GENERIC DEVICES – IT’S ABOUT DISTRIBUTION (Orthopedics This Week)
Generic orthopedic devices can replace 80% of implants sold by conventional vendors, says Stephen Lichtenthal, vice president of business development for The Orthopaedic Implant Company.
Designs and improvements in technology have plateaued in orthopedics. This mature market is ready for the final cycle of economics, says Lichtenthal.
He argues that removing the “omnipresent” sales rep from the operating room, combined with low R&D costs creates the opportunity to generate cost savings for hospitals. It’s not about manufacturing, says Lichtenthal, but about the logistics of distribution and managing inventory.
Because the devices are less differentiated from each other, hospitals can go back to managing their own inventory. Conventional manufacturers disagree of course, but no one doubts distribution models are changing in response to new reimbursement models like bundling.
Lichtenthal makes his case. Let us know what you think.
Walter Eisner – Senior Writer, Orthopedics This Week
The idea of generic orthopedic medical devices pertains more to a supply chain model rather than copying designs of existing device...
