Publications
Publications
- January 2017
- HBS Case Collection
Kada Orthopedics: A Bone of Contention
By: Kevin Schulman and Matt Strickland
Abstract
Kada Orthopedics is a small implantable orthopedic device manufacturer founded by industry veterans trying to sell stable-technology products to an increasingly cost-conscious healthcare market. Although they have marginally successful product in early 2016, the founders are faced with the difficult choice of where to direct their efforts given a rapidly changing medical device landscape.
The case examines the factors and industry structure that have allowed the big implantable orthopedic device manufacturers to maintain nearly unrivaled profitability for decades. Touching on themes related to the Affordable Care Act, the Physician Payments Sunshine Act, increasing consumerism in healthcare, and provider consolidation, the case uncovers an industry in the midst of upheaval. To make their company a success, the principals at Kada Orthopedics must factor this changing landscape as well as classic medical device business problems like how to market, sell, distribute, and support implantable devices.
Keywords
Market Design; Growth And Development Strategy; Health Care; Business Startup; Growth and Development; Health Care and Treatment; Medical Specialties; Business Startups; Supply and Industry; Medical Devices and Supplies Industry; United States
Citation
Schulman, Kevin, and Matt Strickland. "Kada Orthopedics: A Bone of Contention." Harvard Business School Case 317-091, January 2017.