agencies is the most recognized of the three stages and is administered by the Food and Drug Administration (FDA). The FDA is responsible for protecting and promoting public health by regulating pharmaceutical products and medical devices. Each product must go through a series of approvals, clinical trials, and post market surveillance protocols in order to ensure its safety and effectiveness. www.nap.edu

Medical technology encompasses a wide range of healthcare products and is used to diagnose, monitor, and treat diseases or medical conditions that affect humans. This may included but not limited too, pharmaceuticals, vaccines, and medical equipment. Such technologies are intended to improve the quality of healthcare delivered through earlier diagnosis, less invasive treatment options and reductions in hospital stays and rehabilitation times. Recent advances in medical technology have also focused on cost reduction. Medical technology may include medical devices, information technology, biotech, and healthcare services. The impacts of medical technology may involve social and ethical issues. For example physicians may seek objective information from technology rather than listening to subjective patient reports. A major contributor of healthcare expenditure in America is the advancement of medical technology. According to several studies it is shown that there is a correlation between the nation’s gross domestic product (GDP) and money allocated to healthcare. One of the leading theories is that medical technology is growing faster than expected.

Many factors prompt the innovation of new technologies: Consumer demand, clinical accountability, medical advancements, research agendas, population health targets and the capacity and resources

What an exciting time to become part of the health care industry! Medical research makes new discoveries to improve the quality of patient care and save lives on a daily basis. Health care reform is gaining momentum, revolutionizing the industry and requiring many administrative changes, such as the creation of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Rules and standards evolved from this act provide a way to ensure your protected health information remains confidential. In this digital age, it is particularly relevant. The digital evolution impacts many areas. Digital TVs, computers, smart phones and iPods have totally changed the way we do business and enjoy entertainment. In the medical industry, the

The health care industry is one of the most dynamic and delicate industries in the U.S. having experienced healthy and substantial changes for the last thirty years most of which have aimed to improve health care management and services delivery to the patients. The changes have enabled the integration of technology into the industry such as in the area of informatics, science and research and payment services and clinical treatments. The health care sector has introduced various changes to address disease and health care management such as the Modernization Act of 2003, the Patient Protection Act and Affordable Act, which aim at improving health provision and most

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).

It will be a win-win strategy for every participant in the medical devices supply chain. In details, first, MTC could form a strategic alliance to hospital ‘innovators’, such as Cleveland Clinic, to develop new high tech device. Patent could create a new revenue stream for both parties. Moreover, MTC would know earlier and react faster about what surgeons really need from the company’s next devices. At the same time, hospitals would be willing to cooperate due to the gain through such early involvement program. Second, implementing low unit of measure (LUM) Lean/JIT systems between distributors and hospitals. RFID tags could provide information on locations of medical device. Accordingly, manufacturer/distributors would have visibility to hospital’s items and control the order lead time to maintain a least landed cost. It is a desired result for distributors since they are more willing to shift from the traditional bulk model of shipping inventory in full-case quantities of use. Third, a higher percentage of ‘on-contract’ purchase benefit the cost saving which has become an important supply chain metric in leading hospitals. Last, supply chain touch points create potential safety issues and unnecessary expenditure. MTC should give a scrutinize of current process, in addition, eliminate touch point such as off-site

These trends are allowing physicians to sustain the economic forces and science advancement. Physician’s industry is the locomotive of the healthcare advancement and cost effective outcome.

It is easy to analyze Stryker’ case. Stryker’s products are simple, not as complicated as Microsoft and Johnson & Johnson. Moreover, Stryker has been ranked 61st out of 100 in “Fortune’s 100 Best Companies to Work For.”

If a product comes out at the wrong time, too early or too late there can be a lot of ups and downs. Boston Scientific was in the right industry and the right time. If we look at the time periods in which Boston Scientific was established in 1969 than a decade later was founded by the current owners John Abele and Peter Nicholas to acquire Medi-Tech, Inc (Boston Scientific Corporation History, 2001). It lines up with the same time that the healthcare industry began to expand very quickly. In the 1970’s the healthcare industry would see spending growth rates of 9.8% yearly, these growths continued up to present date (How Changes in Medical Technology Affect Health Care Costs, 2007). Most of this spending would be driven by medical technology, which is exactly what Boston Scientific focuses their products and innovation around (How Changes in Medical Technology Affect Health Care Costs, 2007, History,

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.

The echocardiography industry is dominated by HP, Acuston, ATL and Toshiba. Their CR4 is 90% which represents a highly consolidated industry. Out of the all these HP alone has a market share of 64%.This is a well-established market with big established manufacturers, making barriers to entry very high.