Verified Document

Fresenius Dialysis Company Essay

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…

Sources used in this document:
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
Cite this Document:
Copy Bibliography Citation

Related Documents

EMR for Large Company
Words: 3022 Length: 11 Document Type: Essay

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

Angel Medical Portable Dialysis Device
Words: 4318 Length: 12 Document Type: Business Proposal

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

Nxstage Strategic Plan
Words: 5241 Length: 15 Document Type: Essay

NxStage Company Background Environmental Scan Five Forces & Value Chain Strategic Alternatives Strategic Plan Acquisitions Resource Allocation NxStage is a medical equipment manufacturer specializing in hemodialysis products for use in the home. Their main flagship, NxStage SystemOne, constitute two-thirds of the company's revenues. The product has been on the market for several years, but NxStage has never been able to turn a profit, nor has it been able to develop a viable second major product. This has created

Financial Analysis of Uhs Is
Words: 2635 Length: 10 Document Type: Research Paper

92%. This compares to the 0.36% for its peers last year and 17.42% over five years for the sector. UHS has a net profit margin of 3.86% and a five-year average net profit margin of 4.49%. The sector averaged a net profit margin of -0.38% last year, but has a five-year average of 12.27%. What this indicates is that historically UHS has lagged its peers in terms of bottom line

Supply Chain, Diversification and Vertical Integration
Words: 2224 Length: 7 Document Type: Essay

Management I wouldn't use a formal process to reconcile global integration and national differentiation. Each situation is unique, and you actually have to think each situation through on its merits, and with its own evidence. Some companies have a very decentralized structure, and thus place more emphasis on decision-making at the national level. Other companies have built their strategy on having a high level of product consistency around the world. But

Covidien and Medtronic
Words: 2514 Length: 8 Document Type: Essay

Background In June, 2014, the world's #2 maker of medical devices, Medtronic, agreed to buy Covidien, a smaller company in the same industry.  The deal was valued at $42.9 billion, and it was a cash and stock deal.  The deal was done at a 29% premium over Covidien's June 13, 2014 closing price. The deal was described by Medtronic's CEO as a "strategic and operational alignment" and there were immediate benefits

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now