Medical Equipment & Supply Wholesalers

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).

COMPETITIVE LANDSCAPE

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 surgical, medical and hospital instruments which accounts for about 50% of the industry revenue while medical dental and veterinary equipment account for more than 30%; instruments account for 15%; and orthopedic and prosthetic appliances account for about 5%. Other products include dental instruments, supplies, and equipment. 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.