Dilemmas Encountered by Small and Medium-sized Orthopedic Medical Device Manufacturing Companies in Healthcare Reform Based on a Supply Chain Perspective: Taking a Manufacturer in Jiangsu Province as an Example

Abstract

As China’s healthcare reform progresses, the medical device industry is receiving significant attention as an essential part of the healthcare delivery system. Current research on the supply and management of medical devices in the context of healthcare reform mainly focuses on the downstream of the supply chain to innovate the management model of orthopedic consumables in hospitals and realize competent healthcare. However, only a few studies have focused on medical device manufacturers upstream of the supply chain and proposed measures to improve supply chain performance. This paper takes a medium-sized customer medical device manufacturer in China as a case study. This study analyzes the problems revealed in its supply chain operation through literature research, case study analysis, and fieldwork. It proposes countermeasures for the continuous improvement of the industry against the background of healthcare reform. The study found that small and medium-sized medical device manufacturers were not using management information systems adequately and were suffering from the impact of healthcare reform by sticking to their old distribution models. For long-term growth, these small and medium-sized medical companies should focus on research and development, cater to market needs, integrate downstream distributors, and work with hospitals to establish a more transparent and efficient healthcare supply chain.