Medical Equipment & Supply Wholesalers
Brief Excerpt from Industry Overview Chapter:
Companies in this industry distribute professional medical equipment, instruments, and supplies to physicians, hospitals, and extended care facilities. Major companies include Henry Schein, McKesson Medical-Surgical, Owens & Minor, and Patterson Companies (all based in the US), along with EBOS Group (Australia), OneMed (Sweden), and Yamashita Medical Instruments (Japan).
Pressure to control health care expenditures is intensifying price negotiations for wholesalers and prompting customers to consolidate. Many customers belong to group purchasing organizations (GPOs), which help negotiate bulk pricing. Loss of a major GPO relationship can have a significant impact on sales.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include medical and surgical instruments and equipment accounting for more than 30%% of the industry revenue; supplies account for about 15%; and orthopedic and prosthetic appliances account for about 5%. Other products include dental, veterinary, and laboratory equipment and supplies account for about 50%. Some companies carry more than 250,000 stock-keeping units (SKUs), while others specialize in niche markets and may carry only a few different items to serve a local market's specific needs.
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