As a group, US medical device vendors missed their top-line growth plans over the past two years. Rather than 6% planned growth in the US, they achieved 4%. Industry leaders cite many contributing factors for the slump. Some attribute it to imminent health care reform, with hospitals preparing themselves for a lower-cost environment. Most agree that aggressive hospital cost cuts played a part. Those at the ground level observe that the slump also resulted from a shift in hospital buying power, a shakeup in hospital buying roles, and the inability of device vendors to recalibrate their sales coverage model.
Article by Mike Miller, Vice President, Alexander Group
Published April 2012, MedicalDeviceSummit.com