eProcurement firm Medical Columbus is increasing its market share of German hospitals.
Medical Columbus is an exemplar for the power of the Internet. While so many dotcoms crash around it, the eProcurement company is quickly building up its client base. It has leveraged its first-mover advantage well, although it must be said it faces little competition. The composition of the German hospital market – 80% of German hospitals are organized in Group Purchasing Organizations (GPOs) – has also helped its market penetration which is expected to reach 40% by the end of the year.
To further develop its growth, the company plans to move into the US. But a snapshot of the market here reveals a very different scenario. Several online exchanges have already been formed. Organizations such as Neoforma and Global Health Exchange are already competing for business, although neither of these online exchanges has yet dominated the market. The US healthcare system is also highly fragmented, much more so than in German or other European healthcare systems. The combination of these factors suggests that Medical Columbus may be unable to re-create its European success across the Atlantic.
