After the acquisition of Medical Scrubs Collection some years back, AvaCare Medical recently made another stride to acquire Murse World. These acquisitions bring value to the Americas healthcare industry. Medical Scrubs Collection is ranked one of the Americas leading medical scrub retailers, its acquisition by AvaCare gives the medical supplies giant the muscle to continue competing with other big names in the industry. It offers medical and dental scrubs for sale from popular brands like Grey’s Anatomy, Landau, Dickies, and Cherokee.
Murse World, on the other hand, is a top medical scrubs store that dedicates its effort to serve the males population by providing masculine designs for medical professionals in the nation. It is the first and the only scrubs store that’s geared towards providing apparel to male professionals including doctors, surgeons, male nurses, and other persons. Murse brings you scrub pants, scrub tops, and scrub sets for males from leading apparel brands like Koi, Barco Uniforms, Wonder Wink, Grey’s Anatomy, MED Couture, Landau, and Dickies.
The acquisition of Medical Scrubs Collection and Murse Worldcomes at time when the Online Medical Supplies Sales industry in US has been booming over the recent years. This industry trend is expected to continue for the next five years to 2022. Revenue generated from the industry was expected to grow at 17.7 percent annually over a 5-year period up to 2017 with a 6.5 percent jump in 2017 to reach $2.6 billion. The shift to online retailers from brick-and-mortar stores along with e-commerce growth have helped the revenue from the industry to increase and it is projected to grow at 7.1 percent annually to the year 2022 reaching $3.7 billion.
The shifting healthcare landscape not only affects the smaller Durable Medical Equipment suppliers but also the large entities. Part of the problem is the rising cost in addition to the shrinking reimbursements. Again, the conflicting and changing policies between managed Care Organizations (MCOs) and Medicaid further add insult to injury. These things make capitalization and cash flow a big challenge, especially when medical equipment suppliers don’t get reimbursement. Being confronted with these hurdles, mergers and acquisitions are coming up to provide practical solutions and reduce the tailbacks.
The AvaCare Medical’s acquisitions of Murse and Medical Scrubs Collection would ensure high quality services, economies of scale, and ability to thrive. Smaller companies in the medical supplies industry may not have the resources to keep pace with the complexity and increasing size of the multi-million dollar industry.
Since larger companies have the financial jaws and they can capitalize on economy of large scale to purchase products from manufacturers and to deliver satisfactorily to customers, this aspect is strengthened when they make acquisitions of the smaller companies. The economy of scale can be seen in form of streamlined workflow, efficient processes like purchases and delivery, or reduced item costs.
The healthcare supplies industry is very competitive and having group business models provides many benefits to the service providers, the customers and clients, as well as the patients. AvaCare Medical’s expansion into medical uniform supply gives it a competitive edge over other players in the industry.
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