Stryker Discusses Gainsharing, Looks To Diversified Product Line For Growth
This article was originally published in The Gray Sheet
Executive Summary
Stryker has doubts that gainsharing efforts being considered by hospitals as a way to mediate rampant price increases for certain orthopedic and cardiac devices would be well received by physicians
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Med-Tech Earnings In Brief
Zimmer on gainsharing deal: Orthopedic firm concludes contractual agreements, sets June 1 as a starting point in gainsharing deal with HCA, the largest for-profit hospital group in the U.S. "The opportunity to chase several millions of dollars of new business with a less-crowded field of competitors is always welcome, provided real compliance is delivered," Zimmer CEO Ray Elliott said during a second quarter conference call. Zimmer believes there is little downside to the arrangement, but the firm is monitoring the situation, and thus far "we do not have any proof that this construct will move material amounts of business. Failure to do so must result in a return to higher prices and/or less services." Under the deal, HCA will only purchase reconstructive implants from Stryker, Zimmer and J&J/DePuy (1"The Gray Sheet" April 25, 2005, p. 19). "If it works, it is a great opportunity; if not, I'm not concerned," Elliott stated...
Med-Tech Earnings In Brief
Zimmer on gainsharing deal: Orthopedic firm concludes contractual agreements, sets June 1 as a starting point in gainsharing deal with HCA, the largest for-profit hospital group in the U.S. "The opportunity to chase several millions of dollars of new business with a less-crowded field of competitors is always welcome, provided real compliance is delivered," Zimmer CEO Ray Elliott said during a second quarter conference call. Zimmer believes there is little downside to the arrangement, but the firm is monitoring the situation, and thus far "we do not have any proof that this construct will move material amounts of business. Failure to do so must result in a return to higher prices and/or less services." Under the deal, HCA will only purchase reconstructive implants from Stryker, Zimmer and J&J/DePuy (1"The Gray Sheet" April 25, 2005, p. 19). "If it works, it is a great opportunity; if not, I'm not concerned," Elliott stated...
Wright on gainsharing
Orthopedic industry "gainsharing [arrangements] will not be successful going forward," Chairman Barry Bays says during a Thomas Weisel Partners Growth Forum in San Francisco, Calif. June 15. In addition to the legal hurdles presented by the concept, the "incentives will not outweigh the need of orthopedic surgeons to have choice" in implants. In addition, Bays says that while Wright Medical is not interested in conducting direct-to-consumer advertising, the firm has benefited from Stryker's Jack Nicklaus campaign, which has increased consumer awareness of hip implants (1"The Gray Sheet" April 25, 2005, p. 19)...