While other industries will feel a boom from the healthcare reform, the medical device sector is expected to take a hit
By Gabe Perna
Usually reform is a positive thing. For the healthcare information technology and generic drug industries, a possible healthcare reform is a good thing. However, in the case of healthcare reform, according to a study, it is anything but good news for the medical device industry. A study from the Wachovia Capital Markets, LLC, took data from a survey of more than 200 institutional investors. It was published in a report called "The Changing Face of Healthcare,"
According to the report, more than 76 percent of the investors said healthcare reform would have a modest to negative impact on the medical device industry. According to the consensus of the investors, orthopedics, cardiovascular and medical equipment budgets would likely face the biggest challenge if a healthcare reform is passed, diagnostics may do a bit better.
The study also reported that comparative effectiveness research will likely have a deflationary effect on pricing. More than 80 percent indicated the new emphasis on evidence-based medicine would have a slight to substantially negative effect on medical technology pricing. They believed the pricing pressure would have a negative effect on the sector's health.
71 percent of the respondents were certain there would be some kind of healthcare reform passed this year. Only 26 percent thought there a single payer system, similar to the UK and Canada, would be implemented. President Barack Obama and Congress have been working diligently to come up with a broad based healthcare reform.
Source: Mass Device