In a market dominated by giants constantly vying for supremacy, one should pay attention when they team up. GE Healthcare and Medtronic have just announced that they will be entering a partnership focused on improving outpatient care for ambulatory surgical centers (ASCs).
A bit of context: In recent years, and especially with the COVID-19 pandemic, America’s healthcare has become more and more outpatient-focused as surgical technology advances and allows for faster patient recovery times. This means that the ASC market is growing in importance and OEMs and distributors will do well to pay attention to them.
Clearly, with this thought in mind, GE Healthcare and Medtronic are each bringing their own strengths to bear in this partnership. GE Healthcare will offer its skills in providing larger capital equipment such as imaging equipment, while Medtronic will showcase its expansive catalog of products ranging from the cardiac to pain management spaces.
According to GlobalData Analytics, Medtronic and GE Healthcare are two of the major competitors in the cardiovascular field, with a combined revenue just shy of $50 billion. This deal should be understood as synergistic instead of just additive. If the two companies work in close collaboration with one another, they can dramatically ease the design and construction of new ASCs. If healthcare providers can enjoy a frictionless all-in-one service from these two giants, it only makes sense that they will steal market share from other, less integrated competitors.
This deal will likely alter the market dynamics: other market giants may also start to team up to compete against this recently announced partnership.