Economic and Market Impact Report Assignment
Economics significantly affects the cost of healthcare in one way or another. Different market trends may impact the demand for products and services. As the South Florida Territory Manager for my company, Haemonetics, I sell two femoral vascular closure devices to the roughly 25 hospitals in my geographic area. The two devices are Vascade and Vascade MVP. The economic trends that may affect the use of Vascade and Vascade MVP devices include technological advancement that has led to the production of a different closure devices by competitors. This essay presents the major economic trends in the market, the benefits or harm that the trends caused to the organizational strategic goals, the application of threats and opportunities, and the organization’s influence on economics. Economic and Market Impact Report Assignment
Major Economic Trends in the Market
The closure device market has diversified over time. The market has shifted from manual compression to vascular closure devices. More closure devices and their applications have been developed to enhance patient care. The variety of different femoral vascular access cases has grown exponentially because of this diversification of uses.
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Two closure devices, Mynx and Perclose, mentioned in the SWOT analysis matrix are examples of competitor devices that have been developed. The economic impact of competition is that it creates competitive spaces for innovation, lower prices, and producing better quality devices. The economic trend offers Haemonetics an opportunity to gain more customer base by improving the quality of the Vascade and Vascade MVP devices. Additionally, low prices may attract more healthcare systems to adopt and purchase the devices, thus increasing profits and expanding the market reach. Innovation may also help improve the current product, thus increasing profit and the Vascade brands.
Furthermore, a significant economic trend that impacts Vascade devices is the increase in the number of early physician adopters showing interest in the use of Vascade. Our FDA approved trial data for both devices shows that the use of our closure devices and early ambulation has gained popularity to a great extent, especially after the covid-19 pandemic. Embracing healthcare technology has increased the demand and openness for new technology advancements (Krick, et al.2019). Economic and Market Impact Report Assignment
Benefits/Harm of the Trends to the Organization’s Strategic goals
The economic trends in the closure device market benefit the Haemonetics’ strategic goals. One of the organization’s strategic goals is to maximize profits while ensuring maximum market reach. The increased success and visibility of Vascade has spread widely thanks to the growing trend of utilizing social media. In addition, our larger presence at market related conventions and conferences has us positioned on the same stage as larger medical device companies. Increased visibility of the devices translates to more hospitals embracing closure devices such as Vascade. The trend has enhanced the company’s reach to a larger market.
In addition, the development of other devices like Mynx and Perclose has benefited the company’s strategic goals since it has increased innovation and enhanced the quality of our devices. Arguably, the organization has been pushed to produce better and more diverse devices to maintain market coverage, such as certain types of vascular cases that our competitors cannot close; thus creating new revenue streams by expanding to other departments in the hospitals. Economic and Market Impact Report Assignment
However, some market trends are a double edged sword and have caused harm to the organization’s strategic goals. As mentioned earlier, one of the organization’s strategic goals is maximizing profits. Diversification of closure devices and the availability of many brands and device types have significantly impacted pricing. According to Gopal et al. (2019), the market competition in healthcare technology and devices is considerably high and will continue to rise due to the development of new technology applications and devices. A competitive market forces a company to lower product prices to remain competitive. The price reduction may lead to profit reduction, thus a threat to the organization’s strategic goals. However, Haemonetics has a competitive advantage over its competitors in other price related areas. For example, the Vascade MVP device is the only FDA approved closure device for same day discharge and the only FDA approved device for multi-stick/multi-vessel procedures. This value is high-lighted to our customers when discussing pricing. Economic and Market Impact Report Assignment
Application of Threats and Opportunities of the Economy to the Organization
The economy in our market presents both opportunities and threats to our organization. One of the main opportunities is the healthcare technology economy which gives Haemonetics extensive growth opportunities. The healthcare technology economy is growing at a rapid rate due to things such as technological advancement. Technology helps accelerate productivity while minimizing labor. High productivity will mean that we have enough devices to keep up with our customers’ growth, thus the ability to deliver bulk orders and serve more patients. Economic growth is a significant opportunity for the company since it means we can sell more products and invest more in research and development to grow our pipeline of future closure devices. Economic and Market Impact Report Assignment
Further, the economy presents an opportunity for organizations to acquire or merge with other closure device companies. Haemonetics can use these mergers and/or acquisitions to improve market share and increase profits by way of quick growth and expansion. The company can also invest with venture capital firms on new but unproven technology that shows future promise. In their study, MacNiel et al. (2019) note that partnerships with venture capital firms is essential for healthcare organizations. New technology production development requires significant resources. This is where venture capital firms can provide the resources in partnership with a company like Haemonetics. More so, since hospitals are the consumers of these devices, partnerships with them may also help obtain feedback that can be used to increase production and improve quality. The existing policies and regulations in the economy that enhance partnerships are an opportunity for our Haemonetics to expand and improve performance. Economic and Market Impact Report Assignment
The Organizations Influence on Economics in the Area
Haemonetics, through its closure devices, Vascade and Vascade MVP, can improve the economics in my geographic territory. This improvement is accomplished by the adoption of our devices by the hospitals as their standard of care closure device. Vascade can improve their bottom lines through several improvements these closure devices will deliver, backed by our FDA approved clinical trial results. Some of the improvements that directly impact economics would be early ambulation, same day discharge, reduction in opioid use, reduction in Foley use, increased procedure volume, and procedure room turn-around time.
Conclusion
Monitoring the economic trends is essential for organizational leaders in determining the threats and opportunities of the economy to the organization. Market trends can also benefit the organization leading to better performance and achievement of strategic goals. Haemonetics and its Vascade and Vascade MVP closure devices positively impact the area’s economy through its impact on the hospitals’ bottom lines, as discussed above. Economic and Market Impact Report Assignment
References
Gopal, G., Suter-Crazzolara, C., Toldo, L., & Eberhardt, W. (2019). Digital transformation in healthcare–architectures of present and future information technologies. Clinical Chemistry and Laboratory Medicine
Krick, T., Huter, K., Domhoff, D., Schmidt, A., Rothgang, H., & Wolf-Ostermann, K. (2019). Digital technology and nursing care: a scoping review on acceptance, effectiveness and efficiency studies of informal and formal care technologies. BMC Health Services Research.
MacNeil, M., Koch, M., Kuspinar, A., Juzwishin, D., Lehoux, P., & Stolee, P. (2019). Enabling health technology innovation in Canada: Barriers and facilitators in policy and regulatory processes. Health Policy. Economic and Market Impact Report Assignment
