
CLOGGED LOGIC.
Recent medical journal studies reported that the Cypher drug-eluting
stent by Johnson & Johnson’s Cordis Corp. unit clinically performs
better than the Taxus model offered by market leader and primary rival
Boston Scientific Corp. So why then does Boston Scientific’s product
remain the market leader? Simple supply and demand. According to the
surgeon study authors, the Boston Scientific product "holds an edge on
availability, deliverability, and cost." Since these studies were
published Cordis’ market share spiked to about 40 percent of the market,
up from about 33 percent at the beginning of 2005, the authors noted. An
interventional cardiologist at Mt. Sinai Medical Center in New York
blames it on production. "One of the biggest limits is the inability of
J&J to manufacture enough stents to meet their demand," he said. "This
is the classical case where the science speaks for a better product, but
the product is not available all over." Naturally, Cordis responded by
saying the company was "ramping up to meet growing demand." Some
patients died during the studies, which raises the question of where the
Medical Device Manufacturers Association was in decrying this? After
all, the MDMA was quick to prop up and parade doctors before a Senate
subcommittee a few years ago, whining about how restrictive GPO
contracts from Novation and Premier prevented certain technologies from
getting into doctors’ hands, thereby killing babies. How unfortunate
that GPOs can’t be blamed for these manufacturers’ mishaps, huh?
HARA KIRI? The
Wall Street Journal Online reported that Hitachi came under fire by the
Food and Drug Administration for the company’s failure to report its MRI
and PET scanning machines allegedly contributed to patient injuries.
Most curious, however, (but probably coincidental) was who "sponsored"
the space in which this story ran: Toshiba.
GET REAL. The
New York Times reported that insurance companies, which have been
attempting to manage healthcare costs, continue to prosper and increase
their profits even as those costs keep climbing. But analysts indicate
there may be trouble ahead for organizations like WellPoint,
UnitedHealth and Cigna because their Wall Street ratings have been
dropping. Please. Over on the left coast The Los Angeles Times
reported that PacifiCare executives stand to reap $230 million from the
United Healthcare "merger." Who’s kidding whom? The only events that
will rope payers back to reality are an outright revolt among consumers
and healthcare facilities (and just how effective or realistic is that?)
to boycott working with these companies, rally more Eliot Spitzer types
to fire up the masses or encourage an act of Congress (whose members
receive many lucrative contributions courtesy of your insurance
premiums).
MAMMO VOLLEY.
Like a tennis match – or maybe Olympic beach volleyball – clinicians and
scientists continue their debate over the benefits and relevance of
mammograms in detecting cancerous tumors. If you follow the media (trade
and consumer) about every six to 12 months a study emerges from the
research haze. The first extols the virtues of mammography for breast
cancer prevention, and then the next one bursts out of the fog
lambasting the previous studies. Doctors tell women to get a mammogram
at least yearly; then another group of doctors says it really doesn’t
matter. One wonders if the debate is somehow tied to operational budgets
and reimbursement – giving the old supply-and-demand a little nudge.
Either way, women deserve a clear, concise and credible study that
solves the conundrum once and for all – regardless of money. Otherwise,
this medical community just looks like a bunch of boobs.
REBRAND CEOS! We
launched our inaugural award for "supply chain-minded CEOs" back in
January because we felt that top administrators, by and large, were
branded and given a bad rap about their involvement in supply chain
operations. Sure, many fit the stereotype of the aloof,
can’t-be-bothered-about-box-moving business executive who believes the
GPO and/or distributor should assume that headache for them. But some
don’t. We knew that and you showed us some of them. Because it worked so
well the first time we’re embarking on a sequel. Our second annual "S.U.R.E.
Award for Supply Chain Focused CEOs" once again is looking to recognize
chief executives who support, understand, recognize
and empower the materials management department to do what needs
to be done to achieve bottom-line savings and top-line revenue.
Recommend worthy candidates for recognition in our January 2006 issue by
e-mailing us reasons how and why they deserve the spotlight – no more
than a couple of paragraphs are needed for each of the four S.U.R.E.
categories. Please keep in mind that GPO support is commendable but
we’re looking for details beyond that. Help us share the stories of
these remarkable CEOs.
Do right, readers
