Expert Insights: Medtech Leaders Discuss Vertical Integration and Hospital Centricity

Posted by ZS Editors on April 23, 2019

This post is the first in a two-part series on vertical integration and data management in medtech.

The American healthcare paradigm is currently in a state of flux, driven by social, political and economic factors that require every participant in the system to reconsider their place in the value chain. Fortunately, the possibilities of strategic vertical integration offer new opportunities for many organizations. For example, many hospitals are building out secondary structures by acquiring nursing homes, assisted living facilities, and home care or hospice centers to manage patient populations within their own system. By crafting a more comprehensive healthcare journey, these hospitals stand to benefit from greater operational efficiency while delivering a higher standard of patient care and experience.


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What Can Ford’s River Rouge Plant Teach Us About Vertical Integration in Healthcare?

Posted by Brian Chapman on August 28, 2018

This blog post was originally published on the Medtech Conference (AdvaMed) blog

For anyone who grew up in Michigan, the Ford River Rouge Plant is legendary, in both the scale of its ambition and its dramatic fall as the auto industry matured. Built outside of Detroit in 1928, it was the largest manufacturing facility in the world at its peak, with 16 million square feet and 100,000 employees. Unloaded on the docks of the River Rouge were iron ore, coal and other raw materials. Rolling out the other side of the factory were fully finished cars. In between was a steel mill that boasted its own coal power plant. By 2018 the factory was idled and now has a museum, a light truck assembly facility and a very large parking lot.


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Blurred Lines: Vertical Integration in the Medtech Sector

Posted by Tobi Laczkowski on June 9, 2015

A key question leaders in any company must face is how vertically integrated to be. This means deciding which links in the value chain they should operate, versus outsource to others. There are plenty of pros and cons to vertical integration. Often, the largest pros center around reducing the transaction costs in negotiations with suppliers or customers, as well as capturing the profits currently enjoyed by others along the value chain.


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