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Fresenius
The company that I have chosen to evaluate is Fresenius, a health care company specializing in dialysis equipment and clinics. They are based on Bad Homburg, Germany, which is just outside of Frankfurt. Fresenius is one of the global leaders in this business, and has an extensive network of dialysis clinics in the United States. The dialysis business is driven by age and overall health of individuals in a society. There are a variety of payers, depending on the country. Most dialysis patients need multiple visits per week to the clinic. This division within the company is Fresenius Medical Care, and accounts for $15.8 billion in revenue and over $1 billion in profits. The company has smaller businesses as well, including Fresensius Kabi, which is IV drugs, clinical nutrition and medical devices. Fresenius Helios operates hospitals, and Fresenius Vamed runs projects and services for hospitals.
The location to be analyzed in the American market. Fresenius is a global company, and its revenues are fairly evenly split between Europe (44%) and North America (40%) but within that the United States is the single largest market for the company. This is a $21 billion industry in the United States. Fresenius is the...
Demand in the industry is inelastic -- people who need dialysis need it to survive, and in many cases they are not even the payer. There is relatively little bargaining power for the payers in the industry, due to the medical need that dialysis patient have for this type of treatment.
Because Fresenius uses North America as its reporting unit, it may be difficult to separate out American and Canadian revenues, but based on population it is reasonable that 90% of the total North American market is in the U.S., should estimates be required.
There are a number of sources that can be used to gather information. The overall industry data is culled from a number of different sources. The IBIS World report (2014) provides some basic data -- the full report costs too much money to acquire, but if it could be acquired would be an excellent source of data. This report singles out dialysis centers, whereas Fresenius also makes equipment and sells to third party dialysis centers, hospitals and clinics. While this may make drilling down precise data more difficult, valuable information is still available.
The company's annual report is also a high quality…
References
Cutler, D., Dafny, L. & Ody, C. (2012). How does competition impact the quality of health care? Kellogg School of Business. Retrieved May 10, 2015 from http://www.kellogg.northwestern.edu/faculty/dafny/personal/Documents/Publications/16_Dafny_How%20Does%20Competition%20Impact%20the%20Quality%20of%20Health%20Care%20-%20Dialysis.pdf
Fresensius 2014 Annual Report. Retrieved May 10, 2015 from http://www.fresenius.com/documents/GB_US_GAAP_2014_englisch.pdf
IBIS World (2014). Dialysis centers in the U.S.: Market research report. IBIS World. Retrieved May 10, 2015 from http://www.ibisworld.com/industry/dialysis-centers.html
Kutscher, B. (2014). Dialysis providers expect ACOs, payment cuts, consolidation. Modern Healthcare. Retrieved May 10, 2015 from http://www.modernhealthcare.com/article/20141011/MAGAZINE/310119931
The Economist (2010). Stakes in kidneys. The Economist. Retrieved May 10, 2015 from http://www.economist.com/node/15911962
EMR There are several criteria by which the company can establish acceptability for the eCube system of EMR that is available from Fresenius. The first stakeholder group consists of the patients, who will benefit from the enhanced functionality that comes from the eCube system, in particular the superior health outcomes that come from having accurate medical histories available to physicians and other practitioners while they are working with the patient. Management
The cassette has a built-in one-liter bladder to hold urine. The patient should empty the bladder at least every six hours. An alarm will beep if he forgets to do this, or if the bladder becomes full. The device can be used during the day, at night, or both. Unlike CAPD, it is not necessary to connect to and disconnect from the Tenckhoff catheter four times a day, which
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