Essay - Business Research Sources of Funding/payment for These Products Sources of...

Business Research

Sources of funding/payment for these products

Sources of funding and payment ***** in-home medical *****, specifically the sleep/rest support systems discussed in this case, is def*****ed through a mix ***** public and private funding. A prime determinant of the total available amount of funding will be private health insurance. The use of government ***** programs including Medicare ***** Medicaid would require the management of Stryker Corporation to coordinate with the Food & Drug Administration to get *****ir products qualified for funding ***** in-home use. ***** majority ***** manufacturers in the medical products industry who produce in-home use equipment and diagnostics rely on government-related funding for the majority of *****ir revenues. The reliance ***** Medicare and Medicaid is a significant source of revenue and the relationship with ***** Food & Drug Administration is critical.

Private health insurance provides insured patients with a greater choice of ***** yet the premiums these ***** pay often have the restriction of each individual private health ***** provider having to approve each specific purchase. Government-based financing ***** also available at reduced interested rates, and is another catalyst for many ***** medical ***** manufacturers seeing out a close partnership ***** the ***** & ***** Administration. Despite the more lengthy process of obtaining a lo*****n from the government ***** in-home medical equipment, many senior citizens and Baby Boomers now entering retirement opt for this approach ***** funding on order to get the latest technologies available.

***** hospitals and nursing homes ***** ***** sleep/rest support ***** yet their percentage ***** the market hovers in the 35% - 40% range due to the c*****tinual pressure ***** reduce budgets ***** increase efficiency of operations. Typically ***** segment of customers purchases low*****end, mass produced products that are specifically developed for institutional use. As a result, public hospitals are ***** not early adopters of new ***** and also ***** often the first to reduce costs as ********** are constrained by shared government ***** with other *****care providers. All of these factors contribute to healthcare facilities typically having direct relationships with manufacturers, purchasing only those products ***** are at the lowest-end of the product line ***** *****ten trimmed down of features ***** make them more af*****dable. Adding to all these factors with regard to institutional purchasing is the Deficit Reduction Act which was passed in 2006. This Act is aimed at saving $40 billion over five years by slowing the growth rate of expenditure for ***** and *****, and it immediately slowed down sales of inst*****utional medial ***** and forced budget constraints on healthc***** ***** funded ei*****r partially or completely by the government. As a result, manufacturers are creating their own financing companies and extending credit to elderly customers if they do not qual*****y for government-based loans. This has turned into a significant ***** stream both in finance charges ***** the sales of additional meds. The growth of private funding is one ***** the primary catalysts driving ***** growth of this market, and with ***** ***** introductions driven by high Research *****