Business Concept
To remain an attractive supplier, in a market in which size is becoming increasingly important, Getinge works continuously to strengthen its position as one of the medical care sector’s preferred partners. This work is conducted on the basis of two main approaches: acquisition-led expansion and organic growth through continuous development of existing positions. In this perspective, acquisition-led expansion is an effective way of rapidly building size and broadening the Group’s offering of competitive solutions.
Business concept
Getinge’s business concept is to offer solution comprising products, services and competence that will contribute to higher efficiency in the care sector, thereby freeing resources for further care production. Getinge’s offering shall also contribute to higher quality and safety in the care sector. Today, the Group’s offering comprises broad, integrated solutions within infection control, cardiac surgery, vascular interventions, intensive care, care ergonomics and wound care.
Market
Nearly half of Getinge’s sales are in the European market. In recent years, the Group has made significant investments to increase its presence in major emerging markets, such as Brazil, India, China and Russia. Similar investments were also made in North America and Japan, where the Group continues to take market shares and the growth potential is estimated to be favourable. During 2008, the Group continued its expansion of existing operations in North America and in emerging markets. The Group expects these investments to decrease dependency on the European market in the years to come.
Healthcare costs
There are several factors indicating that the global demand for advanced healthcare and high-quality care for the elderly will continue to grow for the foreseeable future:
- The demographic trend, with a larger proportion of elderly people who need care. The increase in prosperity-related diseases.
- Technological advances and new pharmaceuticals facilitating the treatment of an increasing number of diseases.
- The global prosperity trend that is leading to a growing number of countries being able to afford to build up advanced medical care.
The combination of these factors is expected to lead to more rapid growth in demand for care than financial allocations. Accordingly, political decision-makers are trying to bridge the gap that arises between supply and demand by making care more efficient. One method of achieving this is to introduce new types of reimbursement systems that reward efficient businesses within the area of care. Another common method is to expose the care sector to competition by opening the market to private players. A distinct example of this is the US market, which largely comprises private care chains operating at regional or national level. In Europe, the private share is increasing from a considerably lower level.
Increased elements of privatisation and new reimbursement systems drive a consolidation of healthcare providers and increased requirement for products and services aimed at enhancing efficiency in the healthcare sector. This also leads to a consolidation of suppliers.
Due to the increase in demand, the healthcare sector must find ways to improve cost-efficiency. It is reasonable to assume that this will result in players in the healthcare sector choosing suppliers that can offer solutions that increase efficiency and release resources.
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