Washington a ‘Wild Card’ for Medical Devices Sector

The medical supplies and devices sector is likely to perform in line with the broader market, but Washington, D.C., is a “wild card” for the industry, with a high potential for turbulence in the upcoming year, industry experts predict.

Analysts at Credit Suisse said the main areas of concern for this sector are:

• The presidential campaigns and prospects for healthcare reform;
• Reform efforts that are already under way, such as efforts to recalibrate Medicare payments;
• Increasing regulatory oversight; and
• Increasing conservatism at the FDA.

The presidential primaries will begin soon, prompting discussions on healthcare reform. Growing concerns about healthcare affordability in general and an increasing focus on medical device implant costs mean the political environment will likely be negative for medical supplies in the next year, the analysts said.