7-1 Final Project Milestone Three - Business Operations Opportunities Analysis.docx

Ryan Burnet 7-1 Final Project Milestone Three:
Business Operations Opportunities Analysis QSO - 690
Abbott's income is mostly derived from the sale of a wide range of
health-care products under short-term payable contracts. International sales
account for around 60% of overall net revenue. Prescription medications,
nutritional supplements, diagnostic testing equipment, and vascular products
are among Abbott's primary products. The pharmaceutical business is
responsible for the great majority of R&D investment.
The amount of time, trouble, and money spent obtaining and
maintaining approval to advertise newly developed and current goods.
Prescription medicines and medical gadgets are subject to the same
regulations as other manufacturers. Government regulatory actions can
result in product delays or seizures, suspension or cancellation of
manufacturing and selling permits, and other civil or criminal fines.
Many countries limit the selling price of most health-care goods, either
directly or indirectly, through reimbursement or pricing regulations. Many
countries also impose limitations on the entrance of raw materials and
finished commodities. Industry, government organizations, and others are
constantly undertaking research into the safety and efficacy of health-care
products. In certain cases, such inquiries have led in the termination of such
marketing.
Most American states have generic substitution legislation that
mandates or permits a dispensing pharmacist to substitute a different
manufacturer's version of a pharmaceutical product for the one prescribed.
1

Ryan Burnet 7-1 Final Project Milestone Three:
Business Operations Opportunities Analysis QSO - 690
The federal government employs a payment mechanism based on diagnosis-
related groups (DRGs). DRGs and PPSs allow a health care facility to a fixed
compensation based on the diagnosis and/or procedure rather than actual
patient treatment costs. Cost-cutting initiatives in the United States have
extended to the federally sponsored Special Supplemental Nutrition Program
for Women, Infants, and Children. Efforts to minimize health-care expenses
are also being made in the business sector. According to Health Minister Greg
Abbott, legislation may modify access to health care, lower prices, or raise
the rate at which prices rise.