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The Health Care Value Chain: Producers, Purchasers, and Providers Hardcover – April 4, 2002

ISBN-13: 978-0787960216 ISBN-10: 0787960217 Edition: 1st

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Product Details

  • Hardcover: 464 pages
  • Publisher: Jossey-Bass; 1 edition (April 4, 2002)
  • Language: English
  • ISBN-10: 0787960217
  • ISBN-13: 978-0787960216
  • Product Dimensions: 6.3 x 1.4 x 9.3 inches
  • Shipping Weight: 1.5 pounds (View shipping rates and policies)
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (7 customer reviews)
  • Amazon Best Sellers Rank: #788,306 in Books (See Top 100 in Books)

Editorial Reviews

From the Inside Flap

Written by Lawton R. Burns and a panel of expert contributors, from the prestigious Wharton School, The Health Care Value Chain analyzes the key developments and future trends in the United States' health care supply chain. Based on a groundbreaking research initiative underwritten by the industry/university consortium— the Center for Health Management Research— this important book offers an in-depth examination of how the health care supply chain helps create value and competitive advantage.

The Health Care Value Chain offers a thorough examination of the trading relationships among the manufacturers of health care products, the distributors, the group purchasing organizations, and the hospital customers and end users of those products. And the authors show how health care professionals and manufacturers can work together to form beneficial strategic alliances. The Health Care Value Chain

  • Shows how the health care value chain works
  • Uncovers the complexity of product procurement and delivery
  • Reveals the pathways and stumbling blocks to improved value chain operations
  • Describes the strategies of manufacturers in three product areas-pharmaceuticals, medical devices, and medical-surgical products
  • Explains the strategies of group purchasing organizations and wholesaler/distributors
  • Reveals the role of e-commerce in the health care value chain
  • Compares the health care value chain with the "extended enterprise" model found in the auto industry
  • Offers insights into the hospital customer of the future
The Health Care Value Chain will give a greater understanding of how the health care supply chain works in order to enable health care executives to form strategic alliances, increase their market power, and gain competitive advantage.

From the Back Cover

Written by Lawton R. Burns and a panel of expert contributors, from the prestigious Wharton School, The Health Care Value Chain analyzes the key developments and future trends in the United States' health care supply chain. Based on a groundbreaking research initiative underwritten by the industry/university consortium— the Center for Health Management Research— this important book offers an in-depth examination of how the health care supply chain helps create value and competitive advantage.
The Health Care Value Chain offers a thorough examination of the trading relationships among the manufacturers of health care products, the distributors, the group purchasing organizations, and the hospital customers and end users of those products. And the authors show how health care professionals and manufacturers can work together to form beneficial strategic alliances. The Health Care Value Chain
  • Shows how the health care value chain works
  • Uncovers the complexity of product procurement and delivery
  • Reveals the pathways and stumbling blocks to improved value chain operations
  • Describes the strategies of manufacturers in three product areas-pharmaceuticals, medical devices, and medical-surgical products
  • Explains the strategies of group purchasing organizations and wholesaler/distributors
  • Reveals the role of e-commerce in the health care value chain
  • Compares the health care value chain with the "extended enterprise" model found in the auto industry
  • Offers insights into the hospital customer of the future
The Health Care Value Chain will give a greater understanding of how the health care supply chain works in order to enable health care executives to form strategic alliances, increase their market power, and gain competitive advantage.


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Customer Reviews

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Most Helpful Customer Reviews

6 of 6 people found the following review helpful By Robert Morris HALL OF FAMETOP 100 REVIEWERVINE VOICE on April 3, 2006
Format: Hardcover
Burns and several of his Wharton School colleagues collaborated on this book as well as a subsequently published book, The Business of Healthcare Innovation, which I also highly recommend. In the later work's Introduction when explaining the value chain perspective, Burns observes that it "analyzes the entire sequence from raw materials (input) market to final customer (output) market. The sequence is labeled a `value chain' because each link in the chain adds value to its inputs. Each link seeks to maximize its contributions to the total product's value added, thereby capturing as much profit as it can. This may involve focusing on only those links which add the greatest value (and let other firms focus on links that add less value), or encompassing as many links as possible in order to maximize the total profit captured (and leave as little as possible for other firms to divide up)."

This is a key point because whatever decision is made, there can be -- and almost always are -- significant consequences insofar as gross volume, net income, and market share are concerned. In this earlier published volume, Burns and his Wharton School collaborators focus on a large segment of the health care industry which, until now, has not received the attention it deserves. They rigorously examine "the trading relationships between [and among] the producers (manufacturers) of health care products, the purchasers of these products (group purchasing organizations, wholesalers/distributors), and the health care providers (hospital customers) that are the end users of those products -- hence the title of this book.
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5 of 6 people found the following review helpful By Sailor Al on July 2, 2005
Format: Hardcover Verified Purchase
For anyone working in the manufacturing or distribution industry within pharmaceutical, diagnostic or medical device companies, this book offers an excellent oversight. Its very helpful for anyone doing business analyst work in a technology department who is new to the industry, but wants to come up to speed rapidly. I recommend it for everyone in my department.

Its rare that a good overview of an industry value chain is available and so accessible to help someone understand how an industry operates.
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1 of 1 people found the following review helpful By James Thompson on January 19, 2006
Format: Hardcover
The author can be forgiven for writing a book that reads a little more like a formal academic paper, given his illustrious credentials. However, it is a surprisingly comfortable read given the complexity of the industry (if you could call it one industry) and the material covered. His analysis is as comprehensive as it is thought provoking. He does an excellent job of portraying the myriad of complex relationships between various evermore technologically sophisticated players within the health value chain. I would have preferred more coverage and discussion of specific company/organizational profiles. But, his artful and deft handling of the complex subject matter presented in a way that gives the reader many "aha" moments makes this book a must-read for anyone serious about the business of healthcare.
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6 of 9 people found the following review helpful By Dr. David Arelette on October 30, 2002
Format: Hardcover Verified Purchase
This is an ace book that will unfortunately only appeal to those wanting to bring all areas of professional health care into a commercial but patient focused new paradigm.
My firm has created a business operating system (all the non clinical stuff) for dentists in Australia - we do everything from the tools to assist them to credibly advise of pharmacy level home care products, to FactSheets on complex services for better and higher levels of compliance to treatment plans, and to achieve all those economies of scale that small businesses can never secure.
It is a well structured book and presents a (psudeo Porter)value based way of looking at health care in a readable and logical way.
If you want to make a branch of healthcare work and you have the energy to think your way through the issues (and to overcome the existing Luddites), this book will assist you greatly.
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