Key Hospital Purchasing and Reimbursement for Medical Devices in Western Europe

Key Hospital Purchasing and Reimbursement for Medical Devices in Western Europe published by Frost & Sullivan in January, 2006. This report consists of 82 pages and the price starts from US $ 5000.

Introduction

Abstract

Research Overview

Large-scale Purchasing Orders Create Price Pressures for Medical Device Manufacturers

Due to restricted healthcare budgets and cost-containment strategies, healthcare providers are increasingly turning to large-scale purchasing of medical devices because it is more cost effective. Regional hospitals in most European countries are collaborating to gain better bargaining power and benefit from the economies of scale derived from bulk purchasing. In some countries, however, such strategies are confined to smaller hospital groups. While this method of purchasing holds many price advantages for healthcare providers, it is far from favourable for medical device manufacturers. Due to the growing trend of large-scale purchasing among hospitals, device manufacturers are left with no option but to review prices and make do with reduced profits in order to win purchasing contracts. This is currently a major challenge for all manufacturers and suppliers of medical devices in Europe.

Cost-containment Strategies Hinder Development of Innovative Products

As part of the prevailing cost-containment strategies, European hospitals are creating diagnostic-related groups (DRGs) that classify the patients' hospital stay according to their medical conditions. Each DRG has a reimbursement ceiling, compelling hospitals to rationalise patient treatment and ensure that all related costs are confined within this limit. While this system aims to contain costs, it also reduces the availability of extra funds that could have been used to procure new and innovative technology. This does not bode well for the industry as new technologies such as minimally invasive surgery are essential to ensure the constant evolution of patient care.

"The reimbursement system in place poses a threat to all medical device manufacturers," explains the analyst of this research service. "The ongoing financial reductions in the procurement of new technologies are likely to impact the development and innovation of the medical device industry and, more importantly, compromise the quality of healthcare provision for patients."

Rapid and Ongoing Innovation Could Lead to Obsolescence of Traditional Devices

Medical device manufacturers operate in a highly competitive environment. Innovations in medical devices are constantly being introduced and rapidly adopted, which poses a strong threat to traditional medical devices. For instance, the introduction of minimally invasive surgery and the growing uptake of stenting revolutionised the cardiology industry, but started adversely affecting the demand for conventional medical devices used in open-heart surgeries.

"Therefore, to sustain market leadership or dominate the industry, manufacturers need to differentiate their product offerings through ongoing and exciting innovations," says the analyst. "They will need to maintain a large product portfolio to ensure that business levels remain robust."

Table of Contents

• 1. Executive Summary
  • 1. Executive Summary
    • 1. Executive Summary of the Key Hospital Medical Devices Purchasing and Reimbursements in Western Europe
• 2. Healthcare Environment and Market Opportunities for the European Hospital Medical Device Market
  • 1. Introduction to the Healthcare Environment in Western Europe
    • 1. Introduction
    • 2. Medical Devices Directive
  • 2. PEST Analysis of the Medical Device Market in Western Europe
    • 1. Introduction
    • 2. PEST Analysis of the Medical Device Market in Europe
  • 3. Opportunities Analysis of the Medical Device Market in Western Europe
    • 1. Opportunities of the Hospital Medical Devices Market in Western Europe
  • 4. Key Strategic Challenges of the Western European Medical Devices Market
    • 1. Industry Challenges for Medical Devices
• 3. Healthcare Environment of the German Hospital Market for Medical Devices
  • 1. Introduction to the Healthcare Environment in Germany
    • 1. Introduction
  • 2. Purchasing and Reimbursements of Medical Devices
    • 1. Purchasing and Reimbursement of Medical Devices
  • 3. Opportunities Analysis of the Medical Device Market in Germany
    • 1. Opportunities Analysis of the Hospital Medical Device Market in Germany
  • 4. Key Strategic Challenges for Medical Devices in Germany
    • 1. Industry Challenges
• 4. Healthcare Environment of the French Hospital Market for Medical Devices
  • 1. Introduction to the Healthcare Environment in France
    • 1. Introduction
  • 2. Purchasing and Reimbursement of Medical Devices
    • 1. Purchasing and Reimbursements
  • 3. Opportunities Analysis of the Medical Device Market in France
    • 1. Opportunities of the Hospital Medical Devices Market in France
  • 4. Key Strategic Challenges for Medical Devices in France
    • 1. Industry Challenges
• 5. Healthcare Environment of the Italian Hospital Market for Medical Devices
  • 1. Introduction to the Healthcare Environment in Italy
    • 1. Introduction
  • 2. Purchasing and Reimbursement of Medical Devices
    • 1. Purchasing and Reimbursements
  • 3. Opportunities Analysis of the Italian Medical Device Market
    • 1. Opportunities of the Hospital Medical Devices Market in Italy
  • 4. Key Strategic Challenges for Medical Devices in Italy
    • 1. Industry Challenges
• 6. Healthcare Environment of the Spanish Hospital Market for Medical Devices
  • 1. Introduction to the Healthcare Environment in Spain
    • 1. Introduction
  • 2. Purchasing and Reimbursement of Medical Devices
    • 1. Purchasing and Reimbursements
  • 3. Opportunities Analysis of the Spanish Medical Device Market
    • 1. Opportunities of the Hospital Medical Devices Market in Spain
  • 4. Key Strategic Challenges for Medical Devices in Spain
    • 1. Industry Challenges
• 7. Healthcare Environment of the Scandinavian Hospital Market for Medical Devices
  • 1. Introduction
    • 1. Introduction to the Healthcare Environment in Scandinavia
  • 2. Purchasing and Reimbursement of Medical Devices
    • 1. Purchasing and Reimbursements
  • 3. Opportunities Analysis of the Scandinavian Medical Device Market
    • 1. Opportunities of the Hospital Medical Devices in Scandinavia
  • 4. Key Strategic Challenges for Medical Devices in Scandinavia
    • 1. Industry Challenges
• 8. Healthcare Environment of the Benelux Hospital Market for Medical Devices
  • 1. Introduction to the Healthcare Environment in Benelux
    • 1. Introduction
  • 2. Purchasing and Reimbursement of Medical Devices
    • 1. Purchasing and Reimbursements
  • 3. Opportunities Analysis of the Medical Device Market in Benelux
    • 1. Opportunities of the Hospital Medical Devices in Benelux
  • 4. Key Strategic Challenges for Medical Devices in Benelux
    • 1. Industry Challenges
• 9. Healthcare Environment of the United Kingdom Market for Medical Devices
  • 1. Introduction to the Healthcare Environment in the United Kingdom
    • 1. Introduction
  • 2. Purchasing and Reimbursement of Medical Devices
    • 1. Purchasing and Reimbursements
  • 3. Opportunities Analysis of the United Kingdom Medical Device Market
    • 1. Opportunities of the Hospital Medical Devices in the United Kingdom
  • 4. Key Strategic Challenges for Medical Devices in Benelux
    • 1. Industry Challenges
• 10. Market Engineering Strategy
  • 1. Strategies
    • 1. Strategic Recommendations for the Medical Device Manufacturers in Europe
• 11. List of Key Industry Participants
  • 1. Key Industry Participants
    • 1. List of Key Industry Participants
• 12. Decision Support Databases
  • 1. Demographics
    • 1. Female Population 65 Plus
    • 2. Male Population 65 Plus
    • 3. Population 65's Plus
  • 2. Healthcare Infrastructure and Expenditure
    • 1. Government Healthcare Expenditure
    • 2. Private Healthcare Expenditure
    • 3. Percentage of Healthcare Expenditure
    • 4. Number of Hospital Beds

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