By Sarah Collins
Zimmer Biomet’s scale of operations
With Zimmer Holdings’ acquisition of Biomet in June 2015, the combinatioin of the two companies has provided a competitive edge for Zimmer Biomet. The economies of scale achieved through the acquisition give the company a broader geographic reach and market presence.
The acquisition has almost doubled the company’s market share in its Trauma, Spine, and Extremities segment. The company has become the top player in the knee and hip implants market. So the company’s scale can be leveraged to offset competition and price declines amid the single vendor relationship models. These models are being increasingly preferred by hospitals who want to cut costs due to the healthcare industry’s focus shifting to value-based care.
