1. QMSPartners
THOUGHT LEADERSHIP
QMS Partners
Specialized in Healthcare & Pharmaceutical Industries
An Executive Perspective
www.qmspartners.com
Industry Consolidation
Registered hospitals
totaled 5,822 properties
One of the strongest trends in the healthcare &
in 2006, containing pharmaceuticals industry in recent years has been
955,918 beds serving consolidation. Acquisitions involving major players have been
37.6 million admitted growing in size, and have created a new tier of mega-
Devices Equipment Pharmaceutical
patients companies. Companies undertake these deals for reasons
that include strengthening pipelines, gaining economies of
QMS Partners scale, and improving research efficiency.
Health care costs continue to rise rapidly in the U.S.
Primary Research
and throughout the developed world. However, the unprecedented size of these organizations is
creating substantial management complexity, and some
Total U.S. health care expenditures are projected to
merged companies are finding the expected savings and
increase from $2.17 trillion in 2006 to $2.88 trillion in improvements elusive. The stand-alone companies are
2010, with annual increases averaging about 7% actively assessing what their most attractive options might be.
Cost Pressures
Other
26% Hospitals
Margin and earnings pressures are bringing an increased
32%
focus on traditional financial controls and operational
efficiencies, in an industry that has historically given them little
attention. Topics like purchasing and supply management, IT
cost containment, and manufacturing cost reductions are
Nursing/Home
becoming increasingly important to top management.
Care
9%
Medical Devices & Equipment
Perscription
Physician/Clinical
Drugs
22%
Medical device and equipment companies continue to be
11%
driven by innovation. New devices and equipment deliver real
2006; $2.17 Trillion improvements in clinical outcomes. New technologies open
new avenues to treatment. The industry remains highly
708 Third Avenue, 5th Floor
fragmented by products and competitors.
New York, NY 10017