375 karma · joined February 20, 2015
1) High touch sales process, slow sales cycles - ultrasounds take a long time to sell to hospitals/clinics so the sales process is very high touch and requires a significant number of demos and in person time. Those sales reps are usually paid on commission. Cheap products don't make sense to sell this way.
2) Lack of competition and high development cost - Ultrasound machines are a Class II medical device and so are regulated by the FDA. FDA requires compliance with most relevant ISO standards, and there would probably be a dozen relevant standards for an ultrasound machine.
3) Liability - complex medical devices that are used for critical diagnoses create big liability problems for the hospitals/clinicians. They have no incentive to choose the low-cost model sold by a startup. No one ever got sued for choosing GE/Philips/etc.
4) Lack of price transparency - its often hard to find prices for big ticket medical devices, so the natural pressure to reduce costs through competition isn't as effective, especially with a high touch/high cost sales process.
"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed...."
http://assets.bwbx.io/images/iIS_j8I_fYlI/v2/-1x-1.jpg Source: Bloomberg
What's interesting too is that the descent path of the rocket has an engine failure trajectory that will ensure the rocket will fall into the ocean if a failure occurs during the powered descent.
We need a new model for how the DOD and gov as a whole handle software contracts. Our existing procurement models just fall flat on their face with software - Healthcare.gov as another example.