Please see the attached document for additional information that should be considered. (800 words, APA format)
As we look at the future of the industry there are several issues that should be considered in the development of the business model strategy:
- What is the population that will most likely to need a prosthetic? (highest population are Diabetic, Vascular issues). How large is the population? Is it likely to grow or shrink? Are there significantly underserved populations?
- The vast majority of prosthetics are paid for by insurance. In recent years insurance companies have dramatically dropped the reimbursements for prosthetics – in some case this drop has been over 50%.
- There has been tremendous consolidation in the healthcare industry in recent years. The prosthetic industry has been somewhat protected from these consolidations due to the industrial space requirements of their process. However, if that process changes what does that mean to the structure of their industry?
- Traditionally the CPO (Certified Prosthtist/Orthotist) was involved in the process of prosthetic development from start to finish. Will this continue if the process changes? If so how might it change?
- If they invests in the development of a custom solution are they building a competitive advantage, or at risk of a large design firm (e.g.: Autodesk) integrating a solution for the industry as a whole?
- Are there threats from off-shore competitors?
- Are there opportunities off-shore?
- Are there delivery models in other countries? What is the delivery model?