Orthopedic Manufacturing Under Pressure
IndyStar.com lists challenges facing orthopedics vendors:
- Hospitals are translating their profitability issues into pricing pressure to keep their costs under control.
- Medicare reimbursement rates for operations such as knee or hip replacements rose more slowly than related prices. The cost of a surgical implant is thus taking a more significant part of the total reimbursement received for surgery.
- Several manufacturers including Biomet, DePuy, and Zimmer were subpoenaed by the U.S. Justice Department regarding consulting contracts with surgeons leading to potential conflicts of interest.
- Investors used to strong growth in the sector put more pressure on them as quarterly goals seem less easy to meet. Stock prices for companies such as Stryker, Symmetry Medical or Zimmer are down by 20+ percent since last September.
April 16, 2006 Related topics: Medical Devices & Products, Orthopedic