According to an article in MD+DI, Cardinal Health and Emerge Medical have entered into agreements to distribute generic orthopedic devices. This decision underscores a growing trend, and the article investigates why this is such an important development. The article also touches on how generics could be poised to become a larger part of the industry.
Generic drugs have been a source for much controversy in the pharmaceutical industry. Drug companies feel they are losing billions in revenue, while proponents tout the safety and affordability for patients.
With the cost of medical devices continuing to rise, companies are being pressured to lower costs. The Government Accountability Office (GAO) has issued a report that cites there are substantial pricing variations that hospitals pay for cardiac devices. Ultimately, these prices are passed on to patients.
Laura Ruth for from consulting firm Fuld & Company indicates that generic devices could offer a win-win for both device manufacturers and patients. Beyond lowering healthcare costs, generic devices offer an opportunity to diversify their product offerings. She cites the pharmaceutical industry as an example.
Share your thoughts on the potential of generic devices. Do you feel they will become a bigger part of the medical device industry, or is this just a passing fad?
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