I think another factor is that it's really, really hard to
get your products into hospitals. Most hospitals are part of
large networks and can't make independent purchasing decisions. The entire network has adopt your product in many cases. So you're looking at low-volume, high touch sales that
have a long cycle. Not to mention all the regulatory crap you have to deal with and the coming 2.3% excise tax on total revenue that medical device manufacturers have to pay thanks the Health Care Reform bill.
It's easier to just make a Groupon clone and call it a day.
It's easier to just make a Groupon clone and call it a day.