Study: Medical device industry facing $34 billion revenue hit (Healthcare Daily)
The confluence of five forces could create a $34 billion hit to the medical device industry's revenues over the next five years.
Until now, the medical device industry has enjoyed stability, strong growth, healthy margins and above average price-to-earnings ratios over the last 20 years. But disruptive changes are causing industry executives to focus on differentiated sources of value, customer productivity and total patient disease management, said Dave Powell, a partner with A.T. Kearney and a co-author of a study that delves into the industry's challenges.
The study points to five disruptors that will negatively impact the economics of the industry if not addressed.
"Radical change is inevitable, and the companies who embrace it will both shape the industry and profit from it," Powell said.
Kearney interviewed more than 30 global medical device industry executives from 20 of the world's leading medical device manufacturers. Collectively these companies represent $80 billion in revenues.
According to the study, the five disruptive forces shaping the medical device industry are:
1) Power shift to paye...
