Teaming Up to Supply Devices to Managed Care

Executive Summary

The desire of managed care customers and group purchasing organizations to be serviced by large distributors is limiting the ability of small- and mid-sized device companies to access customers directly. Smaller companies have responded with reliable service and quality, cost-effective products. In most niche markets, customers have temporarily accepted the small-company argument. But all suppliers expect increased consolidation by customers, suggesting more alliances will be required to sustain innovation and quality throughout the marketplace.