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German Diagnostics: Life Gets Hard

Executive Summary

In the past year, Germany, the largest health-care market in Europe and long considered a model of high-quality medical egalitarianism, has cut reimbursement for many in vitro diagnostics tests by 15-20%, mirroring trends in other European countries. In response, German laboratories are consolidating to reap the benefits of economies of scale, while their suppliers are paring expenses, reorganizing internally, and cutting prices.

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