Becton Dickinson Case Summary

What are the important changes in the heath care market, and what are the implications for Becton Dickinson (BD) and its BDVS division? Support your position. There are many substantial changes in the health care market. This includes the economic situation which was followed by a vast decrease and cut down in costs and expenses in hospitals. Consequently, over 100 000 employees were dismissed from their position.

Also, another important change in the health care market was the United States government ending reimbursements to hospitals for Medicare patients being admitted. As a result of this, hospital admissions decreased, as well as length of hospital admissions decreased, and by 1990 hospital beds were prospected to decrease by 400 000.

A very important change in the health care market was the introduction of multihospital chains and buying groups. These organisations purchased supplies and equipment for hospitals through
BDVS have had a lot of power in the past and will not lose much if the contract is lost but will have to work very hard in introducing newer products at newer pricing to ensure the future success of BDVS.

How important is each aspect of the negotiations (specifically pricing, brand name, and delivery terms) for each party explicitly or implicitly involved (APG, its member hospitals, BDVS, BDVS’s distributors, and competing suppliers)? Support your position.
The decisions made throughout the negotiations process, regarding namely pricing, brand name and delivery terms, are moving towards control of costs within the healthcare industry environment. It is important that these three aspects are detailed throughout the negotiations with APG, member hospitals, distributors and competing suppliers.